88R3171 JAM-F
  By: Shine H.B. No. 2706
  relating to the regulation of manufactured homes.
         SECTION 1.  Subchapter C, Chapter 1201, Occupations Code, is
  amended by adding Section 1201.1021 to read as follows:
  EMERGENCY. (a) For purposes of this section, a declared emergency
  exists when an emergency declaration is issued by the governor or a
  federal agency.
         (b)  During a declared emergency that exceeds a period of 14
  days, the director may:
               (1)  waive licensing requirements to ensure the
  continued and adequate supply of professionals to build, sell,
  transport, insure, finance, and install manufactured homes; and
               (2)  require a person to register with the department
  before engaging in any activity regulated under this chapter.
         (c)  Following the cessation of a declared emergency, the
  director may require a person registered with the department under
  Subsection (b)(2) to comply with the criminal history background
  check requirements and other licensing requirements of this
         SECTION 2.  Section 1201.1025, Occupations Code, is amended
  by adding Subsection (a-1) and amending Subsection (c) to read as
         (a-1)  A person is exempt from holding a retailer's license
  as required by Section 1201.101(b) if all manufactured homes sold
  or offered for sale by the person are:
               (1)  located in a manufactured home community, as
  defined by Section 94.001, Property Code; and
               (2)  sold or offered for sale to the same purchaser in
  connection with a sale of the real property of the community.
         (c)  A person who is eligible for an exemption under this
  section remains subject to the other applicable provisions of this
  subchapter and department rules regarding the sale or transfer of
  manufactured homes.
         SECTION 3.  Section 1201.1031(a), Occupations Code, is
  amended to read as follows:
         (a)  Except as provided by Section 1201.1021, the [The]
  department shall require that an applicant for a license or renewal
  of an unexpired license submit a complete and legible set of
  fingerprints, on a form prescribed by the board, to the department
  or to the Department of Public Safety for the purpose of obtaining
  criminal history record information from the Department of Public
  Safety and the Federal Bureau of Investigation.  The applicant is
  required to submit a set of fingerprints only once under this
  section unless a replacement set is otherwise needed to complete
  the criminal history check required by this section.
         SECTION 4.  Section 1201.104(g), Occupations Code, is
  amended to read as follows:
         (g)  Subsections (a), (a-2), (a-3), and (a-4) do not apply:
               (1)  to a license holder who applies:
                     (A) [(1)]  for a license for an additional
  business location; or
                     (B) [(2)]  to renew or reinstate a license; or
               (2)  during a declared emergency as described by
  Section 1201.1021.
         SECTION 5.  Section 1201.153(c), Occupations Code, is
  amended to read as follows:
         (c)  The notice must:
               (1)  contain the information required by:
                     (A)  the United States Department of Housing and
  Urban Development; or
                     (B)  the board; and
               (2)  be of the type, size, and format required by the
         SECTION 6.  Section 1201.201(5), Occupations Code, is
  amended to read as follows:
               (5)  "Inventory":
                     (A)  has the meaning assigned by Section 9.102,
  Business & Commerce Code; and
                     (B)  does not include manufactured homes used by a
  retailer as equipment, as defined by Section 9.102(a)(33), Business &
  Commerce Code [means new and used manufactured homes that:
                                 [(A)  a retailer has designated as the
  retailer's inventory for sale pursuant to the process implemented
  by the department; and
                                 [(B)  are not used as residential
  dwellings when so designated].
         SECTION 7.  Sections 1201.219(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A lien on manufactured homes in inventory is perfected
  only by filing a financing statement in accordance with Section
  9.310, Business & Commerce Code, and the other provisions of that
  code related to security interests for inventory [the lien with the
  department on the required form].  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.
         (c)  Notwithstanding any other provision of this section or
  any other law, the filing of a financing statement to perfect a lien
  [security agreement] on the inventory of a retailer as described by
  Subsection (a) 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, and the
  department may not consider that lien for the purpose of title
         SECTION 8.  Section 1201.357(b), Occupations Code, is
  amended to read as follows:
         (b)  If the manufacturer, retailer, or installer, as
  applicable, fails or refuses to provide warranty service in
  accordance with the department order under Section 1201.356, the
  director may [shall] hold an informal meeting at which the
  manufacturer, retailer, or installer must show cause as to why the
  manufacturer's, retailer's, or installer's license should not be
  suspended or revoked and at which the consumer may express the
  person's views.  Following the meeting, the director shall either
  resolve the matter by agreed order, dismiss the matter if no
  violation is found to have occurred, or institute an administrative
  action, which may include license suspension or revocation, the
  assessment of administrative penalties, or a combination of such
         SECTION 9.  This Act takes effect September 1, 2023.