SRC- AMY H.B. 543 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 543
By: Jones, Jesse (Lindsay)
Business & Commerce
4/27/2003
Engrossed


DIGEST AND PURPOSE 

Under current Texas law, an individual who purchases a manufactured home
with cash may not be protected by federal, state, and local regulations
preventing the placement of home in floodprone areas.  An individual may
purchase a manufactured home prior to discovering that the proposed site
for the home is uninhabitable because of restrictions.  H.B. 543
prohibits, unless in compliance with applicable laws, a manufactured home
retailer, broker, or salesperson  from delivering or installing a
manufactured home in a Federal Emergency Management Agency designated
flood hazard area.  This bill also requires a consumer, prior to closing
on the acquisition, to provide evidence that the manufactured home will
not be located in a flood hazard area in a manner that violates applicable
laws. 
 
RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter K, Chapter 1201, Occupations Code, by adding
Section 1201.512, as follows: 

Sec. 1201.512.  PROHIBITED DELIVERY OR INSTALLATION OF MANUFACTURED HOME.
(a)  Defines "homesite." 

(b) Prohibits a retailer, broker, or salesperson who sells, exchanges, or
leasepurchases a new or used manufactured home to a consumer for use as a
permanent dwelling in this state from performing certain acts, unless the
retailer, broker, or salesperson complies with the requirements of the
National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.),
Subchapter I, Chapter 16, Water Code, and any other applicable local,
state, or federal law, and ensures the consumer's compliance with
applicable law by requiring the evidence described by Subsection (c). 

(c) Requires a consumer seeking to acquire the home, before closing on the
acquisition of a new or used manufactured home for use as a permanent
dwelling in this state, to provide to the retailer, broker, or salesperson
selling, exchanging, or lease-purchasing the home satisfactory evidence
that the home will not be located, in a manner that violates local, state,
or federal law, on a homesite  in a special flood hazard area designated
by the director of the Federal Emergency Management Agency.  Authorizes a
consumer to satisfy the evidentiary requirement of this subsection by
providing the retailer, broker, or salesperson, as applicable, with a copy
of any required permit to install a septic tank on the homesite. 

(d) Sets forth exemptions from the application of this section. 

SECTION 2.  Makes application of this Act prospective. 

 SECTION 3.   Effective date: June 1, 2003, or September 1, 2003.