82R9607 JAM-D
 
  By: J. Davis of Harris H.B. No. 2916
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of certain housing and energy
  assistance programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  TRANSFER OF CERTAIN FUNCTIONS
  FROM TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TO TEXAS
  STATE AFFORDABLE HOUSING CORPORATION
         SECTION 1.01.  Section 1372.0221, Government Code, is
  amended to read as follows:
         Sec. 1372.0221.  DEDICATION OF PORTION OF STATE CEILING FOR
  PROFESSIONAL EDUCATORS HOME LOAN PROGRAM. Until August 7, out of
  that portion of the state ceiling that is available exclusively for
  reservations by the Texas State Affordable Housing Corporation
  under Section 1372.0223, 20 [54.5] percent shall be allotted each
  year and made available to the corporation for the purpose of
  issuing qualified mortgage bonds in connection with the
  professional educators home loan program established under Section
  2306.562.
         SECTION 1.02.  Section 1372.0222, Government Code, is
  amended to read as follows:
         Sec. 1372.0222.  DEDICATION OF PORTION OF STATE CEILING FOR
  FIRE FIGHTER, LAW ENFORCEMENT OR SECURITY OFFICER, AND EMERGENCY
  MEDICAL SERVICES PERSONNEL HOME LOAN PROGRAM. Until August 7, out
  of that portion of the state ceiling that is available exclusively
  for reservations by the Texas State Affordable Housing Corporation
  under Section 1372.0223, 10 [45.5] percent shall be allotted each
  year and made available to the corporation for the purpose of
  issuing qualified mortgage bonds in connection with the fire
  fighter, law enforcement or security officer, and emergency medical
  services personnel home loan program established under Section
  2306.5621.
         SECTION 1.03.  Subchapter B, Chapter 1372, Government Code,
  is amended by adding Section 1372.02221 to read as follows:
         Sec. 1372.02221.  DEDICATION OF PORTION OF STATE CEILING FOR
  PROGRAMS ADMINISTERED BY TEXAS STATE AFFORDABLE HOUSING
  CORPORATION. Until August 7, out of that portion of the state
  ceiling that is available exclusively for reservations by the Texas
  State Affordable Housing Corporation under Section 1372.0223, 70
  percent shall be allotted each year and made available to the
  corporation for the purpose of issuing qualified mortgage bonds in
  connection with the programs established under Sections 2306.562
  and 2306.5621 or any other home loan program administered by the
  corporation.
         SECTION 1.04.  Section 1372.0223, Government Code, is
  amended to read as follows:
         Sec. 1372.0223.  DEDICATION OF PORTION OF STATE CEILING TO
  [CERTAIN] ISSUERS OF QUALIFIED MORTGAGE BONDS. Until August 7, out
  of that portion of the state ceiling that is available exclusively
  for reservations by issuers of qualified mortgage bonds under
  Section 1372.022:
               (1)  40 [10] percent is available exclusively to the
  Texas State Affordable Housing Corporation for the purpose of
  issuing qualified mortgage bonds; and
               (2)  60 [56.66] percent is available exclusively to
  housing finance corporations for the purpose of issuing qualified
  mortgage bonds.
         SECTION 1.05.  Sections 1372.0231(a), (b-1), (c), (d), (g),
  and (i), Government Code, are amended to read as follows:
         (a)  Until August 15, of that portion of the state ceiling
  that is available exclusively for reservations by issuers of
  qualified residential rental project bonds:
               (1)  80 [20 percent is available exclusively to the
  Texas Department of Housing and Community Affairs in the manner
  described by Subsection (b);
               [(2)  70] percent is available exclusively to housing
  finance corporations in the manner described by Subsections
  (c)-(f); and
               (2)  20 [(3)  10] percent is available exclusively to
  the Texas State Affordable Housing Corporation in the manner
  described by Subsection (b-1).
         (b-1)  With respect to the amount of the state ceiling set
  aside under Subsection (a)(2) [(a)(3)], the board shall issue
  qualified residential rental project bonds and allocate bond funds
  at the direction of the Texas State Affordable Housing Corporation
  as provided by Section 2306.565. Issuances made by the board under
  this subsection are subject to review and approval by the board
  under Section 1231.041.
         (c)  With respect to the amount of the state ceiling set
  aside under Subsection (a)(1) [(a)(2)], the board shall grant
  reservations in a manner that ensures that not more than 50 percent
  of the set-aside amount is used for proposed projects that are
  located in qualified census tracts as defined by the most recent
  publication by the United States Department of Housing and Urban
  Development.
         (d)  Except as provided by Subsection (i), before May 1, the
  board shall apportion the amount of the state ceiling set aside
  under Subsection (a)(1) [(a)(2)] among the uniform state service
  regions according to the percentage of the state's population that
  resides in each of those regions.
         (g)  On or after May 1, the board may not grant available
  reservations to housing finance corporations described by
  Subsection (a)(1) [(a)] based on uniform state service regions or
  any segments of those regions.
         (i)  Before May 1, the board shall apportion the amount of
  the state ceiling set aside under Subsection (a)(1) [(a)(2)] only
  among uniform state service regions with respect to which an issuer
  has submitted an application for a reservation of the state ceiling
  on or before March 1.
         SECTION 1.06.  Section 1372.025(b), Government Code, is
  amended to read as follows:
         (b)  Subsection (a) does not apply to qualified mortgage
  bonds or qualified residential rental project bonds made available
  exclusively to [the Texas Department of Housing and Community
  Affairs under Section 1372.023 or] the Texas State Affordable
  Housing Corporation under Sections 1372.0221, [and] 1372.0222, and
  1372.02221.
         SECTION 1.07.  Section 1372.028(d), Government Code, is
  amended to read as follows:
         (d)  An issuer is not required to provide the statement
  required by Subsection (c)(3)(F) if the issuer:
               (1)  is an issuer of a state-voted issue;
               (2)  is the [Texas Department of Housing and Community
  Affairs or the] Texas State Affordable Housing Corporation; or
               (3)  provides evidence that one or more binding
  contracts have been entered into, or other evidence acceptable to
  the board as described by program rule, to spend the unexpended
  proceeds by the later of:
                     (A)  12 months after the date the board receives
  the application; or
                     (B)  December 31 of the program year for which the
  application is filed.
         SECTION 1.08.  Section 1372.037(a), Government Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (b), before August 15
  the board may not grant for any single project a reservation for
  that year that is greater than:
               (1)  $40 million, if the issuer is an issuer of
  qualified mortgage bonds, other than the [Texas Department of
  Housing and Community Affairs or the] Texas State Affordable
  Housing Corporation;
               (2)  $50 million, if the issuer is an issuer of a
  state-voted issue, other than the Texas Higher Education
  Coordinating Board, or $75 million, if the issuer is the Texas
  Higher Education Coordinating Board;
               (3)  the amount to which the Internal Revenue Code
  limits issuers of qualified small issue bonds and enterprise zone
  facility bonds, if the issuer is an issuer of those bonds;
               (4)  the lesser of $20 million or 15 percent of the
  amount set aside for reservation by issuers of qualified
  residential rental project bonds, if the issuer is an issuer of
  those bonds;
               (5)  the amount as prescribed in Sections 1372.033(d),
  (e), and (f), if the issuer is an issuer authorized by Section
  53B.47, Education Code, to issue qualified student loan bonds; or
               (6)  $50 million, if the issuer is any other issuer of
  bonds that require an allocation.
         SECTION 1.09.  Section 1372.040, Government Code, is amended
  to read as follows:
         Sec. 1372.040.  RESERVATION BY CERTAIN ISSUERS OF QUALIFIED
  MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS. An
  issuer of qualified mortgage bonds, other than the [Texas
  Department of Housing and Community Affairs or the] Texas State
  Affordable Housing Corporation, shall reserve for six months 50
  percent of the funds available for loans outside the federally
  designated target areas to provide mortgages to individuals and
  families with incomes below 80 percent of the applicable median
  family income, as defined by Section 143(f)(4), Internal Revenue
  Code (26 U.S.C. Section 143(f)(4)).
         SECTION 1.10.  Section 2306.1076(b), Government Code, is
  amended to read as follows:
         (b)  The [In addition to funds set aside for the program
  under Section 1372.023, the] department may solicit and accept
  funding for the program from gifts and grants for the purposes of
  this section.
         SECTION 1.11.  Section 2306.253, Government Code, is
  transferred to Subchapter Y, Chapter 2306, Government Code,
  redesignated as Section 2306.570, Government Code, and amended to
  read as follows:
         Sec. 2306.570  [2306.253].  HOMEBUYER EDUCATION PROGRAM.
  (a) The corporation [department] shall develop and implement a
  statewide homebuyer education program designed to provide
  information and counseling to prospective homebuyers about the home
  buying process.
         (b)  The corporation [department] shall develop the program
  in cooperation with the Texas AgriLife [Agricultural] Extension
  Service, the Health and [Texas Department of] Human Services
  Commission, the Real Estate [Research] Center at Texas A&M
  University, the Texas Workforce Commission, experienced homebuyer
  education providers, community-based organizations, and advocates
  of affordable housing. When feasible, the corporation [The
  department] shall implement the program through the self-help
  centers established under Subchapter Z [when feasible].
         (c)  The corporation [department] shall make full use of
  existing training and informational materials available from
  sources such as the United States Department of Housing and Urban
  Development, the cooperative extension system, the Neighborhood
  Reinvestment Corporation, and existing homebuyer education
  providers.
         (d)  In order to implement this section, the corporation
  [department] may use money available to the corporation 
  [department] for housing purposes that the corporation
  [department] is not prohibited from spending on the homebuyer
  education program, including:
               (1)  the amount of administrative or service fees the
  corporation [department] receives from the issuance or refunding of
  bonds that exceeds the amount the corporation [department] needs to
  pay its overhead costs in administering its bond programs; and
               (2)  money the corporation [department] receives from
  other entities by gift or grant under a contract.
         SECTION 1.12.  The heading to Section 2306.565, Government
  Code, is amended to read as follows:
         Sec. 2306.565.  ISSUANCE OF QUALIFIED RESIDENTIAL RENTAL
  PROJECT BONDS; ALLOCATION OF BOND FUNDS; COMPLIANCE MONITORING.
         SECTION 1.13.  Section 2306.565, Government Code, is amended
  by adding Subsection (k) to read as follows:
         (k)  The corporation shall perform compliance monitoring and
  physical inspections to ensure that recipients of money funded by
  bonds issued by the corporation or the department under Section
  1372.0231(a) comply with all legal and contractual requirements for
  receiving that money, except that the department shall continue to
  perform compliance monitoring and physical inspections in relation
  to contracts maintained under department programs that are
  otherwise funded using federal money.
         SECTION 1.14.  The following provisions of the Government
  Code are repealed:
               (1)  Section 1372.023;
               (2)  Section 1372.0231(b), as amended by Chapters 330
  (S.B. 264) and 1329 (S.B. 1664), Acts of the 78th Legislature,
  Regular Session, 2003; and
               (3)  Section 1372.0231(h).
         SECTION 1.15.  The change in law made by this article in
  amending Chapter 1372, Government Code, applies only to a
  reservation of state ceiling granted on or after January 1, 2012.
  ARTICLE 2.  TRANSFER OF ENERGY ASSISTANCE PROGRAMS FROM TEXAS
  DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TO PUBLIC UTILITY
  COMMISSION OF TEXAS
         SECTION 2.01.  Section 2305.036(c), Government Code, is
  amended to read as follows:
         (c)  Projects funded under this program may include:
               (1)  projects to demonstrate commercially available
  cost-effective energy-saving techniques and technologies;
               (2)  training and technical assistance in
  energy-efficient construction, design, or remodeling;
               (3)  projects to provide energy education workshops or
  seminars for consumers;
               (4)  financing for energy designs and improvements,
  energy-efficient appliances, and energy management systems; and
               (5)  funding of a weatherization assistance program
  through the Public Utility Commission of Texas [Texas Department Of
  Housing and Community Affairs] to benefit individuals of low
  income.
         SECTION 2.02.  Section 2306.097, Government Code, is
  transferred to Subchapter B, Chapter 16, Utilities Code,
  redesignated as Section 16.022, Utilities Code, and amended to read
  as follows:
         Sec. 16.022  [2306.097].  STATE LOW-INCOME ENERGY
  ASSISTANCE PROGRAM [ENERGY SERVICES PROGRAM FOR LOW-INCOME
  INDIVIDUALS]. (a) The commission [The Energy Services Program for
  Low-Income Individuals shall operate in conjunction with the
  community services block grant program and] has jurisdiction and
  responsibility for administration of the following elements of the
  State Low-Income Energy Assistance Program, from whatever sources
  funded:
               (1)  the Energy Crisis Intervention Program;
               (2)  the weatherization program; and
               (3)  the Low-Income Home Energy Assistance Program.
         (b)  Applications, forms, and educational materials for a
  program administered under Subsection (a)(1), (2), or (3) must be
  provided in English, Spanish, and any other appropriate language.
         SECTION 2.03.  Section 2306.187(e), Government Code, is
  amended to read as follows:
         (e)  Subsections (a) and (b) do not apply to a single or
  multifamily dwelling that receives weatherization assistance money
  from the Public Utility Commission of Texas [department] or money
  provided under the first-time homebuyer program.
         SECTION 2.04.  Section 39.903(f), Utilities Code, is amended
  to read as follows:
         (f)  Notwithstanding Section 39.106(b), the commission shall
  adopt rules regarding programs to assist low-income electric
  customers on the introduction of customer choice. The programs may
  not be targeted to areas served by municipally owned utilities or
  electric cooperatives that have not adopted customer choice. The
  programs shall include:
               (1)  reduced electric rates as provided by Subsections
  (h)-(l); and
               (2)  targeted energy efficiency programs to be
  administered [by the Texas Department of Housing and Community
  Affairs] in coordination with existing weatherization programs.
         SECTION 2.05.  (a) As soon as practicable after the
  effective date of this Act, the Texas Department of Housing and
  Community Affairs and the Public Utility Commission of Texas shall
  develop a transition plan for transferring the functions performed
  by the department under Section 2306.097, Government Code, to the
  commission.  The transition plan must include a timetable with
  specific steps and deadlines needed to complete the transfer.
         (b)  In accordance with the transition plan developed by the
  Texas Department of Housing and Community Affairs and the Public
  Utility Commission of Texas under Subsection (a) of this section,
  on November 1, 2011:
               (1)  all functions and activities relating to Section
  2306.097, Government Code, performed by the Texas Department of
  Housing and Community Affairs immediately before that date are
  transferred to the Public Utility Commission of Texas;
               (2)  a rule or form adopted by the executive director of
  the Texas Department of Housing and Community Affairs that relates
  to Section 2306.097, Government Code, is a rule or form of the
  Public Utility Commission of Texas and remains in effect until
  amended or replaced by the commission;
               (3)  a reference in law to or an administrative rule of
  the Texas Department of Housing and Community Affairs that relates
  to Section 2306.097, Government Code, means the Public Utility
  Commission of Texas;
               (4)  a complaint, investigation, or other proceeding
  before the Texas Department of Housing and Community Affairs that
  is related to Section 2306.097, Government Code, is transferred
  without change in status to the Public Utility Commission of Texas,
  and the commission assumes, as appropriate and without a change in
  status, the position of the department in an action or proceeding to
  which the department is a party;
               (5)  any employee of the Texas Department of Housing
  and Community Affairs who is primarily involved in administering
  Section 2306.097, Government Code, becomes an employee of the
  Public Utility Commission of Texas;
               (6)  all money, contracts, leases, property, and
  obligations of the Texas Department of Housing and Community
  Affairs related to Section 2306.097, Government Code, are
  transferred to the Public Utility Commission of Texas;
               (7)  all property in the custody of the Texas
  Department of Housing and Community Affairs related to Section
  2306.097, Government Code, is transferred to the Public Utility
  Commission of Texas; and
               (8)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the Texas Department of
  Housing and Community Affairs related to Section 2306.097,
  Government Code, is transferred to the Public Utility Commission of
  Texas.
         (c)  Before November 1, 2011, the Texas Department of Housing
  and Community Affairs may agree with the Public Utility Commission
  of Texas to transfer any property of the department to the
  commission to implement the transfer required by this article.
         (d)  In the period beginning September 1, 2011, and ending on
  November 1, 2011, the Texas Department of Housing and Community
  Affairs shall continue to perform functions and activities under
  Section 2306.097, Government Code, as if that section had not been
  transferred, redesignated, and amended by this article, and the
  former law is continued in effect for that purpose.
  ARTICLE 3.  REGULATION OF MANUFACTURED HOUSING
         SECTION 3.01.  Section 2306.0521, Government Code, is
  amended to read as follows:
         Sec. 2306.0521.  ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
  [(a)] Notwithstanding [Section 2306.021(b) or] any other provision
  of this chapter, the director, with the approval of the board, may:
               (1)  create divisions [in addition to those listed in
  Section 2306.021(b)] and assign to the newly created divisions any
  duties and powers imposed on or granted to an existing division or
  the department generally;
               (2)  eliminate any division [listed in Section
  2306.021(b) or] created under this section and assign any duties or
  powers previously assigned to the eliminated division to another
  division [listed in Section 2306.021(b) or] created under this
  section; or
               (3)  eliminate all divisions [listed in Section
  2306.021(b) or] created under this section and reorganize the
  distribution of powers and duties granted to or imposed on a
  division in any manner the director determines appropriate for the
  proper administration of the department.
         [(b)     This section does not apply to the manufactured housing
  division.]
         SECTION 3.02.  Section 2306.591(a), Government Code, is
  amended to read as follows:
         (a)  For a manufactured home to be approved for installation
  and use as a dwelling in a colonia:
               (1)  the home must be a HUD-code manufactured home, as
  defined by Section 1201.003, Occupations Code;
               (2)  the home must be habitable, as described by
  Section 1201.453, Occupations Code; and
               (3)  ownership of the home must be properly recorded
  with the Texas Department of Licensing and Regulation [manufactured
  housing division of the department].
         SECTION 3.03.  Section 1201.003, Occupations Code, is
  amended by adding Subdivision (7-a) and amending Subdivisions (10)
  and (11) to read as follows:
               (7-a)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (10)  "Department" means the Texas Department of
  Licensing and Regulation [Housing and Community Affairs operating
  through its manufactured housing division].
               (11)  "Director" means the executive director of the
  department [manufactured housing division of the Texas Department
  of Housing and Community Affairs].
         SECTION 3.04.  Section 1201.053(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission [board] shall adopt rules and otherwise
  act as necessary to:
               (1)  comply with the National Manufactured Housing
  Construction and Safety Standards Act of 1974 (42 U.S.C. Section
  5401 et seq.), including adopting and enforcing rules reasonably
  required to implement the notification and correction procedures
  provided by 42 U.S.C. Section 5414; and
               (2)  provide for the effective enforcement of all
  HUD-code manufactured housing construction and safety standards in
  order to have the state plan authorized by the National
  Manufactured Housing Construction and Safety Standards Act of 1974
  (42 U.S.C. Section 5401 et seq.) approved by the secretary of
  housing and urban development.
         SECTION 3.05.  Sections 1201.054(b) and (c), Occupations
  Code, are amended to read as follows:
         (b)  If requested, the commission [board] shall, after at
  least 10 days' notice, hold a hearing on any rule that it proposes
  to adopt, other than a rule that is to be adopted under emergency
  rulemaking, in which case only the requirements of Chapter 2001,
  Government Code, shall apply.
         (c)   A rule takes effect on the 30th day after the date of
  publication of notice that the rule has been adopted, except that a
  rule relating to installation standards may not take effect earlier
  than the 60th day after the date of publication of notice unless the
  commission [board] has determined that an earlier effective date is
  required to meet an emergency and the standard was adopted under the
  emergency rulemaking provisions of Chapter 2001, Government Code.
         SECTION 3.06.  Sections 1201.055(a), (c), and (d),
  Occupations Code, are amended to read as follows:
         (a)  With guidance from the federal Housing and Community
  Development Act of 1974 (42 U.S.C. Section 5301 et seq.) and from
  the rules and regulations adopted under the National Manufactured
  Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
  Section 5401 et seq.), the commission [board] shall establish fees
  as follows:
               (1)  if the department acts as a design approval
  primary inspection agency, a schedule of fees for the review of
  HUD-code manufactured home blueprints and supporting information,
  to be paid by the manufacturer seeking approval of the blueprints
  and supporting information;
               (2)  except as provided by Subsection (e), a fee for the
  inspection of each HUD-code manufactured home manufactured or
  assembled in this state, to be paid by the manufacturer of the home;
               (3)  a fee for the inspection of an alteration made to
  the structure or plumbing, heating, or electrical system of a
  HUD-code manufactured home, to be charged on an hourly basis and to
  be paid by the person making the alteration;
               (4)  a fee for the inspection of the rebuilding of a
  salvaged manufactured home, to be paid by the rebuilder;
               (5)  a fee for the inspection of a used manufactured
  home to determine whether the home is habitable for the issuance of
  a new statement of ownership and location; and
               (6)  a fee for the issuance of a seal for a used mobile
  or HUD-code manufactured home.
         (c)  The commission [board] shall establish a fee for the
  inspection of the installation of a mobile or HUD-code manufactured
  home, to be paid by the installer of the home.
         (d)  The commission [board] shall charge a fee for a consumer
  complaint home inspection requested by a manufacturer or retailer
  under Section 1201.355(b), to be paid by the manufacturer or
  retailer.
         SECTION 3.07.  Section 1201.056, Occupations Code, is
  amended to read as follows:
         Sec. 1201.056.  LICENSE FEES. The commission [board] shall
  establish fees for the issuance and renewal of licenses for:
               (1)  manufacturers;
               (2)  retailers;
               (3)  brokers;
               (4)  salespersons;
               (5)  rebuilders; and
               (6)  installers.
         SECTION 3.08.  Section 1201.057, Occupations Code, is
  amended to read as follows:
         Sec. 1201.057.  INSTRUCTION FEE. The commission [board]
  shall charge a fee to each person attending a course of instruction
  described by Section 1201.104.
         SECTION 3.09.  Sections 1201.058(a), (d), and (e),
  Occupations Code, are amended to read as follows:
         (a)  The commission [board] shall establish reasonable fees
  for all matters under this chapter providing for fees.  If the
  department's rules provide an option to file a document
  electronically, the department may charge a discounted fee for the
  electronic filing.
         (d)  Notwithstanding Subsection (c), the director may, in
  limited and appropriate circumstances and in accordance with rules
  adopted by the commission [board], approve the refund of fees.
         (e)  If the governor by executive order or proclamation
  declares a state of disaster under Chapter 418, Government Code,
  the director, in accordance with rules adopted by the commission 
  [board], may waive the imposition of any fee under this chapter in
  the affected area.
         SECTION 3.10.  Sections 1201.104(e) and (f), Occupations
  Code, are amended to read as follows:
         (e)  The commission [board] shall adopt rules relating to
  course content and approval.
         (f)  An applicant for an initial installer's license shall
  receive a license on a provisional basis. The person's provisional
  status remains in effect until a sufficient number of installations
  completed by the person have been inspected by the department and
  found not to have any identified material violations of the
  department's rules. The commission [board], with the advice of the
  advisory committee to be established under Section 1201.251, shall
  adopt rules to establish what constitutes a sufficient number of
  installations under this subsection.
         SECTION 3.11.  Section 1201.105(c), Occupations Code, is
  amended to read as follows:
         (c)  If the department experiences significant problems in
  obtaining timely reimbursements from a surety or the surety has
  experienced a deterioration in its financial condition, the
  commission [board] may direct the director to stop accepting bonds
  issued by the surety.
         SECTION 3.12.  Section 1201.113(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission [board] shall approve or administer
  continuing education programs for licensees under this chapter.  A
  continuing education program must be at least eight hours long and
  must include the current rules of the department and such other
  matters as the commission [board] may deem relevant.
         SECTION 3.13.  Section 1201.118, Occupations Code, is
  amended to read as follows:
         Sec. 1201.118.  RULES RELATING TO CERTAIN PERSONS. The
  commission [board] shall adopt rules providing for additional
  review and scrutiny of any application for an initial or renewal
  license that involves a person who has previously:
               (1)  been found in a final order to have participated in
  one or more violations of this chapter that served as grounds for
  the suspension or revocation of a license;
               (2)  been found to have engaged in activity subject to
  this chapter without possessing the required license;
               (3)  caused the trust fund to incur unreimbursed
  payments or claims; or
               (4)  failed to abide by the terms of a final order,
  including the payment of any assessed administrative penalties.
         SECTION 3.14.  Section 1201.1521(b), Occupations Code, is
  amended to read as follows:
         (b)  Subject to rules adopted by the commission [board], a
  consumer may waive a right of rescission in the event of a bona fide
  emergency.  Such rules shall, to the extent practical, be modeled
  on the federal rules for the waiver of a right of rescission under
  12 C.F.R. Part 226.
         SECTION 3.15.  Section 1201.162(a), Occupations Code, is
  amended to read as follows:
         (a)  Before the completion of a credit application or more
  than one day before entering into any agreement for a sale,
  exchange, or the exercise of the lease purchase option that will not
  be financed, the retailer must provide to the consumer a written
  disclosure in the form promulgated by the commission [board].  The
  disclosure shall be in at least 12-point type and must address
  matters of concern relating to costs and obligations that may be
  associated with home ownership, matters to be considered in making
  financing decisions, related costs that may arise when purchasing a
  manufactured home, and such other matters as the commission [board]
  may consider [deem] appropriate to promote informed purchase,
  financing, and related decisions regarding the acquisition and
  ownership of a manufactured home.  The form shall also
  conspicuously disclose the consumer's right of rescission.
         SECTION 3.16.  Section 1201.203, Occupations Code, is
  amended to read as follows:
         Sec. 1201.203.  FORMS; RULES. (a) The commission [board]
  shall 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 statement of
  ownership.
         (b)  The commission [board] 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 a lienholder recorded with the department.
         SECTION 3.17.  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 evidenced by a
  commission-approved [board-approved] form issued by the department
  setting forth:
               (1)  the name and address of the seller and the name
  and, if it is different from the location of the home, the mailing
  address of the new owner;
               (2)  the manufacturer's name and address and any model
  designation, if available;
               (3)  in accordance with the commission's [board'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 where the home is installed
  for occupancy, including the name of the county, and, if it is
  different from the physical address, the mailing address of the
  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 as follows:
               "On January 1st of each year, a new tax lien comes into
  existence on a manufactured home in favor of each taxing unit having
  jurisdiction where the home is actually located on January 1st.  In
  order to be enforced, any such lien must be recorded with the Texas
  Department of Licensing and Regulation [Housing and Community
  Affairs - Manufactured Housing Division] as provided by law.  You
  may check that department's [division's] records through its
  website or contact that department [division] to learn any recorded
  tax liens.  To find out about the amount of any unpaid tax
  liabilities, contact the tax office for the county where the home
  was actually located on January 1st of that year.";
               (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;
               (11)  statements of whether the home is a salvaged
  manufactured home and whether the home is reserved for business use
  only; and
               (12)  any other information the commission [board]
  requires.
         SECTION 3.18.  The heading to Section 1201.251, Occupations
  Code, is amended to read as follows:
         Sec. 1201.251.  STANDARDS AND REQUIREMENTS ADOPTED BY
  COMMISSION [BOARD].
         SECTION 3.19.  Sections 1201.251(a), (d), and (e),
  Occupations Code, are amended to read as follows:
         (a)  The commission [board] 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)  In order to ensure that the determinations required by
  this section are properly made by qualified persons:
               (1)  the commission's [board's] rules may provide for
  the approval of foundation systems and devices that have been
  approved by licensed engineers; and
               (2)  any generic installation standards promulgated by
  rule shall first be reviewed by an advisory committee established
  by the commission [board] comprised of representatives of
  manufacturers, installers, and manufacturers of stabilization
  systems or devices, including one or more licensed engineers.
         (e)  The advisory committee established by Subsection (d)
  shall make a report to the commission [board] setting forth each
  comment and concern over any proposed rules.  The members of the
  committee do not have any [shall have no] personal liability for
  providing this advice.
         SECTION 3.20.  Section 1201.252(a), Occupations Code, is
  amended to read as follows:
         (a)  A local governmental unit of this state may not adopt a
  standard for the construction or installation of manufactured
  housing in the local governmental unit that is different from a
  standard adopted by the commission [board] unless, after a hearing,
  the commission [board] expressly approves the proposed standard.
         SECTION 3.21.  Section 1201.254, Occupations Code, is
  amended to read as follows:
         Sec. 1201.254.  EFFECTIVE DATE OF REQUIREMENT OR STANDARD.
  Each requirement or standard that is adopted, modified, amended, or
  repealed by the commission [board] must state its effective date.
         SECTION 3.22.  Section 1201.255(b), Occupations Code, is
  amended to read as follows:
         (b)  An installer may not install a used manufactured home at
  a location on a site that has evidence of ponding, runoff under
  heavy rains, or bare uncompacted soil unless the installer first
  obtains the owner's signature on a form promulgated by the
  commission [board] disclosing that such conditions may contribute
  to problems with the stabilization system for that manufactured
  home, including possible damage to that home, and the owner accepts
  that risk.
         SECTION 3.23.  Sections 1201.302(a) and (b), Occupations
  Code, are 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 commission [board].
         (b)  On request, the department shall authorize a local
  governmental unit in this state to perform an inspection or
  enforcement activity related to the construction of a foundation
  system or the erection or installation of manufactured housing at a
  homesite under a contract or other official designation and rules
  adopted by the commission [board].  The department may withdraw the
  authorization if the local governmental unit fails to follow the
  rules, interpretations, and written instructions of the
  department.
         SECTION 3.24.  Section 1201.405(g), Occupations Code, is
  amended to read as follows:
         (g)  The commission [board] by rule may place reasonable
  limits on the costs that may be approved for payment from the trust
  fund, including the costs of reassigned warranty work, and require
  consumers making claims that may be subject to reimbursement from
  the trust fund to provide estimates establishing that the cost will
  be reasonable.  Such rules may also specify such procedures and
  requirements as the commission [board] may deem necessary and
  advisable for the administration of the trust fund.
         SECTION 3.25.  Section 1201.407(e), Occupations Code, is
  amended to read as follows:
         (e)  The final determination may be appealed to the
  commission [board] on or before the 10th day after the date of its
  issuance by giving written notice to the director, who shall place
  the matter before the commission [board] at the next meeting held on
  a date for which the matter could be publicly posted as required by
  Chapter 551, Government Code.
         SECTION 3.26.  Section 1201.513(b), Occupations Code, is
  amended to read as follows:
         (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 to that consumer before the closing of any required
  financing unless the consumer is first given a form adopted by the
  commission [board] disclosing that if for any reason the financing
  does not close, the consumer may be required to vacate the home.
         SECTION 3.27.  Section 1201.552, Occupations Code, is
  amended to read as follows:
         Sec. 1201.552.  LICENSE REVOCATION, SUSPENSION, OR DENIAL;
  HEARING. The director may issue an order to revoke, suspend, or
  deny a new or renewal license.  If, before the 31st day after an
  order revoking, suspending, or denying a license is issued, the
  person against whom the order is issued requests a hearing by giving
  written notice to the director, the director shall set a hearing
  before the State Office of Administrative Hearings.  If the person
  does not request a hearing before the 31st day after the date the
  order is issued, the order becomes final.  Any administrative
  proceedings relating to the revocation, suspension, or denial of a
  license under this subsection shall be a contested case under
  Chapter 2001, Government Code.  The commission [board] shall issue
  an order after receiving a proposal for decision.
         SECTION 3.28.  Section 1201.553, Occupations Code, is
  amended to read as follows:
         Sec. 1201.553.  JUDICIAL REVIEW. Judicial review of any
  order, decision, or determination of the commission [board] is
  instituted by filing a petition with a district court in Travis
  County as provided by Chapter 2001, Government Code.
         SECTION 3.29.  Section 1201.605(d), Occupations Code, is
  amended to read as follows:
         (d)  The director may impose an administrative penalty in
  accordance with this section.  If, before the 31st day after the
  date a person receives notice of the imposition of an
  administrative penalty, the person requests a hearing by giving
  written notice to the director, the director shall set a hearing
  before the State Office of Administrative Hearings.  If the person
  does not request a hearing before the 31st day after the date the
  person receives notice of the imposition of the administrative
  penalty, the penalty becomes final.  Any administrative proceedings
  relating to the imposition of an administrative penalty under this
  subsection shall be a contested case under Chapter 2001, Government
  Code.  The commission [board] shall issue an order after receiving a
  proposal for decision.
         SECTION 3.30.  Section 1201.607, Occupations Code, is
  amended to read as follows:
         Sec. 1201.607.  ISSUANCE OF ORDERS AND REQUESTS FOR
  HEARINGS. Any order issued by the director under this chapter, if
  not appealed before the 31st day after the date the order was
  issued, shall automatically become a final order.  If the person
  made the subject of the order files a written request for a hearing
  with the director, the order shall be deemed to have been appealed
  and shall be 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, and the commission [board]
  shall issue a final order after receiving and reviewing the
  proposal for decision issued pursuant to such hearing.
         SECTION 3.31.  Section 1201.608(c), Occupations Code, is
  amended to read as follows:
         (c)  The department may carry out "sting" or undercover
  investigations in accordance with commission-adopted 
  [board-adopted] rules if the director believes such action to be
  appropriate in order to detect and address suspected violations of
  this chapter.
         SECTION 3.32.  Section 1201.610(c), Occupations Code, is
  amended to read as follows:
         (c)  An order issued under Subsection (a) or (b) must contain
  a reasonably detailed statement of the facts on which the order is
  based.  If a person against whom the order is issued requests a
  hearing before the 31st day after the date the order is issued, the
  director shall set and give notice of a hearing.  The hearing shall
  be governed by Chapter 2001, Government Code.  Based on the findings
  of fact, conclusions of law, and recommendations of the hearings
  officer, the commission [board] by order may find that a violation
  has occurred or has not occurred.
         SECTION 3.33.  Section 1201.611(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission [board] shall adopt rules relating to the
  administrative sanctions that may be enforced against a person
  regulated by the department.
         SECTION 3.34.  Section 11.432(a), Tax Code, is amended to
  read as follows:
         (a)  For a manufactured home to qualify for an exemption
  under Section 11.13, the application for the exemption must be
  accompanied by a copy of the statement of ownership and location for
  the manufactured home issued by the [manufactured housing division
  of the] Texas Department of Licensing and Regulation [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 or be accompanied by a verified copy of the
  purchase contract showing that the applicant is the purchaser of
  the manufactured home, unless a photostatic copy of the current
  title page for the home is displayed on the computer website of the
  Texas Department of Licensing and Regulation [Housing and Community
  Affairs].  The appraisal district may rely upon the computer
  records of the Texas Department of Licensing and Regulation 
  [Housing and Community Affairs] to determine whether a manufactured
  home qualifies for an exemption.
         SECTION 3.35.  Section 23.127(a)(4), Tax Code, is amended to
  read as follows:
               (4)  "Department" means the Texas Department of
  Licensing and Regulation [Housing and Community Affairs].
         SECTION 3.36.  Sections 32.03(a-2), (b), and (e), Tax Code,
  are amended to read as follows:
         (a-2)  A person may not transfer ownership of a manufactured
  home until all tax liens perfected on the home that have been timely
  filed with the Texas Department of Licensing and Regulation 
  [Housing and Community Affairs] have been extinguished or satisfied
  and released and any personal property taxes on the manufactured
  home which accrued on each January 1 that falls within the 18 months
  preceding the date of the sale have been paid.  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 a manufactured home statement of ownership and location
  is not required to pay any taxes that have not been recorded with
  the Texas Department of Licensing and Regulation [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 timely with the Texas Department of Licensing and Regulation 
  [Housing and Community Affairs], no taxing unit, nor anyone acting
  on its behalf, may use a tax warrant or any other method to attempt
  to execute or foreclose on the manufactured home.
         (e)  If personal property taxes on a manufactured home have
  not been levied by the taxing unit, the taxing unit shall provide,
  upon request, 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.  In order 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 Licensing and
  Regulation [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 sums to the
  levied taxes.  At the time the tax collector accepts the payment of
  the taxes, the tax collector shall provide notice that the payment
  of the estimated taxes is an estimate that may be raised once the
  appraisal rolls for the year are certified and that the new owner
  may be liable for the payment of any difference between the tax
  established by the certified appraisal roll and the estimate
  actually paid.
         SECTION 3.37.  Section 623.094(a), Transportation Code, is
  amended to read as follows:
         (a)  Except as authorized by Section 623.095, the department
  may issue a permit only to:
               (1)  a person licensed by the Texas Department of
  Licensing and Regulation [Housing and Community Affairs] as a
  manufacturer, retailer, or installer; or
               (2)  motor carriers registered with the department.
         SECTION 3.38.  The following laws are repealed:
               (1)  Section 2306.067(d), Government Code;
               (2)  Subchapter AA, Chapter 2306, Government Code; and
               (3)  Section 1201.003(5), Occupations Code.
         SECTION 3.39.  On the effective date of this Act:
               (1)  the manufactured housing division of the Texas
  Department of Housing and Community Affairs and the Manufactured
  Housing Board within that department, as they exist immediately
  before the effective date of this Act, are each abolished and the
  offices of the members of the board serving on that date are
  abolished;
               (2)  all powers, duties, functions, and activities
  performed by the manufactured housing division immediately before
  the effective date of this Act are transferred to the Texas
  Department of Licensing and Regulation;
               (3)  all employees of the manufactured housing division
  become employees of the Texas Department of Licensing and
  Regulation, to be assigned duties by the executive director of the
  department;
               (4)  a rule or form of the manufactured housing
  division is a rule or form of the Texas Department of Licensing and
  Regulation and remains in effect until changed by the department;
               (5)  a reference in law to the manufactured housing
  division means the Texas Department of Licensing and Regulation;
               (6)  a reference in a law or rule to the Manufactured
  Housing Board means the Texas Commission of Licensing and
  Regulation;
               (7)  a reference in law to the executive director of the
  manufactured housing division means the executive director of the
  Texas Department of Licensing and Regulation;
               (8)  a license, permit, or certification in effect that
  was issued by the manufactured housing division is continued in
  effect as a license, permit, or certification of the Texas
  Department of Licensing and Regulation;
               (9)  a complaint, investigation, or other proceeding
  pending before the manufactured housing division is transferred
  without change in status to the Texas Department of Licensing and
  Regulation;
               (10)  all obligations, rights, and contracts of the
  manufactured housing division are transferred to the Texas
  Department of Licensing and Regulation; and
               (11)  all property, including records and money, in the
  custody of the manufactured housing division and all funds
  appropriated by the legislature for use by the manufactured housing
  division shall be transferred to the Texas Department of Licensing
  and Regulation.
         SECTION 3.40.  A member of the advisory committee described
  by Section 1201.251, Occupations Code, who was appointed by the
  Manufactured Housing Board before the effective date of this Act
  shall continue to perform the member's duties under Sections
  1201.251 and 1201.104, Occupations Code, as amended by this
  article, under the direction of the Texas Commission of Licensing
  and Regulation until the expiration of the member's term.
  ARTICLE 4.  EFFECTIVE DATE
         SECTION 4.01.  This Act takes effect September 1, 2011.