83R3726 JAM-D

By: Taylor S.B. No. 1673

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of industrialized housing by the manufactured housing division of the Texas Department of Housing and Community Affairs; providing a criminal penalty; authorizing fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2306.6002, Government Code, is amended to read as follows:

Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department shall administer and enforce Chapters [Chapter] 1201 and 1203, Occupations Code, through the division. The Manufactured Housing Board and the division director shall exercise authority and responsibilities assigned to them under those chapters [that chapter].

SECTION 2. Section 2267.408(b), Government Code, is amended to read as follows:

(b) Subsection (a) does not apply to a job order contract or an order issued under the contract for industrialized housing subject to and approved under Chapter 1203, Occupations Code, or industrialized buildings[,] or relocatable educational facilities subject to and approved under Chapter 1202, Occupations Code, if the contractor employs the services of an architect or engineer who approves the documents for the project.

SECTION 3. Section 233.151(b), Local Government Code, is amended to read as follows:

(b) The term does not include a structure that is constructed in accordance with Chapter 1201, Occupations Code, or a modular home constructed in accordance with Chapter 1203 [1202], Occupations Code.

SECTION 4. The heading to Chapter 1202, Occupations Code, is amended to read as follows:

CHAPTER 1202. INDUSTRIALIZED [HOUSING AND] BUILDINGS

SECTION 5. Section 1202.001(5), Occupations Code, is amended to read as follows:

(5) "Modular component" means a structural part of [housing or] a building constructed at a location other than the building site in a manner that prevents the construction from being adequately inspected for code compliance at the building site without:

(A) damage; or

(B) removal and reconstruction of a part of the housing or building.

SECTION 6. Section 1202.051, Occupations Code, is amended to read as follows:

Sec. 1202.051. COUNCIL MEMBERSHIP. The Texas Industrialized Building Code Council consists of 12 members appointed by the governor as follows:

(1) three members who represent the industrialized [housing and] building industry [industries];

(2) three members who represent municipal building officials from municipalities with a population of more than 25,000;

(3) three members who represent general contractors who construct [housing or] buildings on-site;

(4) one member who is an engineer licensed in this state who acts as a structural engineer;

(5) one member who is an engineer licensed in this state who acts as an electrical engineer; and

(6) one member who is an architect registered in this state.

SECTION 7. Section 1202.052, Occupations Code, is amended to read as follows:

Sec. 1202.052. MEMBERSHIP RESTRICTIONS. An engineer or architect member of the council may not:

(1) be designated as, be employed by, or have an ownership interest in, an entity that is a third-party inspector or design review agency;

(2) have an ownership interest in a business that manufactures or builds industrialized [housing or] buildings;

(3) in a capacity relating to a matter subject to council review, be employed by or be a paid consultant to a manufacturer or builder of industrialized [housing or] buildings; or

(4) be an officer, employee, or paid consultant of a trade association that represents the industrialized [housing or] building industry.

SECTION 8. Section 1202.102, Occupations Code, is amended to read as follows:

Sec. 1202.102. RULES PROVIDING FOR REGISTRATION AND REGULATION. The commission by rule shall provide for registration and regulation of manufacturers or builders of industrialized [housing or] buildings.

SECTION 9. Sections 1202.104(a) and (c), Occupations Code, are amended to read as follows:

(a) The commission shall set fees, in amounts sufficient to cover the costs of the inspections described by this chapter and the administration of this chapter, for:

(1) the registration of manufacturers or builders of industrialized [housing or] buildings;

(2) the inspection of industrialized [housing or] buildings; and

(3) the issuance of decals or insignia required under Section 1202.204.

(c) The building and permit fees charged by a municipality for an inspection of industrialized [housing or] buildings to be located in the municipality may not exceed the fees charged for the equivalent inspection of a building constructed on-site.

SECTION 10. The heading to Subchapter D, Chapter 1202, Occupations Code, is amended to read as follows:

SUBCHAPTER D. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED

[HOUSING AND] BUILDINGS

SECTION 11. Section 1202.151, Occupations Code, is amended to read as follows:

Sec. 1202.151. BUILDING CODES. (a) In addition to complying with Subsection (b) or (c), as applicable, industrialized [housing and] buildings must be constructed to meet or exceed the requirements and standards of the National Electrical Code, published by the National Fire Protection Association, as that code existed on January 1, 1985.

(b) Industrialized [housing and] buildings erected or installed in a municipality must be constructed to meet or exceed the requirements and standards of whichever of the following two groups of codes is used by the municipality:

(1) the Uniform Building Code, Uniform Plumbing Code, and Uniform Mechanical Code, published by the International Conference of Building Officials, as those codes existed on January 1, 1985; or

(2) the Standard Building Code, Standard Mechanical Code, Standard Plumbing Code, and Standard Gas Code, published by the Southern Building Code Congress International, Inc., as those codes existed on January 1, 1985.

(c) Industrialized [housing and] buildings erected or installed outside a municipality or in a municipality that does not use a building code group described by Subsection (b)(1) or (2) must be constructed to meet or exceed the requirements and standards of whichever of those building code groups is selected by the manufacturer of the [housing or] buildings.

SECTION 12. Section 1202.154, Occupations Code, is amended to read as follows:

Sec. 1202.154. DESIGN REVIEW. To ensure compliance with the mandatory building codes, the department or approved design review agency shall review all designs, plans, and specifications of industrialized [housing and] buildings in accordance with council interpretations and instructions.

SECTION 13. Section 1202.155(a), Occupations Code, is amended to read as follows:

(a) The department or approved design review agency shall place the council's stamp of approval on each page of the designs, plans, and specifications of industrialized [housing and] buildings that:

(1) meet or exceed the code standards and requirements under council interpretations and instructions; and

(2) are approved by the department or design review agency.

SECTION 14. The heading to Section 1202.156, Occupations Code, is amended to read as follows:

Sec. 1202.156. COUNCIL DETERMINATION OF CERTAIN QUESTIONS RELATED TO INDUSTRIALIZED [HOUSING AND] BUILDINGS.

SECTION 15. Section 1202.156(a), Occupations Code, is amended to read as follows:

(a) The council shall determine all questions raised by a municipality in connection with the review of designs, plans, and specifications of industrialized [housing and] buildings, as authorized by Section 1202.252.

SECTION 16. Section 1202.201, Occupations Code, is amended to read as follows:

Sec. 1202.201. INSPECTION PROCEDURES. The council may issue instructions to establish procedures for inspecting the construction and installation of industrialized [housing and] buildings to ensure compliance with approved designs, plans, and specifications.

SECTION 17. Section 1202.202(a), Occupations Code, is amended to read as follows:

(a) To ensure compliance with the mandatory building codes or approved designs, plans, and specifications, the department shall inspect the construction of industrialized [housing and] buildings. The executive director may designate approved third-party inspectors to perform the inspections subject to the rules of the commission.

SECTION 18. Sections 1202.203(a) and (c), Occupations Code, are amended to read as follows:

(a) A municipal building official shall inspect all construction involving industrialized [housing and] buildings to be located in the municipality to ensure compliance with designs, plans, and specifications, including inspection of:

(1) the construction of the foundation system; and

(2) the erection and installation of the modules or modular components on the foundation.

(c) An inspection under Subsection (a) shall be conducted[:

[(1) at the permanent site, if the inspection is of industrialized housing; and

[(2)] at the commercial site[, if the inspection is of industrialized buildings].

SECTION 19. Sections 1202.205(a) and (b), Occupations Code, are amended to read as follows:

(a) The commission by rule may authorize an inspection of industrialized [housing or] buildings constructed in another state to be performed by an inspector of the equivalent regulatory agency of the other state.

(b) The commission by rule may authorize an inspection of industrialized [housing or] buildings constructed in this state for use in another state.

SECTION 20. Section 1202.251(b), Occupations Code, is amended to read as follows:

(b) Requirements [Except as provided by Section 1202.253, requirements] and regulations not in conflict with this chapter or with other state law relating to transportation, erection, installation, or use of industrialized [housing or] buildings must be reasonably and uniformly applied and enforced without distinctions as to whether the [housing or] buildings are manufactured or are constructed on-site.

SECTION 21. The heading to Section 1202.252, Occupations Code, is amended to read as follows:

Sec. 1202.252. MUNICIPAL REGULATION OF INDUSTRIALIZED [HOUSING AND] BUILDINGS.

SECTION 22. Section 1202.252(a), Occupations Code, is amended to read as follows:

(a) A municipality that regulates the on-site construction or installation of industrialized [housing and] buildings may:

(1) require and review, for compliance with mandatory building codes, a complete set of designs, plans, and specifications bearing the council's stamp of approval for each installation of industrialized [housing or] buildings in the municipality;

(2) require that all applicable local permits and licenses be obtained before construction begins on a building site;

(3) require, in accordance with commission rules, that all modules or modular components bear an approved decal or insignia indicating inspection by the department; and

(4) establish procedures for the inspection of:

(A) the erection and installation of industrialized [housing or] buildings to be located in the municipality, to ensure compliance with mandatory building codes and commission rules; and

(B) all foundation and other on-site construction, to ensure compliance with approved designs, plans, and specifications.

SECTION 23. Section 1202.301(b), Occupations Code, is amended to read as follows:

(b) A person may not construct, sell or offer to sell, lease or offer to lease, or transport over a street or highway of this state any industrialized [housing or] building, or modular section or component of a modular section, in violation of this chapter or a rule of the commission or order of the commission or executive director.

SECTION 24. Subtitle C, Title 7, Occupations Code, is amended by adding Chapter 1203 to read as follows:

CHAPTER 1203. INDUSTRIALIZED HOUSING

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1203.001. GENERAL DEFINITIONS. In this chapter:

(1) "Board" means the Manufactured Housing Board within the Texas Department of Housing and Community Affairs.

(2) "Construction site building" means a commercial structure that is:

(A) not open to the public; and

(B) used for any purpose at a commercial site by a person constructing a building, road, bridge, utility, or other infrastructure or improvement to real property.

(3) "Department" means the Texas Department of Housing and Community Affairs acting through the manufactured housing division.

(4) "Division" means the manufactured housing division in the department.

(5) "Executive director" means the executive director of the manufactured housing division in the Texas Department of Housing and Community Affairs.

(6) "Modular component" means a structural part of housing constructed at a location other than the building site in a manner that prevents the construction from being adequately inspected for code compliance at the building site without:

(A) damage; or

(B) removal and reconstruction of a part of the housing.

Sec. 1203.002. DEFINITION OF INDUSTRIALIZED HOUSING. (a) Industrialized housing is a residential structure that is:

(1) designed for the occupancy of one or more families;

(2) constructed in one or more modules or constructed using one or more modular components built at a location other than the permanent site; and

(3) designed to be used as a permanent residential structure when the module or the modular component is transported to the permanent site and erected or installed on a permanent foundation system.

(b) Industrialized housing includes the structure's plumbing, heating, air conditioning, and electrical systems.

(c) Industrialized housing does not include:

(1) a residential structure that exceeds three stories or 49 feet in height;

(2) housing constructed of a sectional or panelized system that does not use a modular component; or

(3) a ready-built home constructed in a manner in which the entire living area is contained in a single unit or section at a temporary location for the purpose of selling and moving the home to another location.

SUBCHAPTER B. BOARD POWERS AND DUTIES

Sec. 1203.051. RULES; ORDERS. (a) The board shall adopt rules and issue orders as necessary to:

(1) ensure compliance with the purposes of this chapter; and

(2) provide for uniform enforcement of this chapter.

(b) The board shall adopt rules as appropriate to implement the board's actions, decisions, interpretations, and instructions.

Sec. 1203.052. RULES PROVIDING FOR REGISTRATION AND REGULATION. The board by rule shall provide for registration and regulation of manufacturers or builders of industrialized housing.

Sec. 1203.053. FEES. (a) The board shall set fees, in amounts sufficient to cover the costs of the inspections described by this chapter and the administration of this chapter, for:

(1) the registration of manufacturers or builders of industrialized housing;

(2) the inspection of industrialized housing; and

(3) the issuance of decals or insignia required under Section 1203.154.

(b) The fees shall be paid to the comptroller and placed in the general revenue fund, except that a fee for an inspection may be paid directly to an approved third-party inspector who performs the inspection.

(c) The building and permit fees charged by a municipality for an inspection of industrialized housing to be located in the municipality may not exceed the fees charged for the equivalent inspection of a building constructed on-site.

Sec. 1203.054. APPROVAL OF THIRD-PARTY INSPECTORS AND DESIGN REVIEW AGENCIES. (a) The board shall establish criteria for the approval of, and approve accordingly, all third-party inspectors and design review agencies.

(b) The executive director shall recommend qualified third-party inspectors and design review agencies to the board.

(c) The executive director shall publish a list of all approved inspectors and design review agencies.

Sec. 1203.055. APPLICABILITY OF OTHER LAW. Sections 51.401 and 51.404 do not apply to this chapter.

SUBCHAPTER C. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED

HOUSING

Sec. 1203.101. BUILDING CODES. (a) In addition to complying with Subsection (b) or (c), as applicable, industrialized housing must be constructed to meet or exceed the requirements and standards of the National Electrical Code, published by the National Fire Protection Association, as that code existed on January 1, 1985.

(b) Industrialized housing erected or installed in a municipality must be constructed to meet or exceed the requirements and standards of whichever of the following two groups of codes is used by the municipality:

(1) the Uniform Building Code, Uniform Plumbing Code, and Uniform Mechanical Code, published by the International Conference of Building Officials, as those codes existed on January 1, 1985; or

(2) the Standard Building Code, Standard Mechanical Code, Standard Plumbing Code, and Standard Gas Code, published by the Southern Building Code Congress International, Inc., as those codes existed on January 1, 1985.

(c) Industrialized housing erected or installed outside a municipality or in a municipality that does not use a building code group described by Subsection (b)(1) or (2) must be constructed to meet or exceed the requirements and standards of whichever of those building code groups is selected by the manufacturer of the housing.

Sec. 1203.102. BUILDING CODE AMENDMENT. If a code described by Section 1203.101 is amended after January 1, 1985, the requirements and standards of the amended code shall be used in place of the January 1, 1985, edition if the board determines that use of the amended code is:

(1) in the public interest; and

(2) consistent with the purposes of this chapter.

Sec. 1203.103. BUILDING CODE AMENDMENT: MUNICIPALITY OR OTHER POLITICAL SUBDIVISION. (a) A municipality or other political subdivision may not require or enforce, as a prerequisite for granting or approving a building or construction permit or certificate of occupancy, an amendment to a code described by Section 1203.101.

(b) On the petition of a local building official and after a hearing, the board may require a reasonable amendment to a building code group described by Section 1203.101(b)(1) or (2) that the board determines to be essential for public health and safety. The amendment shall be applied uniformly on a statewide basis.

Sec. 1203.104. DESIGN REVIEW. To ensure compliance with the mandatory building codes, the department or approved design review agency shall review all designs, plans, and specifications of industrialized housing in accordance with board interpretations and instructions.

Sec. 1203.105. BOARD STAMP OF APPROVAL. (a) The department or approved design review agency shall place the board's stamp of approval on each page of the designs, plans, and specifications of industrialized housing that:

(1) meet or exceed the code standards and requirements under board interpretations and instructions; and

(2) are approved by the department or design review agency.

(b) Each page of the designs, plans, and specifications must bear the board's stamp of approval if the designs, plans, and specifications satisfy the requirements of Subsection (a)(1) and are approved in accordance with Subsection (a)(2).

Sec. 1203.106. BOARD DETERMINATION OF CERTAIN QUESTIONS RELATED TO INDUSTRIALIZED HOUSING. (a) The board shall determine all questions raised by a municipality in connection with the review of designs, plans, and specifications of industrialized housing, as authorized by Section 1203.202.

(b) With reference to the standards and requirements of the mandatory building codes, the board shall determine, from an engineering performance standpoint, all questions concerning:

(1) code equivalency; or

(2) alternative materials or methods of construction.

Sec. 1203.107. BOARD DECISIONS BINDING. The decisions, actions, and interpretations of the board are binding on the department, third-party inspectors, design review agencies, and municipalities and other political subdivisions.

SUBCHAPTER D. INSPECTIONS

Sec. 1203.151. INSPECTION PROCEDURES. The board may issue instructions to establish procedures for inspecting the construction and installation of industrialized housing to ensure compliance with approved designs, plans, and specifications.

Sec. 1203.152. DEPARTMENT INSPECTIONS. (a) To ensure compliance with the mandatory building codes or approved designs, plans, and specifications, the department shall inspect the construction of industrialized housing. The executive director may designate approved third-party inspectors to perform the inspections subject to the rules of the board.

(b) Local building officials may witness department inspections to enable the local officials to make recommendations on inspection procedures to the board.

Sec. 1203.153. ON-SITE INSPECTIONS. (a) A municipal building official shall inspect all construction involving industrialized housing to be located in the municipality to ensure compliance with designs, plans, and specifications, including inspection of:

(1) the construction of the foundation system; and

(2) the erection and installation of the modules or modular components on the foundation.

(b) An approved third-party inspector shall perform on-site inspections of industrialized housing to be located outside the municipality.

(c) An inspection under Subsection (a) shall be conducted at the permanent site of the industrialized housing.

Sec. 1203.154. RULES PROVIDING FOR DECALS OR INSIGNIA. (a) The board by rule shall provide for the placement of decals or insignia on each transportable modular section or modular component to indicate compliance with the mandatory building codes.

(b) The board by rule shall exempt a construction site building from the requirements of this section.

Sec. 1203.155. RECIPROCITY. (a) The board by rule may authorize an inspection of industrialized housing constructed in another state to be performed by an inspector of the equivalent regulatory agency of the other state.

(b) The board by rule may authorize an inspection of industrialized housing constructed in this state for use in another state.

(c) The board shall enter into a reciprocity agreement with the equivalent regulatory agency of the other state as necessary to implement this section.

SUBCHAPTER E. MUNICIPAL AUTHORITY

Sec. 1203.201. RESERVATION OF MUNICIPAL AUTHORITY. (a) Municipal authority is specifically and entirely reserved to a municipality, including, as applicable:

(1) land use and zoning requirements;

(2) building setback requirements;

(3) side and rear yard requirements;

(4) site planning and development and property line requirements;

(5) subdivision control; and

(6) landscape architectural requirements.

(b) Except as provided by Section 1203.203, requirements and regulations not in conflict with this chapter or with other state law relating to transportation, erection, installation, or use of industrialized housing must be reasonably and uniformly applied and enforced without distinctions as to whether the housing is manufactured or is constructed on-site.

Sec. 1203.202. MUNICIPAL REGULATION OF INDUSTRIALIZED HOUSING. (a) A municipality that regulates the on-site construction or installation of industrialized housing may:

(1) require and review, for compliance with mandatory building codes, a complete set of designs, plans, and specifications bearing the board's stamp of approval for each installation of industrialized housing in the municipality;

(2) require that all applicable local permits and licenses be obtained before construction begins on a building site;

(3) require, in accordance with board rules, that all modules or modular components bear an approved decal or insignia indicating inspection by the department; and

(4) establish procedures for the inspection of:

(A) the erection and installation of industrialized housing to be located in the municipality, to ensure compliance with mandatory building codes and board rules; and

(B) all foundation and other on-site construction, to ensure compliance with approved designs, plans, and specifications.

(b) Procedures described by Subsection (a)(4) may require:

(1) before occupancy, a final inspection or test in accordance with mandatory building codes; and

(2) correction of any deficiency identified by the test or discovered in the final inspection.

Sec. 1203.203. MUNICIPAL REGULATION OF SINGLE-FAMILY AND DUPLEX INDUSTRIALIZED HOUSING. (a) Single-family or duplex industrialized housing must have all local permits and licenses that are applicable to other single-family or duplex dwellings.

(b) For purposes of this section, single-family or duplex industrialized housing is real property.

(c) A municipality may adopt regulations that require single-family or duplex industrialized housing to:

(1) have a value equal to or greater than the median taxable value for each single-family dwelling located within 500 feet of the lot on which the industrialized housing is proposed to be located, as determined by the most recent certified tax appraisal roll for each county in which the properties are located;

(2) have exterior siding, roofing, roof pitch, foundation fascia, and fenestration compatible with the single-family dwellings located within 500 feet of the lot on which the industrialized housing is proposed to be located;

(3) comply with municipal aesthetic standards, building setbacks, side and rear yard offsets, subdivision control, architectural landscaping, square footage, and other site requirements applicable to single-family dwellings; or

(4) be securely fixed to a permanent foundation.

(d) For purposes of Subsection (c), "value" means the taxable value of the industrialized housing and the lot after installation of the housing.

(e) Except as provided by Subsection (c), a municipality may not adopt a regulation under this section that is more restrictive for industrialized housing than that required for a new single-family or duplex dwelling constructed on-site.

(f) This section does not:

(1) limit the authority of a municipality to adopt regulations to protect historic properties or historic districts; or

(2) affect deed restrictions.

SUBCHAPTER F. PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES

Sec. 1203.251. PROHIBITED PRACTICES. (a) In this section, "person" means an individual, partnership, company, corporation, association, or other group, however organized.

(b) A person may not construct, sell or offer to sell, lease or offer to lease, or transport over a street or highway of this state any industrialized housing, or modular section or component of a modular section, in violation of this chapter or a rule of the board or department or order of the board or executive director.

Sec. 1203.252. DENIAL OF CERTIFICATE; DISCIPLINARY ACTION. In addition to imposing sanctions allowed under Section 51.353, the board may deny, permanently revoke, or suspend for a definite period and specified location or geographic area a certificate of registration if the board finds that the applicant or registrant:

(1) provided false information on an application or other document filed with the department, division, or board;

(2) failed to pay a fee or file a report required by the department, division, or board for the administration or enforcement of this chapter;

(3) engaged in a false, misleading, or deceptive act or practice as described by Subchapter E, Chapter 17, Business & Commerce Code; or

(4) violated:

(A) this chapter;

(B) a rule adopted by the board or department or order issued by the board or the executive director under this chapter; or

(C) a decision, action, or interpretation of the board.

SUBCHAPTER G. PENALTIES

Sec. 1203.301. CRIMINAL PENALTY. (a) In this section, "person" has the meaning assigned by Section 1203.251.

(b) A person commits an offense if the person violates this chapter or a published rule of the board or department or order of the board or the executive director.

(c) An offense under this section is a Class A misdemeanor.

SECTION 25. Section 623.091, Transportation Code, is amended to read as follows:

Sec. 623.091. DEFINITION. In this subchapter, "manufactured house" means "industrialized building" as defined by Chapter 1202, Occupations Code, "industrialized housing" as defined by Chapter 1203 [1202], Occupations Code, or "manufactured home" as defined by Chapter 1201, Occupations Code. The term includes a temporary chassis system or returnable undercarriage used for the transportation of a manufactured house and a transportable section of a manufactured house that is transported on a chassis system or returnable undercarriage and that is constructed so that it cannot, without dismantling or destruction, be transported within the legal size limits for a motor vehicle.

SECTION 26. Section 158.002, Tax Code, is amended to read as follows:

Sec. 158.002. DEFINITIONS. In this chapter, "manufactured home," "manufacturer," "retailer," and "person" have the same meanings as they are given by Chapter 1201, Occupations Code. In addition, the term "manufactured home" also includes and means "industrialized housing" as defined by Chapter 1203 [1202], Occupations Code.

SECTION 27. The following provisions of the Occupations Code are repealed:

(1) Section 1202.002;

(2) Section 1202.203(b); and

(3) Section 1202.253.

SECTION 28. On the effective date of this Act:

(1) all powers, duties, functions, and activities performed by the Texas Department of Licensing and Regulation relating to the regulation of industrialized housing immediately before the effective date of this Act are transferred to the manufactured housing division of the Texas Department of Housing and Community Affairs;

(2) a rule or form of the Texas Department of Licensing and Regulation related to the regulation of industrialized housing is a rule or form of the manufactured housing division and remains in effect until changed by the division;

(3) a reference in law to the Texas Department of Licensing and Regulation in relation to the regulation of industrialized housing means the manufactured housing division;

(4) a reference in a law or rule to the Texas Commission of Licensing and Regulation in relation to the regulation of industrialized housing means the Manufactured Housing Board;

(5) a reference in law to the executive director of the Texas Department of Licensing and Regulation in relation to the regulation of industrialized housing means the executive director of the manufactured housing division;

(6) a license, permit, or certification in effect that was issued by the Texas Department of Licensing and Regulation in relation to the regulation of industrialized housing is continued in effect as a license, permit, or certification of the manufactured housing division;

(7) a complaint, investigation, or other proceeding pending before the Texas Department of Licensing and Regulation in relation to the regulation of industrialized housing is transferred without change in status to the manufactured housing division;

(8) all obligations, rights, and contracts of the Texas Department of Licensing and Regulation in relation to the regulation of industrialized housing are transferred to the manufactured housing division; and

(9) all property, including records and money, in the custody of the Texas Department of Licensing and Regulation relating to the regulation of industrialized housing and all funds appropriated by the legislature for use by the Texas Department of Licensing and Regulation for the regulation of industrialized housing shall be transferred to the manufactured housing division.

SECTION 29. This Act takes effect September 1, 2013.