BILL ANALYSIS

C.S.S.B. 2764

By: Cook

Intergovernmental Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that manufactured homes are considered personal property rather than real property under current law, which, in turn, prevents manufactured home owners from receiving the same benefits that traditional homeowners receive. The bill sponsor has also informed the committee that although manufactured home owners can transfer their homes from personal property to real property through a legal "change of property" process outlined in current law, this process is extensive, and many manufactured home owners are not aware that they have this option. C.S.S.B. 2764 seeks to address this issue by including information regarding the process to transfer a manufactured home from personal property to real property in the written disclosure provided by a retailer to the purchaser of a manufactured home.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.S.B. 2764 amends the Occupations Code to include a purchaser's ability to elect to treat a manufactured home as real property or personal property among the information that must be addressed by the written disclosure that a retailer of manufactured homes must provide to a consumer before the completion of a credit application or more than one day before entering into any agreement for a sale or exchange of a manufactured home that will not be financed. The bill requires that component of the disclosure to explain the following:

· the conditions required for an owner to elect to treat a manufactured home as real property;

· the effects of electing to treat a home as real property;

· that the election must be made on the application for the issuance of a statement of ownership; and

· that the election may be made to convert the home from personal property to real property or from real property to personal property.

C.S.S.B. 2764 applies only to a disclosure that is provided to a consumer on or after the bill's effective date. A disclosure provided to a consumer before the bill's effective date is governed by the law as it existed immediately before that date, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE

C.S.S.B. 2764 differs from the engrossed only by including a Texas Legislative Council draft number in the footer.