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A BILL TO BE ENTITLED
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AN ACT
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relating to licensing, acquisition, and regulation of manufactured |
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housing; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1201.003, Occupations Code, is amended |
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by amending Subdivisions (5), (13), (20), and (23-a) and adding |
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Subdivisions (1-a), (17-a), (18-a), and (25) to read as follows: |
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(1-a) "Affiliate" means a person who, with respect to |
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a license holder, is under the common control of a third person who |
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has the power to: |
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(A) directly or indirectly vote 25 percent or |
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more interest in the license holder or an entity under the authority |
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of the license holder; |
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(B) establish policy for the license holder, |
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directly or through a related person; or |
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(C) hire, elect, or otherwise designate related |
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persons for the license holder. |
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(5) "Business use" means the use of a manufactured |
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home for a purpose other than as a permanent or temporary dwelling. |
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(13) "Lease-purchase" means entering into: |
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(A) a lease contract for a manufactured home in |
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which the lessor retains title; or |
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(B) another agreement that contains [containing] |
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a provision conferring on the lessee an option to purchase a |
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manufactured home. |
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(17-a) "New manufactured home" means a manufactured |
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home that is not a used manufactured home, regardless of its age. |
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(18-a) "Related person" means a person who, directly |
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or indirectly with respect to a license holder: |
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(A) participates in management, policy |
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decisions, or day-to-day activities subject to this chapter; or |
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(B) has been found by the department in a final |
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order to be a related person. |
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(20) "Salesperson" means a person who, as an employee |
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or agent of a retailer or broker, sells or lease-purchases or offers |
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to sell or lease-purchase manufactured housing to a consumer [for
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any form of compensation]. |
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(23-a) "Statement of ownership and location" means a |
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statement issued by the department and setting forth: |
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(A) the ownership and location of a manufactured |
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home [that has been sold at a retail sale or installed] in this |
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state as provided by Section 1201.205; and |
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(B) other information required by this chapter. |
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(25) "Used manufactured home" means a manufactured |
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home for which a statement of ownership and location has been issued |
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or a manufactured home that has been occupied for any use, except |
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that the term does not include: |
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(A) a manufactured home used as a sales model at a |
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licensed retail location; or |
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(B) a manufactured home that: |
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(i) was sold as a new manufactured home; |
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(ii) was installed but never occupied; |
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(iii) had a statement of ownership and |
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location issued with respect to the home; and |
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(iv) was taken back from the consumer |
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because of a first payment default or an agreement to rescind or |
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unwind the transaction. |
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SECTION 2. Section 1201.008, Occupations Code, is amended |
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by adding Subsection (e) to read as follows: |
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(e) Notwithstanding a zoning law or any other law, unless |
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prohibited by an ordinance or charter of a home-rule or general law |
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municipality, if a manufactured home occupies a specific lot in a |
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municipality, the owner of the manufactured home may move the |
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manufactured home from that lot and place another manufactured home |
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on the lot, provided that the replacement is a newer manufactured |
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home and at least as large in living space as the manufactured home |
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that was initially located on the lot. |
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SECTION 3. Section 1201.053(a), Occupations Code, is |
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amended to read as follows: |
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(a) The board [director] shall adopt rules[, issue orders,] |
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and otherwise act as necessary to: |
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(1) comply with the National Manufactured Housing |
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Construction and Safety Standards Act of 1974 (42 U.S.C. Section |
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5401 et seq.), including adopting and enforcing rules reasonably |
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required to implement the notification and correction procedures |
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provided by 42 U.S.C. Section 5414; and |
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(2) provide for the effective enforcement of all |
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HUD-code manufactured housing construction and safety standards in |
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order to have the state plan authorized by the National |
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Manufactured Housing Construction and Safety Standards Act of 1974 |
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(42 U.S.C. Section 5401 et seq.) approved by the secretary of |
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housing and urban development. |
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SECTION 4. Sections 1201.054(b) and (d), Occupations Code, |
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are amended to read as follows: |
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(b) If requested by any member of the public, the board |
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shall hold a hearing on any rule that the board proposes to adopt, |
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other than a rule proposed for adoption under emergency rulemaking. |
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The board must provide notice of a hearing under this subsection not |
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later than the 10th day before the date the hearing is scheduled to |
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be held. If a rule is adopted under emergency rulemaking, only the |
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requirements of Chapter 2001, Government Code, apply [A proposed
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rule must be published in the Texas Register before the 30th day
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preceding the date of a public hearing set to consider the testimony
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of interested persons. Notice of the time and place of the public
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hearing must be published in the Texas Register before the 30th day
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preceding the date of the hearing]. |
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(d) A rule takes effect on the 30th day after the date of |
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publication of notice that the rule has been adopted, except that a |
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rule relating to an installation standard [standards] may not take |
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effect later than the 60th day after the date of publication of |
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notice unless: |
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(1) the board determines that an earlier effective |
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date is required to meet an emergency; and |
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(2) the installation standard is adopted under the |
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emergency rulemaking provisions of Chapter 2001, Government Code. |
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SECTION 5. Section 1201.058, Occupations Code, is amended |
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to read as follows: |
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Sec. 1201.058. [AMOUNT OF] FEES. (a) The board shall |
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establish in reasonable amounts [the] fees [imposed under Sections
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1201.055-1201.057 in amounts that are reasonable and necessary] to |
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cover any purpose under [the cost of administering] this chapter. |
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If the department rules under this chapter provide an option to file |
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a document electronically, the department may charge a discounted |
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fee for the electronic filing. |
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(b) Ten dollars of the fee for each purchase, exchange, or |
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lease-purchase of a manufactured home shall be deposited to the |
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credit of the trust fund and used for the protection programs |
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described by Subchapter I. |
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(c) A fee imposed by this chapter or a rule under this |
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chapter is: |
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(1) earned on the date the applicable payment is |
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received by the department; and |
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(2) not subject to refund. |
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(d) Notwithstanding Subsection (c), the director may, in |
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limited and appropriate circumstances and in accordance with rules |
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adopted by the board, approve the refund of fees. |
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SECTION 6. Sections 1201.101(d), (f), and (g), Occupations |
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Code, are amended to read as follows: |
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(d) A person may not act as an installer [perform an
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installation function on manufactured housing] in this state unless |
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the person holds an installer's license. |
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(f) A person may not act as a salesperson of manufactured |
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housing unless the person holds a salesperson's license. A |
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retailer or broker may not employ or otherwise use the services of a |
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salesperson who is not licensed. A licensed salesperson may not |
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participate in a sale of a manufactured home unless the sale is |
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through the retailer or the broker who sponsored the salesperson's |
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application as required by Section 1201.103(d). |
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(g) A person may not make an announcement concerning the |
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sale, exchange, or lease-purchase of, or offer to sell, exchange, |
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or lease-purchase, a manufactured home to a consumer in this state |
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through an advertisement unless the person holds a manufacturer's, |
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retailer's, or broker's license. This subsection does not apply to: |
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(1) a person who is not required to hold a license as |
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described by Section 1201.102 [to whom a statement of ownership and
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location has been issued showing the person to be the owner of the
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home if the person does not offer to sell, exchange, or
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lease-purchase two or more manufactured homes in a 12-month
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period]; or |
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(2) an advertisement concerning real property on [to] |
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which there is a manufactured home that has been converted to real |
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property in accordance with Section 1201.2055 [permanently
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attached]. |
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SECTION 7. Sections 1201.102(a), (b), and (c), Occupations |
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Code, are amended to read as follows: |
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(a) A licensed installer may employ an unlicensed person to |
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assist the installer in performing installation functions if the |
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licensed installer supervises the unlicensed person and maintains a |
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list of all unlicensed persons employed. The director may issue an |
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order to prohibit a person who is not licensed as an installer from |
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performing installation functions without the supervision of a |
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licensed installer. |
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(b) A license holder may engage a person who is not licensed |
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under this chapter but holds another license issued by this state to |
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provide goods and services in accordance with that license, |
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including the installation or connection of air conditioning, |
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plumbing, or electrical systems. |
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(c) A person who [An employee who acts as an agent of a
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license holder is covered by the holder's license and is not
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required to hold an individual license.
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[(b) Except as provided by Section 1201.510, an independent
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contractor or business entity may not operate under the license of
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another business entity except as an agent or subcontractor of a
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licensed installer who is responsible for an installation function
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performed by the agent or subcontractor.
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[(c) In the case of a sole proprietorship, partnership, or
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corporation that] holds a retailer's license or a broker's license |
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or who is a related person of that license holder[, an owner,
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partner, or officer of that entity] is not required to apply for a |
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salesperson's license [if that owner, partner, or officer is
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properly listed in the retailer's or broker's license application]. |
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SECTION 8. Section 1201.103, Occupations Code, is amended |
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by amending Subsections (a) and (d) and adding Subsection (c-1) to |
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read as follows: |
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(a) An applicant for a license as a manufacturer, retailer, |
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broker, rebuilder, or installer must file with the director a |
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license application containing: |
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(1) the legal name, address, and telephone number of |
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the applicant and each person who is anticipated to be a related |
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person at the time the license is issued; |
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(2) each [the] trade name and the name of each business |
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organization [name] by which the applicant does business under this |
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chapter and[, if incorporated, the name registered with the
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secretary of state and] the address of each [the] business |
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organization; [and] |
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(3) the dates on which the applicant became the owner |
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and operator of the business; and |
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(4) each location to which the license will apply. |
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(c-1) The applicant shall maintain, at the applicant's |
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principal office or another location designated by the applicant |
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within this state, all records required of the applicant under this |
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chapter. |
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(d) An applicant for a salesperson's license must: |
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(1) file with the director an application that |
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provides any information the director considers necessary and that |
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is sponsored by a licensed[, bonded] retailer or broker; and |
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(2) pay the required fee. |
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SECTION 9. Section 1201.104, Occupations Code, is amended |
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to read as follows: |
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Sec. 1201.104. QUALIFICATIONS FOR LICENSE. (a) Except as |
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provided by Subsection (e), as a requirement [prerequisite] for a |
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manufacturer's, retailer's, broker's, installer's, or rebuilder's |
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license, a person who was not licensed or registered with the |
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department or a predecessor agency on September 1, 1987, must, |
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within the year preceding the date of the application for the |
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person's initial license under this chapter, attend and |
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successfully complete 20 hours of instruction in the law, including |
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instruction in consumer protection regulations. If the applicant |
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is not an individual, the applicant must employ at least one related |
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person who meets the requirement described by this subsection. |
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(b) Each individual who is a related person of the applicant |
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must attend and successfully complete 20 hours of instruction in |
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the law described by Subsection (a). The individual must complete |
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the next course of instruction offered after the date on which the |
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individual becomes a related person. The individual is |
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automatically barred from acting as a related person until the |
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individual successfully completes the course of instruction |
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required by Subsection (a). |
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(c) An applicant for a salesperson's license must |
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successfully complete the next course of instruction offered after |
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the date the person is licensed. A salesperson who fails to |
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successfully complete the course of instruction described by |
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Subsection (a) will automatically have the person's license |
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suspended until the person successfully completes the course of |
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instruction. |
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(d) [The director may not issue a license to that person
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until the course of instruction is completed.
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[(b)] The course of instruction must be offered at least |
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quarterly. |
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(e) The board shall adopt rules regarding the content of the |
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course of instruction and the requirements for board approval of |
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the course of instruction, including a rule requiring the course to |
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be presented live and a rule prohibiting any electronic |
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transmission of the course. |
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(f) [(c)Instead of the course of instruction:
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[(1) a manufacturer may request that an authorized
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representative of the department present a one-day, in-plant
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training program; or
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[(2) the director may approve a training program for a
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license applicant that is conducted by a nonprofit educational
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institution or foundation.
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[(d) A manufacturer shall reimburse the department for the
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actual cost of a program presented under Subsection (c)(1).
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[(e)] Subsection (a) does not apply to a license holder [or
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registration holder] who applies: |
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(1) for a license for an additional business location; |
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or |
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(2) to renew or reinstate a license[; or
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[(3)for a salesperson's license]. |
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(g) Successful passage of an [(f)An] examination must |
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[may not] be a prerequisite for the successful completion of an |
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initial course of instruction required under this section, but may |
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not be a prerequisite for continuing education courses [made a
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prerequisite of licensing]. |
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SECTION 10. Section 1201.105, Occupations Code, is amended |
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to read as follows: |
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Sec. 1201.105. SECURITY REQUIRED. (a) The department may |
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not issue or renew a license unless a bond or other security in a |
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form prescribed by the director is filed with the department as |
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provided by this subchapter. The bond or other security is payable |
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to the trust fund except for any amount that is due directly to the |
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retailer under this chapter. |
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(b) If a bond is filed, the bond must be issued by a company |
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authorized to do business in this state and must conform to |
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applicable provisions of the Insurance Code. If other security is |
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filed, that security must be maintained in or by a federally insured |
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depository [banking] institution located in this state. |
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(c) If the department is unable to obtain timely |
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reimbursements from a surety or the department determines that a |
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surety has experienced a deterioration in its financial condition, |
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the board may direct the director to discontinue the acceptance of |
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bonds issued by that surety. |
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SECTION 11. Section 1201.106, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) An applicant for a license or a license holder shall |
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file a bond or other security under Section 1201.105 for the |
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issuance or renewal of a license in the following amount: |
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(1) $100,000 for a manufacturer; |
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(2) $50,000 for a retailer's principal location |
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[retailer]; |
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(3) $50,000 for each additional branch location of a |
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retailer; |
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(4) $50,000 [$30,000] for a rebuilder; |
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(5) [(4)] $50,000 for a broker; or |
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(6) $25,000 [(5)$10,000] for an installer. |
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(a-1) The director may increase the fee amounts under |
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Subsection (a) with respect to the issuance of an initial, renewal, |
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or subsequent license based on an application described by Section |
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1201.118. |
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SECTION 12. Section 1201.108, Occupations Code, is amended |
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to read as follows: |
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Sec. 1201.108. SECURITY: CHANGE IN OWNERSHIP OR LOCATION. |
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(a) A new bond is not required for a change in: |
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(1) ownership of a license holder or a business entity |
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under which the [corporation that is a] license holder conducts |
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business; or |
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(2) location. |
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(b) A license holder shall notify the department not later |
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than the 10th day before the date of a change described in |
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Subsection (a). |
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(c) The license holder shall provide to the department |
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[director may require] a proper endorsement of the original bond to |
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avoid an interruption in the application of the bond to the license. |
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SECTION 13. Subchapter C, Chapter 1201, Occupations Code, |
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is amended by adding Section 1201.1125 to read as follows: |
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Sec. 1201.1125. PROBATIONARY INSTALLER'S OR SALESPERSON'S |
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LICENSE. (a) An applicant for an initial installer's license |
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receives the license only on a probationary basis until the |
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department inspects a sufficient number of installations performed |
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by the installer and fails to find an identified material violation |
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of this chapter or the rules adopted under this chapter. The board, |
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with the advice of the advisory committee established under Section |
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1201.251, shall adopt rules to determine the number of successful |
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installations required for termination of the probationary period |
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under this subsection. |
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(b) The board shall adopt rules under which the director may |
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elect to issue a renewal installer's license or an initial or |
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renewal salesperson's license on a probationary basis. |
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(c) If the director determines that a salesperson or |
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installer should receive a probationary license under Subsection |
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(b), the director may issue the probationary license on the terms |
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and for the period the director considers reasonable in accordance |
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with the rules adopted under that subsection. |
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(d) A person who is issued a probationary license under |
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Subsection (b) may appeal by written notice to the director the |
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terms of the license or the period for which the license is issued |
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not later than the 30th day after the date the license is issued. If |
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the license holder appeals under this subsection, the director |
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shall set the matter for a hearing to be conducted by the State |
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Office of Administrative Hearings. The hearing and any related |
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administrative proceedings are considered to be a contested case |
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subject to Chapter 2001, Government Code. |
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(e) If the license holder does not appeal as permitted by |
|
Subsection (d), the probationary license remains in effect for the |
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period and in accordance with the terms specified in the license. |
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SECTION 14. Section 1201.113, Occupations Code, is amended |
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to read as follows: |
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Sec. 1201.113. [CERTIFICATION AND] CONTINUING EDUCATION |
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PROGRAMS. (a) The department [board] shall approve [recognize,
|
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prepare,] or administer [certification and] continuing education |
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programs for license holders [salespersons regulated] under this |
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chapter. A continuing education program must: |
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(1) be at least six hours in length; and |
|
(2) include the current rules of the department under |
|
this chapter and other matters the department considers relevant. |
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(b) As a prerequisite for license renewal, a license holder |
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must attend a [A person who holds a salesperson's license must
|
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participate in certification and] continuing education course |
|
approved or administered by the department under this section |
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[programs as provided by Subsection (e)]. |
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[(c) To prepare or administer a certification or continuing
|
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education program under this section, the board may contract with:
|
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[(1) a private, nonprofit organization that qualifies
|
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for an exemption from federal income taxation under Section 501(a),
|
|
Internal Revenue Code of 1986, by being listed as an exempt
|
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organization under Section 501(c)(3) of that code; or
|
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[(2)an educational institution.
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[(d) To be considered for a contract under Subsection (c),
|
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an organization or institution must submit an application. The
|
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board may charge an application fee to be set by the board in an
|
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amount necessary to pay the costs of processing the application.
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[(e) A salesperson must complete eight hours of
|
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certification and continuing education programs not later than the
|
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90th day after the date the salesperson's initial license is
|
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issued. To renew a salesperson's license, a salesperson regulated
|
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under this chapter must complete an additional eight hours of
|
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certification and continuing education programs for each renewal.
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The programs must be presented by a board-approved organization or
|
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educational institution and must include instruction in applicable
|
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state and federal law, consumer protection regulations, and ethical
|
|
standards.
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[(f) The department shall issue an appropriate certificate
|
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to a person who completes a certification program and participates
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in a continuing education program under this section.
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[(g) The board shall suspend the license of a salesperson
|
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regulated under this chapter who does not complete the programs as
|
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required by this section. The board shall reinstate the license on
|
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the salesperson's completion of the programs.] |
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SECTION 15. Section 1201.114, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.114. LICENSE EXPIRATION. A license issued under |
|
this chapter, other than a probationary license, [(a) A
|
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manufacturer's, retailer's, broker's, or installer's license is
|
|
valid for one year. A salesperson's license] is valid for two |
|
years. A license may be renewed as provided by the director. A |
|
person whose license has been suspended or revoked or whose license |
|
has expired may not engage in activities that require a license |
|
until the license has been reinstated or renewed. |
|
[(b) The board by rule may adopt a system under which
|
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licenses expire on various dates during the year. For the year in
|
|
which the license expiration date is changed, the department shall
|
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prorate license fees on a monthly basis so that each license holder
|
|
pays only that portion of the license fee that is allocable to the
|
|
number of months during which the license is valid. On renewal of
|
|
the license on the new expiration date, the total license renewal
|
|
fee is payable.] |
|
SECTION 16. Subchapter C, Chapter 1201, Occupations Code, |
|
is amended by adding Section 1201.118 to read as follows: |
|
Sec. 1201.118. ADDITIONAL PROCEDURES FOR CERTAIN LICENSE |
|
APPLICATIONS. The board shall adopt rules providing for the |
|
additional review and scrutiny of an initial, renewal, or |
|
subsequent license application that involves an applicant or a |
|
related person who has previously: |
|
(1) in a final order issued by the department, been |
|
found to have: |
|
(A) participated in one or more violations of |
|
this chapter that served as grounds for the suspension or |
|
revocation of a license; or |
|
(B) engaged in activity subject to this chapter |
|
without holding the required license; |
|
(2) caused the trust fund to incur unreimbursed |
|
payments or claims; or |
|
(3) failed to fulfill the terms of a final order, |
|
including the payment of any assessed administrative penalties. |
|
SECTION 17. Section 1201.1505, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.1505. DEPOSIT ON SPECIALLY ORDERED MANUFACTURED |
|
HOMES. A retailer may require a [an earnest money] deposit on a |
|
specially ordered manufactured home [only if:
|
|
[(1) an earnest money contract has been signed by all
|
|
parties;
|
|
[(2) if applicable, the original binding loan
|
|
commitment letter issued by the lender is delivered to the
|
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consumer; and
|
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[(3) the consumer has not rescinded the contract under
|
|
Section 1201.1521]. |
|
SECTION 18. The heading to Section 1201.151, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 1201.151. REFUNDS [REFUND OF DEPOSIT]. |
|
SECTION 19. Section 1201.151, Occupations Code, is amended |
|
by amending Subsection (a) and adding Subsection (e) to read as |
|
follows: |
|
(a) Except as otherwise provided by this section, a |
|
retailer[, salesperson, or agent of the retailer] must refund a |
|
consumer's deposit not later than the 15th day after the date that a |
|
written request for the refund is received from the consumer. |
|
(e) Not later than the 15th day after the date a consumer |
|
exercises the consumer's right of rescission as provided by Section |
|
1201.1521, the retailer shall refund to the consumer all money and |
|
other consideration received from the consumer without offset or |
|
deduction if the retailer and the consumer entered into a binding |
|
written agreement under which the consumer submitted to the |
|
retailer a deposit that was a down payment for the home. |
|
SECTION 20. Section 1201.1521, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.1521. RESCISSION OF CONTRACT FOR SALE, EXCHANGE, |
|
OR LEASE-PURCHASE OF HOME. (a) A person who acquires a |
|
manufactured home by purchase, exchange, or lease-purchase may, not |
|
later than the third day after the date the applicable contract is |
|
signed, rescind the contract without penalty or charge. The right |
|
of rescission applies only to a transaction between a retailer and a |
|
consumer. |
|
(b) Subject to rules adopted by the board, a consumer may |
|
modify or waive for a bona fide personal financial emergency the |
|
consumer's right to rescind the contract without penalty or charge. |
|
The rules adopted by the board shall, to the extent practicable, be |
|
modeled on the federal rules for the modification or waiver of a |
|
right of rescission under Title 12, Code of Federal Regulations, |
|
Part 226. |
|
SECTION 21. Section 1201.158, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.158. SALESPERSON. A licensed salesperson may |
|
work only for the person's sponsoring [for more than one] retailer |
|
or broker [or at more than one sales location]. |
|
SECTION 22. Section 1201.159, Occupations Code, is amended |
|
by amending Subsection (a) and adding Subsections (c) and (d) to |
|
read as follows: |
|
(a) A broker shall ensure that the seller gives the buyer |
|
the applicable disclosures and warranties that the buyer would have |
|
received if the buyer had purchased the manufactured home through a |
|
licensed retailer unless the seller is a consumer in a transaction |
|
as provided by Section 1201.456. |
|
(c) A broker in a transaction under this chapter shall |
|
provide to a person who engages the broker's services a written |
|
disclosure of any interest that the broker represents in the |
|
transaction. |
|
(d) A broker may assist a person who is offering or |
|
otherwise engaging in the sale, exchange, or lease-purchase of a |
|
manufactured home only if that person holds a license required by |
|
this chapter. |
|
SECTION 23. Section 1201.161, Occupations Code, is amended |
|
by amending Subsections (a) and (d) and adding Subsection (e) to |
|
read as follows: |
|
(a) Notwithstanding any other statute or rule or ordinance, |
|
a licensed retailer or licensed installer is not required to obtain |
|
a permit, certificate, or license or pay a fee to transport |
|
manufactured housing to the place of installation except as |
|
required by[:
|
|
[(1)the department; or
|
|
[(2)] the Texas Department of Transportation under |
|
Subchapter E, Chapter 623, Transportation Code. |
|
(d) The copies of permits and the lists and information |
|
required under this section may be provided electronically. |
|
(e) The department shall pay the reasonable cost of |
|
providing the materials required [copies or the list and
|
|
information] under Subsection (b) or (c) unless the materials are |
|
provided electronically. |
|
SECTION 24. Sections 1201.162(a) and (e), Occupations Code, |
|
are amended to read as follows: |
|
(a) Before the completion of a credit application or not |
|
later than one day before entering into an agreement for a sale, |
|
exchange, or lease-purchase that will not be financed, the retailer |
|
[or agent] must provide to the consumer a written disclosure in a |
|
form prescribed by rules adopted by the board. The disclosure form |
|
shall: |
|
(1) be printed in at least 12-point type; |
|
(2) address matters of concern relating to the costs |
|
and obligations that may be associated with manufactured home |
|
ownership, matters to be considered in making any financing |
|
decisions, related costs that may arise in acquiring a manufactured |
|
home, and other matters the board considers appropriate to promote |
|
informed decision-making by the consumer with respect to the |
|
acquisition and ownership of a manufactured home; and |
|
(3) conspicuously disclose the consumer's right of |
|
rescission. [the following statement that is printed in at least
|
|
12-point type and not attached to or combined with any other written
|
|
material:
|
|
["When buying a manufactured home, there are a number of
|
|
important considerations, including price, quality of
|
|
construction, features, floor plan, and financing alternatives.
|
|
["The United States Department of Housing and Urban
|
|
Development (HUD) helps protect consumers through regulation and
|
|
enforcement of HUD design and construction standards for
|
|
manufactured homes. Manufactured homes that meet HUD standards are
|
|
known as 'HUD-code manufactured homes.' The Texas Department of
|
|
Housing and Community Affairs regulates Texas manufacturers,
|
|
retailers, brokers, salespersons, installers, and rebuilders of
|
|
manufactured homes.
|
|
["If you plan to place a manufactured home on land that you
|
|
own or will buy, you should consider items such as:
|
|
["ZONING AND RESTRICTIVE COVENANTS. Municipalities or
|
|
subdivisions may restrict placement of manufactured homes on
|
|
certain lots, may prohibit the placement of homes within a certain
|
|
distance from property lines, may require that homes be a certain
|
|
size, and may impose certain construction requirements. You may
|
|
need to obtain building permits and homeowner association approval
|
|
before you place a manufactured home on a certain lot. Contact the
|
|
local municipality, county, and subdivision manager to find out if
|
|
you can place the manufactured home of your choice on a certain lot.
|
|
["WATER. Be sure that your lot has access to water. If you
|
|
must drill a well, contact several drillers for bids. If water is
|
|
available through a municipality, utility district, water
|
|
district, or cooperative, you should inquire about the rates you
|
|
will have to pay and the costs necessary to join the water system.
|
|
["SEWER. If your lot is not serviced by a municipal sewer
|
|
system or utility district, you will have to install an on-site
|
|
sewer facility (commonly known as a septic system). There are a
|
|
number of concerns or restrictions that will determine if your lot
|
|
is adequate to support an on-site sewer facility. Check with the
|
|
local county or a licensed private installer to determine the
|
|
requirements that apply to your lot and the cost to install such a
|
|
system.
|
|
["HOMEOWNER ASSOCIATION FEES. Many subdivisions have
|
|
mandatory assessments and fees that lot owners must pay. Check with
|
|
the manager of the subdivision in which your lot is located to
|
|
determine if any fees apply to your lot.
|
|
["TAXES. Your home will be appraised and subject to ad
|
|
valorem taxes as are other single-family residential structures.
|
|
These taxes must be escrowed with your monthly payment, except that
|
|
your lender is not obligated to impose an escrow requirement in a
|
|
real property transaction involving a manufactured home if the
|
|
lender is a federally insured financial institution and does not
|
|
otherwise require the escrow of taxes, insurance premiums, fees, or
|
|
other charges in connection with loans secured by residential real
|
|
property. On closing, you will be notified of all provisions
|
|
pertaining to federal truth in lending disclosures.
|
|
["INSURANCE. Your lender may require you to obtain insurance
|
|
that meets lender requirements and protects your investment. You
|
|
should request quotes from the agent of your choice to obtain the
|
|
insurance.
|
|
["TYPES OF MORTGAGES AVAILABLE. The acquisition of a
|
|
manufactured home may be financed by a real estate mortgage or a
|
|
chattel mortgage. A real estate mortgage may have a lower interest
|
|
rate than a chattel mortgage.
|
|
["RIGHT OF RESCISSION. If you acquire a manufactured home,
|
|
by purchase, exchange, or lease-purchase, you may, not later than
|
|
the third day after the date the applicable contract is signed,
|
|
rescind the contract without penalty or charge."] |
|
(e) Failure by the retailer to comply with the disclosure |
|
provisions of this section does not affect the validity of a |
|
subsequent conveyance or transfer of title of a manufactured home |
|
or otherwise impair a title or lien position of a person other than |
|
the retailer. The consumer's execution of a signed receipt of a |
|
copy of the notice required by Subsection (a) constitutes |
|
conclusive proof that the notice was delivered. If the consumer |
|
grants a person other than the retailer a lien on the manufactured |
|
home, the right of rescission immediately ceases on the date the |
|
lien is filed with the department. |
|
SECTION 25. Section 1201.164, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.164. ADVANCE COPY OF [INSTALLMENT] CONTRACT AND |
|
DISCLOSURE STATEMENTS; OFFER BY RETAILER. (a) In a transaction |
|
that is to be financed and that will not be subject to the federal |
|
Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533) |
|
[chattel mortgage transaction involving an installment contract], |
|
a retailer shall deliver to a consumer at least 24 hours before the |
|
contract is fully executed the contract, with all required |
|
information included, signed by the retailer. The delivery of the |
|
[installment] contract, with all required information included, |
|
signed by the retailer constitutes a firm offer by the retailer. |
|
The consumer may accept the offer not earlier than 24 hours after |
|
the delivery of the contract. If the consumer has not accepted the |
|
offer within 72 hours after the delivery of the contract, the |
|
retailer may withdraw the offer. |
|
(b) Before the execution of the contract, the consumer may |
|
modify or waive the consumer's right to rescind the contract or the |
|
waiting period provided by Subsection (a) if the consumer |
|
determines that the acquisition of the manufactured home is needed |
|
for a bona fide personal financial emergency. If the consumer has a |
|
bona fide personal financial emergency that requires the immediate |
|
acquisition of the manufactured home, the consumer shall give the |
|
retailer a dated written statement that describes the personal |
|
financial emergency, specifically modifies or waives the waiting |
|
period or the right of rescission, as applicable, and bears the |
|
signature of each consumer who is entitled to the waiting period or |
|
right of rescission. On receipt of the written statement described |
|
by this subsection, the retailer shall immediately provide to the |
|
consumer all of the disclosures required by this subchapter and |
|
engage in the transaction without reference to the required waiting |
|
period or the right of rescission. |
|
(c) A form printed for the purpose of Subsection (b) may be |
|
used only: |
|
(1) with respect to a manufactured home that is to be |
|
located in an area that has been declared by the governor to be a |
|
disaster area as provided by Section 418.014, Government Code; and |
|
(2) until the first anniversary of the date the |
|
governor declared the area to be a disaster area. |
|
SECTION 26. Section 1201.203, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.203. FORMS; RULES. (a) The board [director] |
|
shall [prescribe forms and] adopt rules and forms relating to: |
|
(1) the manufacturer's certificate; |
|
(2) the statement of ownership and location; |
|
(3) the application for a statement of ownership and |
|
location; and |
|
(4) the issuance of an initial or revised [a] |
|
statement of ownership and location [at the first retail sale and
|
|
for a subsequent sale or transfer of a manufactured home]. |
|
(b) The board [director] shall adopt rules for the |
|
documenting of the ownership and location of a manufactured home |
|
that has been previously owned in this state or another state. The |
|
rules must protect the holder of a lien [a lienholder] recorded with |
|
the department [on a statement of ownership and location, a
|
|
certificate, or other document of title]. |
|
SECTION 27. Section 1201.204, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.204. MANUFACTURER'S CERTIFICATE. (a) A |
|
manufacturer's certificate must show: |
|
(1) on a form prescribed by the board [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 board [director], each |
|
subsequent transfer of a manufactured home between retailers and |
|
from retailer to owner, if the transfer from retailer to owner |
|
involves a completed application for the issuance of a statement of |
|
ownership and location. |
|
(b) At the first retail sale of a manufactured home, a |
|
manufacturer's certificate automatically converts to a document |
|
that does not evidence any ownership interest in the manufactured |
|
home described in the document. A security interest in inventory |
|
evidenced by a properly recorded inventory lien [the manufacturer's
|
|
certificate] automatically converts to a security interest in |
|
proceeds and cash proceeds. |
|
(c) After the first retail sale of a manufactured home, the |
|
retailer shall [may] submit the manufacturer's certificate for that |
|
home to the department. If an application for an initial statement |
|
of ownership and location is made without the required |
|
manufacturer's certificate and the retailer does not produce the |
|
certificate as required by this subsection, the department shall, |
|
on or before the issuance of the requested statement of ownership |
|
and location, send written notice to that effect to each party |
|
currently reflected in the department's records as having a |
|
recorded lien on the inventory of that retailer. Failure to include |
|
the manufacturer's certificate with an application described by |
|
this subsection does not impair a consumer's ability to obtain, on |
|
submitting an otherwise complete application, a statement of |
|
ownership and location free from a lien other than a lien created by |
|
or consented to by the consumer. |
|
SECTION 28. Section 1201.205, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.205. STATEMENT OF OWNERSHIP AND LOCATION FORM. A |
|
statement of ownership and location must be issued on a |
|
board-approved form and must provide: |
|
(1) the name [names] and address [addresses] of the |
|
[purchaser and] seller and the name and address of the new owner, if |
|
the owner's address is different from the address of the home; |
|
(2) the manufacturer's name and address and any model |
|
designation, if available; |
|
(3) in accordance with the board's [director's] rules: |
|
(A) the outside dimensions of the manufactured |
|
home when installed for occupancy, as measured to the nearest |
|
one-half foot at the base of the home, exclusive of the tongue or |
|
other towing device; and |
|
(B) the approximate square footage of the home |
|
when installed for occupancy; |
|
(4) the identification number for each section or |
|
module of the home; |
|
(5) the physical address of the real property on [the
|
|
county of this state in] which the home has been [is] installed for |
|
occupancy, including the name of the county and, if different from |
|
the address of the home, the address of the new owner of the home; |
|
(6) in chronological order of recordation, the date of |
|
each lien other than a tax lien on the home and the name and address |
|
of each lienholder, or, if a lien is not recorded, a statement of |
|
that fact; |
|
(7) a statement regarding tax liens which must state: |
|
"On January 1st of each year, a tax lien is placed on a |
|
manufactured home in favor of each taxing unit with taxing |
|
authority over the real property on which the home is located. To |
|
enforce that lien, the lien must be recorded with the manufactured |
|
housing division of the Texas Department of Housing and Community |
|
Affairs, as provided by law. You may check that division's records |
|
through its Internet website or contact the division to identify |
|
any recorded tax liens. To identify the amount of unpaid tax |
|
liability, contact the taxing unit for the county in which the home |
|
is located on January 1st of that year" [the signature of the owner
|
|
in ink, given on receipt of the document]; |
|
(8) a statement that if two or more eligible persons, |
|
as determined by Section 1201.213, file with the application for |
|
the issuance of a statement of ownership and location an agreement |
|
signed by all the persons providing that the home is to be held |
|
jointly with a right of survivorship, the director shall issue the |
|
statement of ownership and location in all the names; |
|
(9) [the location of the home;
|
|
[(10)] a statement of whether the owner has elected to |
|
treat the home as real property or personal property; |
|
(10) [(11)] statements of whether the home is a |
|
salvaged manufactured home and whether the home is reserved for |
|
business use only; and |
|
(11) [(12)] any other information the board |
|
[director] requires. |
|
SECTION 29. Section 1201.2055, Occupations Code, is amended |
|
by amending Subsection (b) and adding Subsections (i) and (j) to |
|
read as follows: |
|
(b) A statement of election under Subsection (a) must be |
|
executed before a notary on the board-approved form [made by
|
|
affidavit]. |
|
(i) Notwithstanding Subsection (d), if a mortgage loan made |
|
in connection with a transaction under this chapter is to be secured |
|
by real property that includes the manufactured home, the mortgage |
|
loan is funded, and a deed of trust covering the real property and |
|
all improvements on the real property is recorded, but the licensed |
|
title company or attorney who closed the loan failed to complete the |
|
conversion of the manufactured home to real property in accordance |
|
with this chapter, the holder or servicer of the mortgage loan at |
|
any time may apply for a statement of ownership and location, |
|
including making an election in the application with respect to |
|
real property status, and may obtain from the department a |
|
certified copy of the statement of ownership and location if, not |
|
later than the 60th day before the date of an application for a |
|
statement of ownership and location electing real property status, |
|
the record owner of the home, as reflected in the department's |
|
records, has been provided written notice by certified mail at: |
|
(1) the physical address of the location of the home |
|
and, if the address of the record owner is different from that of |
|
the location of the home, the mailing address of the owner; and |
|
(2) any other location known or believed after a |
|
reasonable inquiry by the holder or servicer of the loan to be an |
|
address at which the owner may receive mail or an address of record. |
|
(j) The board by rule shall require evidence that the |
|
mortgage loan holder or servicer applying for a real property |
|
election has complied with the requirements of this section. |
|
SECTION 30. Section 1201.206, Occupations Code, is amended |
|
by amending Subsections (b), (c), (d), and (f) and adding |
|
Subsections (g) through (i) to read as follows: |
|
(b) At the first retail sale of a manufactured home, the |
|
retailer shall provide for the installation of the home and ensure |
|
that the application for the issuance of a statement of ownership |
|
and location is properly completed and submitted. The consumer |
|
shall return the completed application to the retailer. The |
|
retailer shall surrender to the department the manufacturer's |
|
certificate in accordance with Section 1201.204 and the |
|
manufacturer's statement of origin at the same time that the |
|
retailer submits the application for the first statement of |
|
ownership and location. |
|
(c) Not later than the 60th [30th] day after the date of the |
|
retail sale, the retailer shall provide to the department the |
|
completed application for the issuance of a statement of ownership |
|
and location. If for any reason the retailer does not timely comply |
|
with this subsection, the consumer may apply for the issuance of a |
|
statement of ownership and location. |
|
(d) Not later than the 60th [30th] day after the date of each |
|
subsequent sale or transfer of a home that is considered to be |
|
personal property, the seller or transferor shall provide to the |
|
department a completed application for the issuance of a new |
|
statement of ownership and location. If for any reason the seller |
|
or transferor does not timely comply with this subsection, the |
|
consumer may apply for the issuance of a statement of ownership and |
|
location. |
|
(f) If the owner of a manufactured home relocates the home, |
|
the owner shall apply for the issuance of a new statement of |
|
ownership and location not later than the 60th [30th] day after the |
|
date the home is relocated. The department shall require that the |
|
owner submit evidence that the home was relocated in accordance |
|
with the requirements of the Texas Department of Transportation. |
|
(g) If the seller accepts a used manufactured home as part |
|
of the consideration for the sale of another manufactured home, the |
|
seller shall provide to the department a completed application for |
|
the issuance of a new statement of ownership and location |
|
reflecting the change of ownership of the used manufactured home |
|
from the previous owner of the used manufactured home to the seller |
|
at the same time that the seller files the completed application for |
|
the issuance of a statement of ownership and location for the |
|
manufactured home that was sold by the seller in that transaction. |
|
If the seller is a retailer, on the application for the issuance of |
|
the new statement of ownership and location for the used |
|
manufactured home the seller shall indicate whether that home has |
|
been added to the inventory of the retailer. |
|
(h) At the time the seller files an application for the |
|
issuance of a statement of ownership and location for a used |
|
manufactured home that has not been added to a retailer's |
|
inventory, the seller shall file with the department a written |
|
statement from the tax assessor-collector that there are no |
|
personal property taxes on the manufactured home that have accrued |
|
within the 18-month period preceding the date of the transaction in |
|
which the seller acquired the used manufactured home. |
|
(i) If a person who sells a manufactured home to a consumer |
|
for residential use fails to file with the department the |
|
application for the issuance of a statement of ownership and |
|
location and the appropriate filing fee within the applicable |
|
period, the department may assess an additional fee of not less than |
|
$100 against the seller. The department may enforce the collection |
|
of the additional fee from the seller through a judicial |
|
proceeding. The department shall place on the application for the |
|
statement of ownership and location the following statement in a |
|
clear and conspicuous manner: |
|
"THE FILING OF AN APPLICATION FOR THE ISSUANCE OF A STATEMENT |
|
OF OWNERSHIP AND LOCATION LATER THAN SIXTY (60) DAYS AFTER THE DATE |
|
OF A SALE TO A CONSUMER FOR RESIDENTIAL USE MAY RESULT IN A FEE OF AT |
|
LEAST ONE HUNDRED DOLLARS ($100). A LATE APPLICATION CANNOT BE |
|
PROCESSED UNTIL THE FEE DESCRIBED BY THIS PARAGRAPH IS PAID IN |
|
FULL." |
|
SECTION 31. Subchapter E, Chapter 1201, Occupations Code, is |
|
amended by adding Section 1201.2061 to read as follows: |
|
Sec. 1201.2061. NOTICE OF INSTALLATION. (a) A notice of |
|
installation must be filed with the department on the board's |
|
prescribed form. If the installation involves a secondary |
|
relocation of the home, the notice must be accompanied by: |
|
(1) a copy of the original notice of installation; or |
|
(2) certification that a copy of the original notice |
|
of installation has been provided to the chief appraiser of the |
|
county in which the home is installed. |
|
(b) The notice required by Subsection (a) may be delivered |
|
by certified mail or by electronic transmission of the document in a |
|
commonly readable format. |
|
(c) If the method to report the installation of a relocated |
|
home is the method specified by Subsection (a)(2), the department |
|
may adopt a discounted fee for filing the notice of installation. |
|
(d) In addition to providing each tax assessor-collector |
|
with the monthly report required by Section 1201.220, the |
|
department shall, on request, provide a tax assessor-collector with |
|
one copy of any reported notice of installation. |
|
SECTION 32. Subchapter E, Chapter 1201, Occupations Code, |
|
is amended by adding Section 1201.2062 to read as follows: |
|
Sec. 1201.2062. DIFFICULTY IN DOCUMENTING CHAIN OF TITLE. |
|
Notwithstanding any provision in this chapter, if a person acquires |
|
a manufactured home and the owner of record and an intervening owner |
|
of a lien on the home cannot be located to assist in documenting the |
|
chain of title, the department may issue a statement of ownership |
|
and location to the person claiming ownership if that person |
|
submits an application for the statement and provides: |
|
(1) a supporting affidavit describing the chain of |
|
title and the status of any liens; and |
|
(2) any reasonable supporting proof that the director |
|
may require. |
|
SECTION 33. Section 1201.207, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.207. ISSUANCE OF STATEMENT OF OWNERSHIP AND |
|
LOCATION. (a) Except as provided for in Subsection (a-1), the |
|
[The] department shall process any completed application for the |
|
issuance of a statement of ownership and location not later than the |
|
15th working day after the date the application is received by the |
|
department. If the department rejects an application, the |
|
department shall provide a clear and complete explanation of the |
|
reason for the rejection and instructions on how to cure any |
|
defects, if possible. |
|
(a-1) As soon as practicable after June 30 of each year, the |
|
department shall, except for applications relating to new |
|
manufactured homes and applications accompanied by tax |
|
certificates, discontinue its issuance of statements of ownership |
|
and location until all tax liens filed with the department before |
|
June 30 in relation to manufactured homes are processed and |
|
recorded or rejected. The department shall post on its Internet |
|
website a notice as to the anticipated date on which the department |
|
intends to begin issuing statements of ownership and location again |
|
and the anticipated date on which the department intends to again |
|
comply with the period for processing applications prescribed by |
|
Subsection (a). |
|
(b) If the department issues a statement of ownership and |
|
location for a manufactured home, the department shall maintain a |
|
record of the statement of ownership and location in its electronic |
|
records [place in its files the original statement of ownership and
|
|
location] and shall mail a [certified] copy to the record owner of |
|
the home and to each [any] lienholder. |
|
(c) Except with respect to any change in use, but subject to |
|
Section 1201.2075, if the department has issued a statement of |
|
ownership and location for a manufactured home, the department may |
|
issue a subsequent statement of ownership and location for the home |
|
only if all parties reflected in the department's records as having |
|
an interest in the manufactured home give their written consent or |
|
release their interest, [either] in writing, [or] by operation of |
|
law, or by the department's procedures provided by Section |
|
1201.2062 to document ownership and lien status. After the |
|
department has issued a statement of ownership and location, the |
|
department may not alter the record of the ownership or lien status |
|
of a manufactured home for activity that occurred before the |
|
issuance of the statement of ownership and location unless the |
|
department: |
|
(1) obtains the written permission of the owner of |
|
record for the manufactured home or a court order; or |
|
(2) determines that an exception is necessary in |
|
accordance with rules adopted by the board. |
|
(d) Notwithstanding any other provision of this chapter, if |
|
the consumer purchases a new manufactured home from a retailer in |
|
the ordinary course of business, regardless of whether a statement |
|
of ownership and location has been issued for the manufactured |
|
home, the consumer is a bona fide purchaser for value without the |
|
need to provide any notice and is entitled to ownership of the |
|
manufactured home free of all liens and entitled to a statement of |
|
ownership and location to that effect on payment by the consumer of |
|
the purchase price to the retailer. If an existing lien on the |
|
manufactured home is perfected with the department, the owner of |
|
the lien is entitled to recover the value of the lien from the |
|
retailer. |
|
SECTION 34. Section 1201.2075, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.2075. CONVERSION FROM PERSONAL PROPERTY TO REAL |
|
PROPERTY. (a) Except as provided by Subsection (b) or Section |
|
1201.2062, the department may not issue a statement of ownership |
|
and location for a manufactured home that is being converted from |
|
personal property to real property until: |
|
(1) each lien on the home is released by the |
|
lienholder; or |
|
(2) each lienholder gives written consent, to be |
|
placed on file with the department. |
|
(b) The department may issue a statement of ownership and |
|
location before the release of any liens or the consent of any |
|
lienholders as required by this section [only] if the department |
|
releases a certified copy of the statement to: |
|
(1) a licensed title insurance company that has issued |
|
a commitment to issue a title insurance policy covering all prior |
|
liens on the home in connection with a loan that the title company |
|
has closed; or |
|
(2) a federally insured financial institution or |
|
licensed attorney who has obtained from a licensed title insurance |
|
company a title insurance policy covering all prior liens on the |
|
home. |
|
SECTION 35. Section 1201.2076, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.2076. CONVERSION FROM REAL PROPERTY TO PERSONAL |
|
PROPERTY. (a) Except as provided by Subsection (b) or Section |
|
1201.2062, the [The] department may not issue a statement of |
|
ownership and location for a manufactured home that is being |
|
converted from real property to personal property until the |
|
department has inspected the home and determined that it is |
|
habitable and has notified the appropriate tax assessor-collector |
|
of the conversion and: |
|
(1) each lien, including a tax lien, on the home is |
|
released by the lienholder; or |
|
(2) each lienholder, including a taxing unit, gives |
|
written consent, to be placed on file with the department. |
|
(b) The department may rely on a commitment for title |
|
insurance, a title insurance policy, or an attorney's title opinion |
|
to determine that a lien on real property has been released as |
|
required by Subsection (a). |
|
SECTION 36. Section 1201.208, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.208. PAYMENT OF TAXES REQUIRED FOR ISSUANCE OF |
|
STATEMENT OF OWNERSHIP AND LOCATION. (a) A license holder who |
|
sells, exchanges, or lease-purchases a new manufactured home to a |
|
consumer shall pay the required sales and use tax on the home [The
|
|
department may not issue a statement of ownership and location for a
|
|
new manufactured home installed for occupancy in this state unless
|
|
the state sales and use tax has been paid]. |
|
(b) If a license holder sells, exchanges, or |
|
lease-purchases a home without paying the required sales and use |
|
tax, the payment shall be made from the trust fund for an amount not |
|
more than the maximum amount available in bond or other security |
|
required by Section 1201.106 for the person's license. The trust |
|
fund may file with the license holder's surety a claim for |
|
reimbursement in the amount deducted from the trust fund under this |
|
section [Proof of payment may be shown in any manner prescribed by
|
|
the department]. |
|
SECTION 37. Section 1201.210, Occupations Code, is amended |
|
by amending Subsection (c) and adding Subsection (d) to read as |
|
follows: |
|
(c) A notice of appeal and request for hearing must be filed |
|
with the director not later than the 30th day after the date of |
|
notice of the director's action. If an appeal is not timely made, |
|
the revocation or suspension described in the notice becomes final. |
|
(d) The department shall prohibit any activity with respect |
|
to the statement of ownership and location other than the |
|
recordation of liens, including tax liens, until a revocation or |
|
suspension has become final. |
|
SECTION 38. Section 1201.214(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) An owner or lienholder may provide to the department a |
|
[the] document of title and any additional information required by |
|
the department and request that the department issue a statement of |
|
ownership and location to replace the document of title. The |
|
department shall mail to the owner or lienholder a certified copy of |
|
the statement of ownership and location issued under this |
|
subsection. |
|
SECTION 39. Section 1201.216(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) If the owner of a manufactured home notifies the |
|
department that the owner intends to treat the home as real property |
|
or to reserve its use for a business purpose or salvage, the |
|
department shall indicate on the statement of ownership and |
|
location for the home that: |
|
(1) the owner of the home has elected to treat the home |
|
as real property or to reserve its use for a business purpose or |
|
salvage; and |
|
(2) except as provided by Section 1201.2055(h), the |
|
home is [department] no longer [considers the home to be] a |
|
manufactured home for purposes of regulation under this chapter or |
|
recordation of liens, including tax liens. |
|
SECTION 40. Section 1201.217, Occupations Code, is amended |
|
by amending Subsections (b) and (c) and adding Subsection (f) to |
|
read as follows: |
|
(b) Before declaring a manufactured home abandoned, the |
|
owner of real property on which the home is located must send a |
|
notice of intent to declare the home abandoned to the record owner |
|
of the home, [and] all lienholders at the addresses listed on the |
|
home's statement of ownership and location on file with the |
|
department, and the tax assessor-collector for each taxing unit |
|
that imposes ad valorem taxes on the real property on which the home |
|
is located. The notice must include the physical address at which |
|
the home is currently located. If the person giving notice knows |
|
that the person for whom the notice is intended does not reside and |
|
is no longer receiving mail at that address, a reasonable effort |
|
shall be made to locate the person for whom the notice is intended |
|
and to give the person notice at an address where the person |
|
receives mail. Mailing of the notice by certified mail, return |
|
receipt requested, postage prepaid, to the persons required to be |
|
notified by this subsection constitutes conclusive proof of |
|
compliance with this subsection. |
|
(c) On receipt of a notice of intent to declare a |
|
manufactured home abandoned, the owner of the home or a lienholder |
|
may enter the real property on which the home is located to remove |
|
the home. The real property owner must disclose to the owner or |
|
lienholder seeking to remove the home the location of the home and |
|
must grant that person reasonable access to the home. A person who |
|
removes the home is responsible to the real property owner for any |
|
damage to the real property resulting from the removal of the home. |
|
(f) This section does not apply if the person who owns or |
|
previously owned an interest in the manufactured home, or that |
|
person's affiliate or related person: |
|
(1) owns the real property on which the home is |
|
located; or |
|
(2) claims that the home is abandoned. |
|
SECTION 41. Sections 1201.219(a), (b), and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) A lien on manufactured homes in inventory is perfected |
|
only by filing the lien [a security agreement] with the department |
|
on the required form [in a form that contains the information the
|
|
director requires]. Once perfected, the lien applies to the |
|
manufactured homes in the inventory as well as to any proceeds from |
|
the sale of those homes. The department may suspend or revoke the |
|
license of a retailer who fails to satisfy a perfected inventory |
|
lien under the terms of the security agreement. |
|
(b) Except as provided by Subsection (a), a lien on a |
|
manufactured home is perfected only by filing with the department |
|
the notice of lien on the required [a] form [provided by the
|
|
department]. The form must require the disclosure of the original |
|
dollar amount of the lien as well as the name and address of the |
|
person in whose name the manufactured home is listed on the tax |
|
roll. The department on its Internet website shall disclose the |
|
date of each lien filing and the original amount of the lien claimed |
|
in each filing and shall provide a notice that the amount shown does |
|
not include additional amounts such as interest, penalties, and |
|
attorney's fees. The statement required by Section 1201.205(7) |
|
[recordation of a lien with the department] is notice to all persons |
|
that the lien exists. Except as expressly provided by Chapter 32, |
|
Tax Code, a lien recorded with the department has priority, |
|
according to the chronological order of recordation, over another |
|
lien or claim against the manufactured home. The tax |
|
assessor-collector for any taxing unit with the power to tax the |
|
manufactured home shall file any appropriate tax lien on the home. A |
|
single filing by a tax assessor-collector is a filing for each |
|
taxing unit for which the tax assessor is empowered to collect. |
|
(c) Notwithstanding any other provision of this or any other |
|
law [subchapter], the filing of a lien [security agreement by a
|
|
secured party perfecting a lien] on the inventory of a retailer does |
|
not prevent a buyer in the ordinary course of business, as defined |
|
by Section 1.201, Business & Commerce Code, from acquiring good and |
|
marketable title free of that lien [interest], and the department |
|
may not consider that [security interest as a] lien for the purpose |
|
of title issuance. |
|
SECTION 42. Section 1201.220, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.220. REPORT TO COUNTY TAX ASSESSOR-COLLECTOR. |
|
(a) The department shall provide to each county tax |
|
assessor-collector in this state a monthly report that, for each |
|
manufactured home reported in the notice of installation to the |
|
department as having been installed in the county during the |
|
preceding month and for each manufactured home previously installed |
|
in the county for which a transfer of ownership was recorded by the |
|
issuance of a statement of ownership and location during the |
|
preceding month, lists: |
|
(1) the name of the owner of the home; |
|
(2) the name of the manufacturer of the home, if |
|
available; |
|
(3) the model designation of the home, if available; |
|
(4) the identification number of each section or |
|
module of the home; |
|
(5) the address or location where the home was |
|
reported as [is] installed; and |
|
(6) the reported date of the installation of the home. |
|
(b) The director shall provide a copy of the report to the |
|
chief appraiser of the appraisal district established for the |
|
county in which the home is reported as installed. |
|
SECTION 43. Section 1201.251, Occupation Code, is amended |
|
by amending Subsection (a) and adding Subsection (d) to read as |
|
follows: |
|
(a) In accordance with Subsection (d), the board [The
|
|
director] shall adopt standards and requirements for: |
|
(1) the installation and construction of manufactured |
|
housing that are reasonably necessary to protect the health, |
|
safety, and welfare of the occupants and the public; and |
|
(2) the construction of HUD-code manufactured homes in |
|
compliance with the federal standards and requirements established |
|
under the National Manufactured Housing Construction and Safety |
|
Standards Act of 1974 (42 U.S.C. Section 5401 et seq.). |
|
(d) To ensure that the standards and requirements adopted |
|
under this section are recommended by qualified persons, the board |
|
may adopt rules that provide for the approval of foundation systems |
|
and devices by licensed engineers. A generic installation standard |
|
adopted by rule shall first be reviewed by an advisory committee |
|
established by the board. The advisory committee must include one |
|
or more engineers in addition to representatives of manufacturers, |
|
installers, and manufacturers of stabilization systems or devices. |
|
The advisory committee shall submit a report to the board providing |
|
each comment and concern regarding any proposed rule. The members |
|
of the committee are not personally liable for providing the advice |
|
to the board. |
|
SECTION 44. Section 1201.253, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.253. HEARING ON STANDARD OR REQUIREMENT. The |
|
director shall publish notice and conduct a public hearing [in
|
|
accordance with Sections 1201.054 and 1201.060] before: |
|
(1) adopting a standard or requirement authorized by |
|
this subchapter; |
|
(2) amending a standard authorized by this subchapter; |
|
or |
|
(3) approving a standard proposed by a local |
|
governmental unit under Section 1201.252. |
|
SECTION 45. Section 1201.255, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.255. INSTALLATION OF MANUFACTURED HOUSING. (a) |
|
Except as authorized under Section 1201.252, manufactured housing |
|
that is installed must be installed in compliance with the |
|
standards and rules adopted and orders issued under this chapter. |
|
An uninstalled manufactured home may not be occupied for any |
|
purpose [issued by the director]. |
|
(b) An installer may not install a manufactured home at a |
|
location that has evidence of ponding, run-off under heavy rains, |
|
or bare uncompacted soil unless: |
|
(1) the installer obtains the owner's signature on a |
|
form adopted by the board disclosing that such conditions may |
|
contribute to problems with the stabilization system for that |
|
manufactured home, including possible damage to that home; and |
|
(2) the owner accepts that risk in writing. |
|
SECTION 46. Section 1201.301(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) In enforcing this chapter, the director may authorize a |
|
state inspector to travel inside or outside of the state to inspect |
|
the [a manufacturing] facility of a license holder. |
|
SECTION 47. The heading to Section 1201.302, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 1201.302. INSPECTION BY STATE AGENCIES AND LOCAL |
|
GOVERNMENTAL UNITS [ENTITIES OTHER THAN DEPARTMENT]. |
|
SECTION 48. Section 1201.302(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) To ensure that a manufactured home sold or installed in |
|
this state complies with the standards code, the director may by |
|
contract provide for [a federal agency or] an agency or political |
|
subdivision of this state or another state to perform an inspection |
|
or inspection program under this chapter or under rules adopted by |
|
the board [director]. |
|
SECTION 49. Subchapter G, Chapter 1201, Occupations Code, |
|
is amended by adding Section 1201.306 to read as follows: |
|
Sec. 1201.306. ENGINEER APPROVAL OF INSPECTION COMPONENTS. |
|
In the inspection of the installation of a manufactured home under |
|
this chapter the department may use or permit the use of a device or |
|
procedure that has been reviewed and approved by a licensed |
|
engineer if the use complies with any instructions, conditions, or |
|
other requirements specified by that engineer. |
|
SECTION 50. Sections 1201.351(a) and (b), Occupations Code, |
|
are amended to read as follows: |
|
(a) The manufacturer of a new HUD-code manufactured home |
|
shall warrant, in a separate written document, that: |
|
(1) the home is constructed or assembled in accordance |
|
with all building codes, standards, requirements, and regulations |
|
prescribed by the United States Department of Housing and Urban |
|
Development under the National Manufactured Housing Construction |
|
and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.); |
|
and |
|
(2) the home and all appliances and equipment included |
|
in the home are free from defects in materials or workmanship, other |
|
than cosmetic defects. |
|
(b) The manufacturer's warranty is in effect until at least |
|
the first anniversary of the date of initial installation of the |
|
home at the consumer's homesite or the date of closing of the |
|
consumer's acquisition of a new home that has already been |
|
installed, as applicable. |
|
SECTION 51. Section 1201.352, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.352. RETAILER'S WARRANTY ON NEW HOME. (a) The |
|
retailer of a new HUD-code manufactured home shall warrant to the |
|
consumer in writing that: |
|
(1) installation of the home at the initial homesite |
|
was or will be, as applicable, completed in accordance with all |
|
department standards, rules, orders, and requirements; and |
|
(2) appliances and equipment included with the sale of |
|
the home and installed by the retailer are or will be: |
|
(A) installed in accordance with the |
|
instructions or specifications of the manufacturers of the |
|
appliances or equipment; and |
|
(B) free from defects in materials or |
|
workmanship, except as provided by Subsection (a-1). |
|
(a-1) The retailer may expressly disclaim or limit any |
|
warranty regarding cosmetic defects. |
|
(b) The retailer's warranty on a new HUD-code manufactured |
|
home is in effect until the first anniversary of the date of the: |
|
(1) [date of] initial installation of the home at the |
|
consumer's homesite; or |
|
(2) closing of the consumer's acquisition of the home |
|
if the home has already been installed. |
|
(c) Before the signing of a binding retail installment sales |
|
contract or other binding purchase agreement on a new HUD-code |
|
manufactured home, the retailer must give the consumer a copy of: |
|
(1) the manufacturer's warranty; |
|
(2) the retailer's warranty; |
|
(3) the warranties given by the manufacturers of |
|
appliances or equipment included with the home; and |
|
(4) the name and address of the manufacturer or |
|
retailer to whom the consumer is to give notice of a warranty |
|
service request. |
|
(d) Not later than the 30th day after the date of |
|
installation of the home, the retailer shall deliver to the |
|
consumer a copy of the warranty given to the retailer by the |
|
licensed installer. |
|
SECTION 52. Section 1201.353, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.353. NOTICE OF NEED FOR WARRANTY SERVICE. (a) |
|
The consumer shall give written notice to the manufacturer, [or] |
|
retailer, or installer, as applicable, of a need for warranty |
|
service or repairs. |
|
(b) Written notice to the department is considered to be |
|
notice to the manufacturer, [or] retailer, or installer beginning |
|
on the third business day after the date the department forwards to |
|
the applicable license holder the notice by regular mail or by |
|
electronic mail as a scanned copy of the notice. |
|
SECTION 53. Section 1201.354, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.354. CORRECTIVE ACTION REQUIRED. The |
|
manufacturer, [or] retailer, or installer, as applicable, shall |
|
take appropriate corrective action within a reasonable period as |
|
required by department rules to fulfill the written warranty |
|
obligation. |
|
SECTION 54. Section 1201.355, Occupations Code, is amended |
|
by amending Subsections (a) and (b) and adding Subsection (d) to |
|
read as follows: |
|
(a) If the manufacturer, [or] retailer, or installer does |
|
not provide the consumer with proper warranty service, the consumer |
|
may, at any time, request the department to perform a consumer |
|
complaint home inspection. The department may not charge a fee for |
|
the inspection. |
|
(b) On payment of the required inspection fee, the |
|
manufacturer, [or] retailer, or installer may request the |
|
department to perform a consumer complaint home inspection if the |
|
manufacturer or retailer: |
|
(1) believes the consumer's complaints are not covered |
|
by the warranty of the manufacturer, [or] retailer, or installer, |
|
as applicable; |
|
(2) believes that the warranty service was properly |
|
provided; or |
|
(3) disputes responsibility concerning the warranty |
|
obligation. |
|
(d) Notwithstanding any other provision of this section, |
|
the department may perform a home inspection at any time if the |
|
department determines that there is a reasonable possibility that a |
|
condition of the manufactured home may present an imminent threat |
|
to public health or safety. The department shall obtain an |
|
inspection search warrant if required by other law. |
|
SECTION 55. Section 1201.356, Occupations Code, is amended |
|
by amending Subsections (a), (b), and (c) and adding Subsections |
|
(f), (g), and (h) to read as follows: |
|
(a) Not later than the 10th day after the date of a consumer |
|
complaint home inspection, the department shall send a written |
|
report and any order to the consumer, manufacturer, installer, and |
|
retailer by certified mail, return receipt requested. |
|
(b) The report shall specify: |
|
(1) each of the consumer's complaints; and |
|
(2) whether the complaint is covered by either the |
|
manufacturer's, installer's, or retailer's warranty and, if so, |
|
which of those warranties. |
|
(c) The director shall issue to the manufacturer, |
|
installer, or retailer an appropriate order for corrective action |
|
by the manufacturer, installer, or retailer, specifying a |
|
reasonable period for completion of the corrective action. |
|
(f) The installer and retailer are responsible for the |
|
warranty of installation on new HUD-code manufactured homes. If |
|
the department determines that a complaint is covered by the |
|
installation warranty, the director shall issue to the installer an |
|
order requiring corrective action. If the installer fails to |
|
perform the corrective action, the installer is subject to the |
|
provisions of Section 1201.357 and the director shall issue the |
|
same order for corrective action to the retailer with an additional |
|
period, not to exceed 10 days, allowed for performing the |
|
corrective action, unless additional time for compliance is needed, |
|
as established by a showing of good cause by the retailer. |
|
(g) If the retailer is required to perform the corrective |
|
action under Subsection (f) because of the installer's failure to |
|
comply with the director's order, the retailer may seek |
|
reimbursement from the installer. |
|
(h) Notwithstanding Subsection (f), the period for |
|
performing the required warranty work may be shortened by the |
|
director as much as reasonably possible if the warranty work may be |
|
necessary to address an imminent threat to public health or safety. |
|
SECTION 56. Section 1201.357, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.357. FAILURE TO PROVIDE WARRANTY SERVICE. (a) If |
|
the manufacturer, [or] retailer, or installer, as applicable, fails |
|
to provide warranty service within the period specified by the |
|
director [under Section 1201.356], the manufacturer, [or] |
|
retailer, or installer must show good cause in writing as to why the |
|
manufacturer, [or] retailer, or installer failed to provide the |
|
service. |
|
(b) If the manufacturer, [or] retailer, or installer, as |
|
applicable, fails or refuses to provide warranty service in |
|
accordance with the department order under Section 1201.356, the |
|
director shall hold an informal meeting [a hearing] at which the |
|
manufacturer, [or] retailer, or installer must show cause as to why |
|
the manufacturer's, [or] retailer's, or installer's license should |
|
not be suspended or revoked. The consumer may express the |
|
consumer's views at the informal meeting. Following the meeting, |
|
the director shall: |
|
(1) resolve the matter by agreed order; |
|
(2) dismiss the matter if no violation is found to have |
|
occurred; or |
|
(3) institute an administrative action that may |
|
include suspension, revocation, assessment of administrative |
|
penalties, or any combination of those actions. |
|
(c) If the manufacturer, [or] retailer, or installer is |
|
unable to provide warranty service in accordance with the |
|
department order under Section 1201.356 as a result of an action of |
|
the consumer, the manufacturer, [or] retailer, or installer must |
|
make that allegation in the written statement required by |
|
Subsection (a). The department shall investigate the allegation, |
|
and if the department determines that the allegation is credible, |
|
the department shall issue a new order specifying the date and time |
|
of the proposed corrective action. The department shall send the |
|
order to the consumer and the manufacturer, [or] retailer, or |
|
installer, as applicable, by certified mail, return receipt |
|
requested. If the consumer refuses to comply with the department's |
|
new order, the manufacturer, [or] retailer, or installer, as |
|
applicable: |
|
(1) is discharged from the obligations imposed by the |
|
relevant department orders; |
|
(2) has no liability to the consumer with regard to |
|
that warranty; and |
|
(3) is not subject to an action by the department for |
|
failure to provide warranty service. |
|
SECTION 57. Section 1201.358, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.358. FAILURE TO SHOW GOOD CAUSE; ADDITIONAL |
|
ORDERS ISSUED BY DIRECTOR [HEARING RESULTS]. (a) Failure by the |
|
manufacturer, [or] retailer, or installer, as applicable, to show |
|
good cause under Section 1201.357(a) is a sufficient basis for |
|
suspension or revocation of the manufacturer's, [or] retailer's, or |
|
installer's license. |
|
(b) If [after the hearing under Section 1201.357(b), the
|
|
director determines that the order under Section 1201.356 was
|
|
correct in the determination of the warranty obligation of the
|
|
manufacturer or retailer, failure or refusal by the manufacturer or
|
|
retailer to comply with the order is a sufficient cause for
|
|
suspension or revocation of the manufacturer's or retailer's
|
|
license. If] the director determines that the order issued under |
|
Section 1201.357 was incorrect regarding the warranty [that] |
|
obligation, the director shall issue a final order stating the |
|
correct obligation and the right of the manufacturer or retailer to |
|
indemnification from the other. |
|
(c) The director may issue an order: |
|
(1) directing a manufacturer, [or] retailer, or |
|
installer whose license is not revoked and who is not out of |
|
business to perform the warranty obligation of a manufacturer, [or] |
|
retailer, or installer whose license is revoked or who is out of |
|
business; and |
|
(2) giving the manufacturer or retailer performing the |
|
obligation the right of indemnification against the other. |
|
(d) A manufacturer, [or] retailer, or installer entitled to |
|
indemnification under this section is a consumer for purposes of |
|
Subchapter I and may recover actual damages [and attorney's fees] |
|
from the trust fund. |
|
SECTION 58. Section 1201.361, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.361. INSTALLER'S WARRANTY. (a) For each |
|
installation [all secondary installations not covered by the
|
|
retailer's warranty described by Section 1201.352 and for the
|
|
installation of all used manufactured homes], the installer shall |
|
give [the manufactured home owner] a written warranty that the |
|
installation of the home was performed in accordance with all |
|
department standards, rules, orders, and requirements. The |
|
retailer who is responsible for the installation of a new HUD-code |
|
manufactured home shall give the manufactured home owner the |
|
warranty for the installation. If the retailer subcontracts the |
|
installation to a licensed installer, the retailer and installer |
|
are jointly and severally liable for performance of the warranty. |
|
(b) The warranty must conspicuously disclose the |
|
requirement that the consumer notify the installer of any claim in |
|
writing in accordance with the terms of the warranty. Unless the |
|
warranty provides for a longer period, the installer has no |
|
obligation or liability under a warranty for a new manufactured |
|
home for any defect described in a written notice received from the |
|
consumer more than one year [two years] after the date of |
|
acquisition of a home that has already been installed, as |
|
applicable, or the date of the installation. |
|
SECTION 59. Subchapter H, Chapter 1201, Occupations Code, |
|
is amended by adding Section 1201.362 to read as follows: |
|
Sec. 1201.362. ADDITIONAL CORRECTIVE ACTION |
|
AUTHORITY. Notwithstanding the limitations and terms of a |
|
warranty, if during any inspection the department identifies an |
|
aspect of an installation that does not conform to the applicable |
|
requirements, the director may: |
|
(1) order the license holder who performed the |
|
installation to correct the defect; or |
|
(2) if that license holder is no longer licensed, |
|
issue an order directing another licensed installer to correct the |
|
installation and reimburse the installer from the trust fund for |
|
the costs of that corrective action. |
|
SECTION 60. Section 1201.402(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The director shall administer the trust fund [as trustee
|
|
of that fund]. |
|
SECTION 61. Section 1201.404(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The trust fund and the director are not liable to the |
|
consumer if the trust fund does not have the money necessary to pay |
|
the actual damages [and attorney's fees] determined to be payable. |
|
The director shall record the date and time of receipt of each |
|
verified complaint and, as money becomes available, pay the |
|
consumer whose valid claim is the earliest by date and time. |
|
SECTION 62. Section 1201.405, Occupations Code, is amended |
|
by adding Subsections (f) and (g) to read as follows: |
|
(f) The trust fund is not liable and the director may not pay |
|
attorney's fees or actual damages: |
|
(1) to reimburse an affiliate or related person of a |
|
license holder, unless the director issues an order under Section |
|
1201.358(c); |
|
(2) to correct a defect that is solely cosmetic in |
|
nature; or |
|
(3) to address matters not provided for in this |
|
subchapter, unless those matters involve: |
|
(A) a breach of warranty; |
|
(B) a failure to return or apply in accordance |
|
with a written agreement money received from a consumer or to which |
|
the consumer was entitled; or |
|
(C) the breach of an agreement to provide goods |
|
or services necessary to the safe and habitable use of a |
|
manufactured home, including an agreement for goods or services |
|
involving steps, air conditioning, access to utilities, or sewage |
|
and wastewater treatment. |
|
(g) The board by rule may place reasonable limits on the |
|
costs that may be approved for payment from the trust fund, |
|
including payments made under Section 1201.358, and may require |
|
consumers making claims that may be subject to reimbursement from |
|
the trust fund to provide reasonable estimates establishing those |
|
costs. The rules adopted by the board may specify procedures and |
|
requirements the board considers necessary and advisable for the |
|
administration of the trust fund. |
|
SECTION 63. Section 1201.406, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.406. PROCEDURE FOR RECOVERY FROM TRUST FUND. (a) |
|
To recover from the trust fund, a consumer must file a written, |
|
sworn complaint in the form required by the director not later than |
|
the second anniversary of: |
|
(1) the date of the alleged act or omission causing the |
|
actual damages; or |
|
(2) the date the act or omission is discovered or |
|
should reasonably have been discovered. |
|
(b) On receipt of a verified complaint, the department |
|
shall: |
|
(1) notify each appropriate license holder and the |
|
issuer of any surety bond related to the license; [and] |
|
(2) investigate the claim; |
|
(3) issue a preliminary determination on the claim; |
|
and |
|
(4) give the consumer, the license holder, and any |
|
surety related to the license: |
|
(A) an opportunity to resolve the matter by |
|
agreement; or |
|
(B) the opportunity to dispute the preliminary |
|
determination. |
|
(c) If the matter is not resolved as provided by Subsection |
|
(b)(4) before the 30th day after the date the preliminary |
|
determination is issued, the preliminary determination |
|
automatically becomes final and the director shall make demand on |
|
the surety or deduct any payable amount of the claim from the |
|
license holder's security [to determine:
|
|
[(A)the validity of the claim; and
|
|
[(B) whether the complaint can be resolved by
|
|
remedial action of the license holder]. |
|
SECTION 64. Section 1201.407, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.407. DISAGREEMENT OF PARTIES; INFORMAL DISPUTE |
|
RESOLUTION PROCESS. (a) If a preliminary determination is |
|
disputed, the [license holders or a license holder and a consumer
|
|
disagree as to responsibility for a complaint, the] department |
|
shall conduct an informal dispute resolution process, including a |
|
home inspection if appropriate, to resolve the dispute. |
|
(b) For a preliminary determination that had been disputed |
|
[claim determined] to become final and [be] valid, the department |
|
shall make any changes in the determination the director considers |
|
to be appropriate and issue another written [a] preliminary |
|
determination [during the informal dispute resolution process] as |
|
to the responsibility and liability of the manufacturer, retailer, |
|
broker, and installer. |
|
(c) Before making a final determination, the department |
|
shall provide a license holder a period of 10 days [an opportunity] |
|
to comment on the preliminary determination. |
|
(d) After considering the comments made in relation to the |
|
preliminary determination, if any, the director shall issue a final |
|
determination. |
|
(e) Not later than the 10th day after the date of its |
|
issuance, the final determination may be appealed to the board by |
|
giving written notice to the director, who shall submit the matter |
|
to the board for consideration at the next meeting for which the |
|
matter can be publicly posted in the manner as required by Chapter |
|
551, Government Code. |
|
(f) Any license [The department shall notify a license
|
|
holder's surety and give the surety an opportunity to participate
|
|
in the informal dispute resolution process if the license holder:
|
|
[(1)is out of business;
|
|
[(2)is no longer licensed; or
|
|
[(3) has filed for liquidation or reorganization in
|
|
bankruptcy.
|
|
[(e) If, after receiving notice of the claim, a license
|
|
holder or the license holder's surety fails or refuses to
|
|
participate in the informal dispute resolution process, the
|
|
license] holder or surety, as applicable, is bound by the |
|
department's final determination of responsibility and liability. |
|
SECTION 65. Sections 1201.409(a) and (b), Occupations Code, |
|
are amended to read as follows: |
|
(a) Except as otherwise provided by Subchapter C, the trust |
|
fund shall be reimbursed by the surety on a bond or from other |
|
security filed under Subchapter C for the amount of a claim that[:
|
|
[(1)] is paid out of the trust fund by the director to |
|
a consumer in accordance with this subchapter[; and
|
|
[(2) resulted from an act or omission of the license
|
|
holder who filed the bond or other security]. |
|
(b) Payment by the surety or from the other security must be |
|
made not later than the 30th day after the date of [receipt of] |
|
notice from the director that a consumer claim has been paid. |
|
SECTION 66. Section 1201.410, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.410. CONSUMER INFORMATION [INFORMATIONAL
|
|
PAMPHLET]. [(a)] The director shall prepare information for [a
|
|
pamphlet informing] consumers of their rights to recover from the |
|
trust fund. The director shall make the information available to |
|
consumers: |
|
(1) on the department's Internet website; and |
|
(2) in hard-copy format to any member of the public who |
|
submits a request for the information. |
|
[(b) The director may contract with a private party for the
|
|
printing and distribution of the pamphlet.] |
|
SECTION 67. Section 1201.451(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Not later than the 60th [30th] day after the effective |
|
date of the transfer of ownership or the date the seller or |
|
transferor obtains possession of the necessary and properly |
|
executed documents, the seller or transferor shall forward to the |
|
purchaser or transferee the necessary, executed documents. On |
|
receipt of the documents, the purchaser or transferee shall apply |
|
for the issuance of a statement of ownership and location. If the |
|
seller or transferor fails to forward to the purchaser or |
|
transferee the necessary, executed documents as required by this |
|
subsection, the purchaser or transferee may apply directly for the |
|
issuance of a statement of ownership and location. |
|
SECTION 68. 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 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 a substantial opening that was not |
|
designed; and |
|
(B) structurally sound; and |
|
(4) all exterior doors and windows are in place and |
|
operate properly. |
|
SECTION 69. Section 1201.457(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A person may not [The purchaser of a used manufactured
|
|
home for business use or the purchaser of a salvaged manufactured
|
|
home may not sell, exchange, or lease-purchase the home for use as a
|
|
dwelling or] knowingly allow another [any] person to occupy or use |
|
the home as a dwelling unless the director issues a new statement of |
|
ownership and location indicating that the home is no longer |
|
reserved for business use or salvage. On the purchaser's |
|
application to the department for issuance of a new statement of |
|
ownership and location, the department shall inspect the home and, |
|
if the department determines that the home is habitable, issue the |
|
statement of ownership and location. |
|
SECTION 70. Section 1201.459, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.459. COMPLIANCE NOT REQUIRED FOR SALE FOR |
|
COLLECTION OF DELINQUENT TAXES. (a) In selling a manufactured home |
|
to collect delinquent taxes, a tax assessor-collector [collector] |
|
is not required to comply with this subchapter or another provision |
|
of this chapter relating to the sale of a used manufactured home. |
|
(b) If the home does not have a serial number, seal, or |
|
label, a tax appraiser or a [the] tax assessor-collector |
|
[collector] may: |
|
(1) apply to the department for a seal; |
|
(2) pay the applicable fee; and |
|
(3) recover that fee as part of the cost of the sale of |
|
the home. |
|
(b-1) The tax appraiser or the tax assessor-collector |
|
assumes full responsibility for affixing to the home a seal issued |
|
to the tax appraiser or the tax assessor-collector under Subsection |
|
(b). |
|
(c) A [The] seal issued to the tax appraiser or the tax |
|
assessor-collector [collector] is for identification purposes only |
|
and does not imply that: |
|
(1) the home is habitable; or |
|
(2) a purchaser of the home at a tax sale may obtain a |
|
new statement of ownership and location from the department without |
|
an inspection for habitability. |
|
SECTION 71. Section 1201.461, Occupations Code, is amended |
|
by adding Subsections (g) and (h) to read as follows: |
|
(g) A political subdivision of this state that identifies a |
|
manufactured home within its jurisdiction as a salvaged |
|
manufactured home may impose with respect to that home an |
|
inspection, a requirement for corrective action, or other |
|
requirements that would apply if the home were not a salvaged |
|
manufactured home. |
|
(h) A license holder may not participate in the sale, |
|
exchange, lease-purchase, or installation for use as a dwelling of |
|
a manufactured home that is salvaged and that has not been repaired |
|
as required by this chapter and the rules adopted under this |
|
chapter. The sale, exchange, lease-purchase, or installation of a |
|
salvaged manufactured home for use as a dwelling constitutes an |
|
imminent threat to public health or safety. A license holder that |
|
participates in a sale, exchange, lease-purchase, or installation |
|
in violation of this section: |
|
(1) is subject to the imposition of penalties and |
|
other sanctions provided for in this chapter; and |
|
(2) commits an offense punishable as a Class B |
|
misdemeanor. |
|
SECTION 72. Section 1201.503, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.503. PROHIBITED ALTERATION. Before the sale to a |
|
consumer of a new manufactured home to which a label has been |
|
attached and before installation of the home, a manufacturer, |
|
retailer, broker, or installer may not alter the home or cause the |
|
home to be altered without obtaining prior written approval from a |
|
licensed engineer and delivering that written approval to the |
|
department. |
|
SECTION 73. Section 1201.506(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A retailer or broker: |
|
(1) shall comply with Subtitles A and B, Title 4, |
|
Finance Code, and the Truth in Lending Act (15 U.S.C. Section 1601 |
|
et seq.); [and] |
|
(2) may not advertise an interest rate or finance |
|
charge that is not expressed as an annual percentage rate; and |
|
(3) shall comply with all applicable provisions of the |
|
Finance Code. |
|
SECTION 74. Section 1201.509, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.509. PROHIBITED RETENTION OF DEPOSIT. A |
|
retailer[, salesperson, or agent of the retailer] may not refuse to |
|
refund a consumer's deposit except as provided by Section 1201.151. |
|
SECTION 75. Subchapter K, Occupations Code, is amended by |
|
adding Section 1201.513 to read as follows: |
|
Sec. 1201.513. DISPOSITION OF CERTAIN USED MANUFACTURED |
|
HOMES; OCCUPANCY OF HOMES PRIOR TO CLOSING. (a) A retailer may not |
|
sell or otherwise transfer a used manufactured home acquired in |
|
exchange for another manufactured home before completing the |
|
transaction involving the other manufactured home. |
|
(b) A retailer may not knowingly permit a consumer to occupy |
|
a manufactured home that is the subject of a sale, exchange, or |
|
lease-purchase before the closing of any required financing unless |
|
the consumer is first given a form adopted by the board disclosing |
|
that if for any reason the financing does not close, the consumer |
|
may be required to vacate the home. |
|
SECTION 76. Section 1201.551, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.551. DENIAL OF LICENSE; DISCIPLINARY |
|
ACTION. (a) The director[, after notice as provided for under
|
|
Section 1201.054 and a hearing as provided by Sections 1201.054 and
|
|
1201.060,] may deny, permanently revoke, or suspend for a definite |
|
period and specified sales location or geographic area a license if |
|
the director determines that the applicant or license holder: |
|
(1) knowingly and wilfully violated this chapter or a |
|
rule adopted or order issued under this chapter; |
|
(2) unlawfully retained or converted money, property, |
|
or any other thing of value from a consumer in the form of a down |
|
payment, sales or use tax, deposit, or insurance premium; |
|
(3) repeatedly failed to file with the department |
|
completed applications [timely provide to a consumer an
|
|
application] for statements [a statement] of ownership and location |
|
in the time and manner required by this chapter [and any information
|
|
necessary to complete the application]; |
|
(4) failed to give or breached a manufactured home |
|
warranty required by this chapter or by the Federal Trade |
|
Commission; |
|
(5) engaged in a false, misleading, or deceptive act |
|
or practice as described by Subchapter E, Chapter 17, Business & |
|
Commerce Code; |
|
(6) failed to provide or file a report required by the |
|
department for the administration or enforcement of this chapter; |
|
(7) provided false information on an application, |
|
report, or other document filed with the department; |
|
(8) acquired a criminal record during the five-year |
|
period preceding the application date that, in the opinion of the |
|
director, makes the applicant unfit for licensing; [or] |
|
(9) failed to file a bond or other security for each |
|
location as required by Subchapter C; or |
|
(10) has had any other license issued by this state |
|
revoked or suspended by this state or a political subdivision or |
|
agency of this state. |
|
(b) The director [department] may suspend or revoke a |
|
license if, after receiving notice of a claim, the license holder or |
|
the license holder's surety fails or refuses to pay a final claim |
|
paid from the trust fund for which a demand for reimbursement is |
|
made [participate in the informal dispute resolution process
|
|
described by Section 1201.407]. |
|
SECTION 77. Section 1201.552, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.552. HEARING CONCERNING LICENSE. The director |
|
may issue an order to revoke, suspend, or deny a new or renewal |
|
license. If not later than the 30th day after the date the order is |
|
issued the person against whom that order is issued requests a |
|
hearing by giving written notice to the director, the director |
|
shall set a hearing to be conducted by the State Office of |
|
Administrative Hearings. If appeal is not timely made, the order |
|
becomes final. The hearing and any related administrative |
|
proceeding is a contested case under Chapter 2001, Government Code. |
|
The board shall issue an order after receiving a proposal for |
|
decision related to the case [shall conduct a hearing involving the
|
|
denial, renewal, revocation, or suspension of a license in
|
|
accordance with Chapter 2001, Government Code]. |
|
SECTION 78. Section 1201.553, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.553. JUDICIAL REVIEW. Judicial review of an |
|
order, decision, or determination of the board or director is |
|
instituted by filing a petition with a district court in Travis |
|
County as provided by Chapter 2001, Government Code. |
|
SECTION 79. Section 1201.605, Occupations Code, is amended |
|
to read as follows: |
|
Sec. 1201.605. ADMINISTRATIVE PENALTY. (a) The director |
|
may assess against a person who fails to comply with [obtain or
|
|
maintain a license as required by] this chapter or the rules adopted |
|
under this chapter, or a final order adopted or issued as provided |
|
by this chapter, an administrative penalty in an amount not to |
|
exceed $10,000 for each violation of this chapter and: |
|
(1) reasonable attorney's fees; |
|
(2) administrative costs; |
|
(3) witness fees; |
|
(4) investigative costs; and |
|
(5) deposition expenses. |
|
(b) The director may assess against a license holder |
|
[retailer] who fails to provide information to a consumer as |
|
required by this chapter an administrative penalty in an amount not |
|
to exceed: |
|
(1) $1,000 for the first violation; |
|
(2) $2,000 for the second violation; and |
|
(3) $4,000 for each subsequent violation. |
|
(c) In determining the amount of an administrative penalty |
|
assessed under this section, the director shall consider: |
|
(1) the seriousness of the violation; |
|
(2) the history of previous violations; |
|
(3) the amount necessary to deter future violations; |
|
(4) efforts made to correct the violation; and |
|
(5) any other matters that justice may require. |
|
(d) If not later than the 30th day after the date the person |
|
receives notice of an administrative penalty the person against |
|
whom the penalty is issued requests a hearing by giving written |
|
notice to the director, the director shall set a hearing to be |
|
conducted by the State Office of Administrative Hearings. If |
|
appeal is not timely made, the administrative penalty becomes |
|
final. The hearing and any related administrative proceeding is a |
|
contested case under Chapter 2001, Government Code. The board shall |
|
issue an order after receiving a proposal for decision related to |
|
the case. |
|
SECTION 80. Subchapter M, Chapter 1201, Occupations Code, |
|
is amended by adding Sections 1201.607 through 1201.611 to read as |
|
follows: |
|
Sec. 1201.607. ISSUANCE OF ORDERS AND REQUESTS FOR |
|
HEARINGS. An order issued by the director under this chapter |
|
automatically becomes a final order if the order is not appealed |
|
before the 30th day after the date the order is issued. If the |
|
person to whom the order is issued files a written request for a |
|
hearing with the director, the order is considered to have been |
|
appealed and is a contested case under Chapter 2001, Government |
|
Code. The director shall set any appealed order for a hearing |
|
before the State Office of Administrative Hearings. The board |
|
shall issue a final order after receiving and reviewing the |
|
proposal for decision related to the case. |
|
Sec. 1201.608. INSPECTION OF LICENSE HOLDER RECORDS. (a) |
|
The department may inspect a license holder's records during normal |
|
business hours without advance notice if the director determines |
|
that an inspection is necessary to: |
|
(1) prevent a violation of this chapter; |
|
(2) protect a consumer or another license holder; or |
|
(3) assist another state or federal agency in an |
|
investigation. |
|
(b) The director may request or issue a subpoena for the |
|
license holder's records. |
|
(c) If the director determines that it is appropriate to |
|
detect and address suspected violations of this chapter, the |
|
department may carry out an undercover investigation in accordance |
|
with board-adopted rules. |
|
(d) While an investigation is pending, information obtained |
|
by the department in connection with that investigation is |
|
confidential unless disclosure of the information is specifically |
|
permitted or required by other law. |
|
Sec. 1201.609. CRIMINAL PENALTY FOR PERFORMING ACTION |
|
WITHOUT PROPER LICENSE. (a) A person who is not required to hold a |
|
license under this chapter commits an offense if the person |
|
performs an act that requires a license under this chapter. |
|
(b) An offense under this section is a Class B misdemeanor. |
|
A subsequent conviction for an offense under this section is |
|
punishable as a Class A misdemeanor. |
|
Sec. 1201.610. CEASE AND DESIST. (a) If the director has |
|
reasonable cause to believe that a person licensed under this |
|
chapter has or intends to violate a provision of this chapter or the |
|
rules adopted under this chapter, to enforce compliance with this |
|
chapter the director may issue to the license holder without notice |
|
and hearing an order to cease and desist from continuing a |
|
particular action or an order to take affirmative action, or both. |
|
(b) The director may issue an order to a license holder to |
|
cease and desist from violating any law, rule, or written agreement |
|
or to take corrective action with respect to the violation if the |
|
license holder in any way is performing an action that relates to |
|
the sale, financing, or installation of a manufactured home or |
|
relates to providing goods or services in connection with the sale, |
|
financing, or installation of a manufactured home, provided that if |
|
the matter involves a law that is subject to administration or |
|
interpretation by a state agency other than the department, the |
|
director shall consult with the person in charge of the day-to-day |
|
administration of that agency before issuing the order. The |
|
director may not issue an order under this subsection with respect |
|
to a matter that is subject to inspection and regulation by a state |
|
agency other than the department. |
|
(c) An order issued under Subsection (a) or (b) must contain |
|
a reasonably detailed statement of the facts on which the order is |
|
made. If a person against whom the order is issued requests a |
|
hearing, the director shall set and give notice of a hearing. The |
|
hearing is governed by Chapter 2001, Government Code. Based on the |
|
findings of fact, conclusions of law, and recommendations of the |
|
hearings officer, the board by order may find that a violation has |
|
or has not occurred. |
|
(d) If a hearing is not requested under Subsection (c) |
|
before the 30th day after the date on which an order is issued, the |
|
order is considered final and not appealable. |
|
(e) The director, after giving notice, may impose against a |
|
person who violates a cease and desist order an administrative |
|
penalty in an amount not to exceed $1,000 for each day of the |
|
violation. In addition to any other remedy provided by law, the |
|
director may institute in district court a suit for injunctive |
|
relief and for the collection of the administrative penalty. A bond |
|
is not required of the director with respect to injunctive relief |
|
granted under this subsection. |
|
(f) If a person fails to pay an administrative penalty that |
|
has become final or fails to comply with an order of the director |
|
that has become final, in addition to any other remedy provided |
|
under law, the director, after the expiration of the 10-day period |
|
following the date the director provides notice to the person, may, |
|
without a prior hearing, suspend the person's license. The |
|
suspension continues until the person has complied with the cease |
|
and desist order or paid the administrative penalty. During the |
|
period of suspension: |
|
(1) the person whose license has been suspended may |
|
not perform an act that requires a license under this chapter; and |
|
(2) all compensation received by the person during the |
|
period of suspension is subject to forfeiture to the person from |
|
whom the compensation was received. |
|
(g) An order of suspension under Subsection (f) may be |
|
appealed. An appeal is a contested case governed by Chapter 2001, |
|
Government Code. A hearing of an appeal of an order of suspension |
|
issued under Subsection (f) must be held not later than the 15th day |
|
after the date of receipt of the notice of appeal. The appellant |
|
shall be provided notice of the time and place of the hearing not |
|
later than the third day before the hearing is scheduled to occur. |
|
(h) An order revoking the license of a retailer, broker, |
|
installer, or salesperson may prohibit the person from being a |
|
related person of a license holder unless the person obtains the |
|
prior written consent of the director. |
|
Sec. 1201.611. SANCTIONS AND PENALTIES. (a) The board |
|
shall adopt rules relating to the administrative sanctions. |
|
(b) If the person charged with a violation accepts the |
|
director's determination with respect to an administrative |
|
penalty, the director shall issue an order approving the |
|
determination and ordering the person to pay the recommended |
|
penalty. |
|
(c) Not later than the 30th day after the date on which the |
|
director's determination becomes final, the person charged shall: |
|
(1) pay the penalty in full; or |
|
(2) if the person files a petition for judicial review |
|
contesting the facts of the violation, the amount of the penalty, or |
|
both the facts of the violation and the amount of the penalty: |
|
(A) forward the amount assessed to the department |
|
for deposit in an escrow account; |
|
(B) in lieu of payment into escrow, post with the |
|
department a supersedeas bond for the amount of the penalty, in a |
|
form approved by the director and effective until judicial review |
|
of the decision is final; or |
|
(C) without paying the amount of the penalty or |
|
posting the supersedeas bond, pursue judicial review. |
|
(d) A person charged with a penalty who is financially |
|
unable to comply with Subsection (c) is entitled to judicial review |
|
if the person files with the court, as part of the person's petition |
|
for judicial review, a sworn statement that the person is unable to |
|
meet the requirements of that subsection. |
|
(e) If the person charged does not pay the penalty and does |
|
not pursue judicial review, the department or the attorney general |
|
may bring an action for the collection of the penalty. |
|
(f) Judicial review of the director's order assessing the |
|
penalty is subject to the substantial evidence rule. |
|
(g) If, after judicial review, the penalty is reduced or not |
|
assessed, the director as applicable shall remit to the person |
|
charged the appropriate amount, including accrued interest if the |
|
penalty has been paid, or shall execute a release of any supersedeas |
|
bond that was posted. The accrued interest on amounts remitted by |
|
the director under this subsection shall be paid at a rate equal to |
|
the rate charged on loans to depository institutions by the New York |
|
Federal Reserve Bank, and shall be paid for the period beginning on |
|
the date that the assessed penalty is paid to the director and |
|
ending on the date the penalty is remitted. |
|
(h) A penalty collected under this section shall be |
|
deposited in the trust fund. |
|
(i) All proceedings conducted under this section and any |
|
review or appeal of those proceedings are subject to Chapter 2001, |
|
Government Code. |
|
(j) If it appears that a person is in violation of, or is |
|
threatening to violate, any provision of this chapter or a rule or |
|
order related to the administration and enforcement of the |
|
manufactured housing program, the attorney general, on behalf of |
|
the division director, may institute an action for injunctive |
|
relief to restrain the person from continuing the violation and for |
|
a civil penalty of not more than $1,000 for each violation and of |
|
not more than $250,000 in the aggregate. A civil action filed under |
|
this subsection must be filed in a district court in Travis County. |
|
The attorney general and the director may recover reasonable |
|
expenses incurred in obtaining injunctive relief under this |
|
subsection, including court costs, reasonable attorney's fees, |
|
investigative costs, witness fees, and deposition expenses. |
|
SECTION 81. Section 2306.0724, Government Code, is amended |
|
by amending Subsection (d) and adding Subsection (e) to read as |
|
follows: |
|
(d) A housing sponsor who fails to file a report in a timely |
|
manner is subject to the following sanctions, as determined by the |
|
department: |
|
(1) denial of a request for additional funding; or |
|
(2) an administrative penalty in an amount not to |
|
exceed $1,000, assessed in the manner provided for an |
|
administrative penalty under Subsection (e) [Section 2306.6023]. |
|
(e) In determining the amount of an administrative penalty |
|
assessed under this section, the department shall consider: |
|
(1) the seriousness of the violation; |
|
(2) the history of previous violations; |
|
(3) the amount necessary to deter future violations; |
|
(4) efforts made to correct the violation; and |
|
(5) any other matters that justice may require. |
|
SECTION 82. Section 2306.186, Government Code, is amended |
|
by amending Subsection (k) and adding Subsection (m) to read as |
|
follows: |
|
(k) The department shall assess an administrative penalty |
|
on development owners who fail to contract for the third-party |
|
physical needs assessment and make the identified repairs as |
|
required by this section. The department may assess the |
|
administrative penalty in the same manner as an administrative |
|
penalty assessed under Subsection (m) [Section 2306.6023]. The |
|
penalty is computed by multiplying $200 by the number of dwelling |
|
units in the development and must be paid to the department. The |
|
office of the attorney general shall assist the department in the |
|
collection of the penalty and the enforcement of this subsection. |
|
(m) In determining the amount of an administrative penalty |
|
assessed under this section, the department shall consider: |
|
(1) the seriousness of the violation; |
|
(2) the history of previous violations; |
|
(3) the amount necessary to deter future violations; |
|
(4) efforts made to correct the violation; and |
|
(5) any other matters that justice may require. |
|
SECTION 83. Section 2306.6022(b), Government Code, is |
|
amended to read as follows: |
|
(b) The division shall make available on its Internet |
|
website [provide to the person filing the complaint and to each
|
|
person who is a subject of the complaint a copy of] the division's |
|
policies and procedures relating to complaint investigation and |
|
resolution and provide a hard copy of that information to those |
|
persons on request by those persons. |
|
SECTION 84. Section 11.432, Tax Code, is amended by |
|
amending Subsection (a) and adding Subsection (b-1) to read as |
|
follows: |
|
(a) For a manufactured home to qualify for an exemption |
|
under Section 11.13 of this code, the application for the exemption |
|
must be accompanied by: |
|
(1) a copy of the statement of ownership and location |
|
for the manufactured home issued by the manufactured housing |
|
division of the Texas Department of Housing and Community Affairs |
|
under Section 1201.207, Occupations Code, showing that the |
|
individual applying for the exemption is the owner of the |
|
manufactured home; |
|
(2) [or be accompanied by] a verified copy of the |
|
purchase contract showing that the applicant is the purchaser of |
|
the manufactured home; |
|
(3) a photostatic copy of the current title page for |
|
the manufactured home as that page is displayed on the Internet |
|
website of the Texas Department of Housing and Community Affairs; |
|
or |
|
(4) the applicable computer records of the Texas |
|
Department of Housing and Community Affairs. |
|
(b-1) The consumer is entitled to obtain the homestead |
|
exemptions provided by Section 11.13 regardless of whether: |
|
(1) an owner has elected to treat the manufactured |
|
home as real property or personal property; or |
|
(2) the home is listed on the tax rolls together with |
|
the real property to which it is attached or is listed separately |
|
from that property. |
|
SECTION 85. Section 31.072, Tax Code, is amended by adding |
|
Subsection (i) to read as follows: |
|
(i) Notwithstanding Subsection (a), if the escrow account |
|
will be used solely to provide for the payment of property taxes |
|
collected on the property owner's manufactured home, the collector |
|
shall enter into a contract under this section with a property owner |
|
who: |
|
(1) owns the manufactured home; and |
|
(2) requests the establishment of the escrow account. |
|
SECTION 86. Section 32.03, Tax Code, is amended by amending |
|
Subsections (a-1), (a-2), and (b) and adding Subsections (b-1), |
|
(b-2), and (b-3) to read as follows: |
|
(a-1) With regard to a manufactured home, a tax lien may be |
|
recorded at any time not later than the expiration of the six-month |
|
period following the end of the calendar year for which the tax was |
|
owed. The tax lien may be enforced if it has been recorded in |
|
accordance with the laws in effect at the time of the recordation of |
|
the lien. A properly recorded tax lien may not be enforced against |
|
the owner of a new manufactured home who acquired the manufactured |
|
home from a retailer as a buyer in the ordinary course of business |
|
[A tax lien against a manufactured home may not be enforced unless
|
|
it has been recorded with the Texas Department of Housing and
|
|
Community Affairs as provided by Section 1201.219, Occupations
|
|
Code:
|
|
[(1)before October 1, 2005; or
|
|
[(2) not later than six months after the end of the
|
|
year for which the tax was owed]. |
|
(a-2) A person may not transfer title of a manufactured home |
|
until all tax liens perfected on the home have been filed in a |
|
timely manner with the Texas Department of Housing and Community |
|
Affairs and until all personal property taxes on the manufactured |
|
home that accrued on each January 1 within 18 months of the date of |
|
the sale are extinguished or satisfied and released. This |
|
subsection does not apply to the sale of a manufactured home in |
|
inventory. |
|
(b) A bona fide purchaser for value or the holder of a lien |
|
recorded on the manufactured home statement of ownership and |
|
location is not required to pay any taxes that have not been |
|
recorded with the Texas Department of Housing and Community |
|
Affairs. In this section, "manufactured home" has the meaning |
|
assigned by Section 32.015(b). Unless a tax lien has been filed in |
|
a timely manner with the Texas Department of Housing and Community |
|
Affairs, a taxing unit or an agent of the taxing unit may not use a |
|
tax warrant or any other method to attempt to execute or foreclose |
|
on the manufactured home as a result of the unfiled tax lien. |
|
(b-1) A taxpayer is entitled to designate in writing which |
|
tax year will be credited with a particular payment. If a taxpayer |
|
pays all the amounts owing for a given year, the taxing unit shall |
|
issue a receipt for the payment of the taxes for the designated |
|
year. |
|
(b-2) Notwithstanding any other provision of law, if a |
|
manufactured home was omitted from the tax roll at any time before |
|
the second anniversary of the date on which taxes are due, the |
|
taxing unit may file a tax lien not later than the 150th day after |
|
the date on which the tax becomes delinquent. |
|
(b-3) If personal property taxes on a manufactured home have |
|
not been levied by the taxing unit, the taxing unit shall provide |
|
the prospective buyer of the manufactured home with an estimated |
|
amount of taxes computed by multiplying the taxable value of the |
|
manufactured home, according to the most recent certified appraisal |
|
roll for the taxing unit, by the taxing unit's adopted tax rate for |
|
the preceding tax year. To enable the transfer of the manufactured |
|
home, the tax collector shall accept the payment of the estimated |
|
personal property taxes and issue a certification to the Texas |
|
Department of Housing and Community Affairs that the estimated |
|
taxes are being held in escrow until the taxes are levied. Once the |
|
taxes are levied, the tax collector shall apply the escrowed |
|
amounts to the levied taxes. At the time that the tax collector |
|
accepts the payment of the taxes, the tax collector shall notify the |
|
taxpayer that the payment of the estimated taxes is an estimate that |
|
may increase once the appraisal rolls for the year are certified. |
|
The tax collector shall notify the new owner that the new owner of |
|
the manufactured home may be liable for the payment of any |
|
difference between the tax established by the certified appraisal |
|
roll and the estimate actually paid. |
|
SECTION 87. The following provisions are repealed: |
|
(1) Section 1201.054(c), Occupations Code; |
|
(2) Section 1201.059, Occupations Code; |
|
(3) Section 1201.112, Occupations Code; |
|
(4) Section 1201.163, Occupations Code; |
|
(5) Sections 1201.214(c) and (d), Occupations Code; |
|
(6) Section 1201.408, Occupations Code; and |
|
(7) Section 2306.6023, Government Code. |
|
SECTION 88. The changes in law made by this Act to |
|
provisions of the Tax Code apply only to an ad valorem tax year that |
|
begins on or after January 1, 2008. The changes in law made to those |
|
provisions do not affect a tax lien that attached to property for a |
|
tax year that began before January 1, 2008, and the law in effect |
|
immediately before January 1, 2008, is continued in effect for |
|
purposes of the tax lien. |
|
SECTION 89. This Act takes effect September 1, 2007. |