This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.
78R7472 KEL-F
By: Uresti H.B. No. 3187
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of manufactured housing in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1201.204, Occupations Code, is amended
to read as follows:
Sec. 1201.204. MANUFACTURER'S CERTIFICATE. A
manufacturer's certificate must show that a manufactured home has
been built in this state or has been built outside of this state and
introduced for sale into this state. The certificate must be filed
by the manufacturer with the department, with a copy filed with the
comptroller. The certificate may not be used as a document of title
[:
[(1) on a form prescribed by the director or on another
document, the original transfer of a manufactured home from the
manufacturer to the retailer; and
[(2) on a form prescribed by the director, each
subsequent transfer of a manufactured home between retailers and
from retailer to owner, if presented with an application for a
document of title].
SECTION 2. Section 1201.208, Occupations Code, is amended
to read as follows:
Sec. 1201.208. PAYMENT OF TAXES REQUIRED FOR ISSUANCE OF
TITLE. (a) The department may not issue a [document of] title for a
new manufactured home installed for use and occupancy in this state
on or after September 1, 2003.
(b) A manufactured home may not be installed unless the
state sales and use tax has been paid.
(c) [(b)] Proof of payment may be shown in any manner
prescribed by the comptroller [department].
(d) A manufactured home that is installed without payment of
the state sales and use tax is subject to a $1,000 fine, to be paid
by the manufacturer.
SECTION 3. Chapter 1201, Occupations Code, is amended by
adding Subchapter N to read as follows:
SUBCHAPTER N. MANUFACTURED HOME TITLES:
PROCEDURE ON OR AFTER SEPTEMBER 1, 2003
Sec. 1201.651. NOTICE OF INSTALLATION. (a) On or after
September 1, 2003, a notice of installation is the only document
that must be recorded to provide notice that a manufactured home has
been permanently installed as provided by Section 1201.654.
(b) For manufactured homes installed before January 1,
2002, or for manufactured homes installed as personal property
after January 1, 2002, if the home has been permanently installed as
provided by Section 1201.654, the owner of the home may file a
notice of installation in the public records to convert the home to
real property. For a notice of installation filed under this
subsection to be effective, a release of any memorandum of lien
existing on the home must also be recorded in the public record.
Sec. 1201.652. MEMORANDUM OF LIEN. (a) On or after
September 1, 2003, a memorandum of lien replaces a document of title
as the sole method for securing a lien on a manufactured home
financed as personal property in this state. With respect to a
manufactured home not permanently installed as provided by Section
1201.654, any memorandum of lien existing on the home must be filed
on a UCC-1 financing statement in the public records of the county
where the home is located. A lienholder may file in each county a
master list of the liens claimed by the lienholder.
(b) For all liens on manufactured homes that have not been
converted to real property by September 1, 2003, a memorandum of
lien executed solely by the lender under penalty of perjury shall be
recorded as provided by Subsection (a). Not later than July 31,
2003, the department shall notify all lienholders of personal
property loans as reflected on the department's records on June 30,
2003, that, to provide constructive notice of the existence of the
lien, a memorandum of lien must be recorded as provided by
Subsection (a) and that the department will no longer title
manufactured homes, provide any information about specific
manufactured homes, or maintain indices of manufactured homes or
liens on manufactured homes. The department shall publish in the
Texas Register a list of all liens on all manufactured homes in its
records on September 1, 2003. This subsection does not affect the
validity or priority of a lien recorded with the department before
September 1, 2003.
Sec. 1201.653. DOCUMENT OF TITLE. For a manufactured home
installed on or after September 1, 2003, a document of title may not
be required or issued at either a first retail sale or a subsequent
sale or transfer.
Sec. 1201.654. REAL PROPERTY; PERSONAL PROPERTY. (a)
Except as provided by Subsection (b), a manufactured home is
considered to be real property if the home is:
(1) installed on real property titled in the name of
the consumer under a deed or contract for sale; and
(2) secured to a permanent foundation and a utility as
provided by Section 1201.222(a).
(b) Until a notice of installation is recorded, a
manufactured home that would otherwise be considered as real
property under Subsection (a) remains personal property if:
(1) the manufactured home is installed on real
property that is not and cannot be claimed as a homestead by the
owner of the home and the real property; or
(2) the owner of the real property signs an affidavit
that the home will not be used as a dwelling by a person related to
the owner within the second degree of consanguinity.
(c) An affidavit under Subsection (b)(2) must be made under
penalty of perjury.
Sec. 1201.655. NOTICE OF INSTALLATION: REQUIRED FORM. The
form of a notice of installation recorded on or after September 1,
2003, must be in substantially the following form:
NOTICE OF INSTALLATION:
Name of Owner:
Description of the Manufactured Home: the manufactured
home's make, model, dimensions, federal label number, state seal
number, and identification or serial number.
Legal Description of the Real Property: Being lot ..., Block
... of the ... Subdivision, a subdivision of ... County, Texas; or
Being a tract of real property situated in ... County, Texas, more
particularly described as ..., there are [] are not [] liens against
the home. If a lien exists, the lien is in favor of ....
This notice of installation is made under penalty of perjury.
Signature of Owner
Acknowledgment
Sec. 1201.656. TRACKING. At the first retail sale, the
retailer shall provide to the department, on a form prescribed by
the department, information sufficient to allow tracking of
manufactured homes built in this state or built outside of this
state and introduced for sale into this state.
SECTION 4. Section 158.152, Tax Code, is amended to read as
follows:
Sec. 158.152. LIEN. The state has a lien on each new
manufactured home installed for use and occupancy in this state for
the collection and payment of the tax imposed by this chapter if the
tax has not been set forth on the invoice or bill of sale on the
initial sale and paid to the manufacturer by the retailer or other
person to whom or for whom the manufactured home is sold, shipped,
or consigned. The lien shall be filed with the county clerk of the
county of this state in which such new manufactured home is
installed for use and occupancy. [In addition, the lien shall be
filed and recorded with the Texas Department of Licensing and
Regulation.]
SECTION 5. (a) Subchapter E, Chapter 1201, Occupations
Code, is amended by adding Section 1201.222 to conform to Section 3,
Chapter 1055, Acts of the 77th Legislature, Regular Session, 2001,
to read as follows:
Sec. 1201.222. CERTAIN MANUFACTURED HOMES CONSIDERED REAL
PROPERTY. (a) A manufactured home that is permanently attached to
real property is classified and taxed as real property if the real
property to which the home is attached is titled in the name of the
consumer under a deed or contract for sale. A manufactured home is
considered permanently attached to real property if the home is
secured to a foundation and connected to a utility, including a
utility providing water, electric, natural gas, propane or butane
gas, or wastewater service.
(b) The closing of a transaction for the acquisition of a
manufactured home considered to be real property under this section
must occur at the office of a federally insured financial
institution, a title insurer, or an attorney at law. If the real
property is purchased under a contract of sale, the contract must be
filed in the real property records of the county in which the home
is installed.
(c) Installation of a manufactured home considered to be
real property under this section must occur in a manner that
satisfies the lending requirements of the Federal Housing
Administration (FHA), Fannie Mae, or Freddie Mac for long-term
mortgage loans or for FHA insurance. The installation of a new
manufactured home must meet, in addition to applicable state
standards, the manufacturer's specifications required to validate
the manufacturer's warranty.
(d) A civil action to enjoin a violation of this section may
be brought by:
(1) a purchaser in the county in which the violation
occurs; or
(2) the county in which the violation occurs.
(e) A manufactured home permanently attached to real
property before January 1, 2002, or placed in a manufactured home
rental community as defined by Section 232.007, Local Government
Code, is not subject to this section.
(f) This section does not require a retailer or retailer's
agent to obtain a license under Chapter 1101.
(b) Section 3, Chapter 1055, Acts of the 77th Legislature,
Regular Session, 2001, is repealed.
SECTION 6. Section 1201.206, Occupations Code, is repealed.
SECTION 7. This Act takes effect immediately 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 immediate effect, this
Act takes effect September 1, 2003.