LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 27, 2001 TO: Honorable Bill G. Carter, Chair, House Committee on Urban Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB239 by Keffer (Relating to the regulation of manufactured homes.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB239, As Introduced: positive impact of $0 through the biennium * * ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from State Employees from * * General Revenue Fund General Revenue Fund FY 2001 * * 0001 0001 * * 2002 $(67,200) $67,200 2.0 * * 2003 (67,200) 67,200 2.0 * * 2004 (67,200) 67,200 2.0 * * 2005 (67,200) 67,200 2.0 * * 2006 (67,200) 67,200 2.0 * ************************************************************************** Technology Impact The bill would require an estimated $11,600 for four personal computers and printers during the 2002-03 biennium Fiscal Analysis The bill would amend the Texas Manufactured Housing Standards Act to require a retailer of manufactured housing, not licensed or registered with the Texas Department of Housing and Community Affairs or a predecessor agency as of September 1, 1987, to pass an examination as a prerequisite for a retailer's license. A new examination fee would be set by the department and charged to each retailer taking the examination. The bill would permit consumers to notify a retailer of any need for warranty service or repairs, including service or repairs under the manufacturer's warranty. Any retailer failing to take timely, appropriate, corrective action as required by department rules could be reported by the consumer to the department in writing. Also, the department's director could order the retailer to perform warranty service or repairs, giving the retailer the right of indemnity against the manufacturer. A retailer could recover actual damages and attorney's fees from the Manufactured Homeowners' Recovery Trust Fund 0926. The bill would take effect on September 1, 2001. Methodology The Texas Department of Housing and Community Affairs estimates that 600 existing retailers would have to take the test in the first year of implementation and about 20 to 40 would have to take the test each year thereafter. The agency estimates that two additional FTEs would be required to implement the provisions of the bill. It is assumed the agency would adjust fees to offset any cost associated with implementing the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 332 Texas Department of Housing and Community Affairs LBB Staff: JK, DB, RT, ER, RC