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