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78R7906 KEL-D


By:  Jones of Dallas                                              H.B. No. 543

Substitute the following for H.B. No. 543:                                    

By:  Mowery                                                   C.S.H.B. No. 543



A BILL TO BE ENTITLED

AN ACT

relating to certain restrictions on the delivery or installation of 
a new or used manufactured home in a flood-prone area.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter K, Chapter 1201, Occupations Code, is 
amended by adding Section 1201.512 to read as follows:
	Sec. 1201.512.  PROHIBITED DELIVERY OR INSTALLATION OF 
MANUFACTURED HOME.  (a)  In this section, "homesite" means the land 
on which the foundation system for a manufactured home is or will be 
located.
	(b)  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), a retailer, broker, or 
salesperson who sells, exchanges, or lease-purchases a new or used 
manufactured home to a consumer for use as a permanent dwelling may 
not:
		(1)  deliver or arrange for the delivery of the home to 
a homesite in a special flood hazard area designated by the director 
of the Federal Emergency Management Agency;
		(2)  install or arrange for the installation of the 
home at a homesite in that area; or
		(3)  assist the consumer in the delivery or 
installation of, or in making arrangements for the delivery or 
installation of, the home to or at a homesite in that area.
	(c)  Before closing on the acquisition of a new or used 
manufactured home for use as a permanent dwelling, a consumer 
seeking to acquire the home must 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.  A consumer may 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)  The following are exempt from the application of this 
section:   
		(1)  a manufactured home that on August 31, 2003, was 
inhabited and located on real property zoned before September 1, 
2003, by a local political subdivision for the purpose of 
developing homesites in a special flood hazard area designated by 
the director of the Federal Emergency Management Agency, if the 
home will remain on or be relocated to real property zoned as 
described by this subsection; and
		(2)  real property zoned before September 1, 2003, by a 
local political subdivision for the purpose of developing homesites 
in a special flood hazard area designated by the director of the 
Federal Emergency Management Agency.
	SECTION 2.  The change in law made by this Act applies only 
to the sale, exchange, or lease-purchase of a new or used 
manufactured home on or after the effective date of this Act.
	SECTION 3.   This Act takes effect June 1, 2003, if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for effect on June 
1, 2003, this Act takes effect September 1, 2003.