79R6962 MFC-F

By:  Hinojosa                                                     S.B. No. 1197



A BILL TO BE ENTITLED

AN ACT

relating to the habitability of used manufactured homes.                      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1201.452(b), Occupations Code, is 
amended to read as follows:
	(b)  If the home does not have the appropriate seal or label, 
the person must:
		(1)  apply to the department for a seal;  [and]              
		(2)  pay the fee; and                                                  
		(3)  submit to the department a copy of any written 
disclosure required by Section 1201.455(a).
	SECTION 2.  Section 1201.453, Occupations Code, is amended 
to read as follows:
	Sec. 1201.453.  HABITABILITY.  Manufactured housing is 
habitable only if:    
		(1)  there is no defect or deterioration in or damage to 
the home that would materially affect the health or safety of an 
occupant [creates a dangerous situation];
		(2)  the plumbing, heating, and electrical systems are 
in safe working order;
		(3)  the walls, floor, and roof are:                                          
			(A)  free from an [a substantial] opening that was 
not designed; and
			(B)  structurally sound; [and]                              
		(4)  all exterior doors and windows are in place and in 
safe working order; and
		(5)  the home complies with any other habitability 
standards provided by department rule.
	SECTION 3.  Section 1201.455, Occupations Code, is amended 
to read as follows:
	Sec. 1201.455.  WARRANTY OF HABITABILITY REQUIRED.  (a) 
Except as otherwise provided by this subchapter, a person may not 
sell, exchange, or lease-purchase a used manufactured home to a 
consumer for use as a dwelling without providing a written warranty 
that the home is habitable and, in a form prescribed by department 
rule, a written disclosure describing the specific conditions of 
the home and of any appliances that are included in the home.
	(b)  Unless, not later than the 120th [60th] day after the 
date of the sale, exchange, or lease-purchase agreement or the 90th 
day after installation is completed, whichever date is later, the 
consumer notifies the seller in writing of a defect that makes the 
home not habitable, any obligation or liability of the seller under 
this subchapter is terminated.  The warranty must conspicuously 
disclose that notice requirement to the consumer.
	(c)  If negotiations related to the execution of a sale, 
exchange, or lease-purchase agreement are conducted primarily in a 
language other than English, the warranty and written disclosure 
must be provided to the consumer in the language in which the 
negotiations are conducted.
	SECTION 4.  (a)  This Act applies only to the sale, exchange, 
or lease-purchase of a used manufactured home on or after the 
effective date of this Act.  A sale, exchange, or lease-purchase of 
a used manufactured home before the effective date of this Act is 
governed by the law in effect on the date of the sale, exchange, or 
lease-purchase, and the former law is continued in effect for that 
purpose.
	(b)  Not later than November 1, 2005, the Texas Department of 
Housing and Community Affairs shall prepare and make available the 
disclosure forms required by Section 1201.455(a), Occupations 
Code, as amended by this Act.
	SECTION 5.  This Act takes effect September 1, 2005.