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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of manufactured homes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1201.1025, Occupations Code, is amended |
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by adding Subsection (a-1) and amending Subsection (c) to read as |
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follows: |
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(a-1) A person is exempt from holding a retailer's license |
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as required by Section 1201.101(b) if all manufactured homes sold |
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or offered for sale by the person are: |
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(1) located in a manufactured home community, as |
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defined by Section 94.001, Property Code; and |
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(2) sold or offered for sale to the same purchaser in |
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connection with a sale of the real property of the community. |
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(c) A person who is eligible for an exemption under this |
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section remains subject to the other applicable provisions of this |
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subchapter and department rules regarding the sale or transfer of |
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manufactured homes. |
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SECTION 2. Section 1201.153(c), Occupations Code, is |
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amended to read as follows: |
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(c) The notice must: |
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(1) contain the information required by: |
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(A) the United States Department of Housing and |
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Urban Development; or |
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(B) the board; and |
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(2) be of the type, size, and format required by the |
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director. |
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SECTION 3. Section 1201.201(5), Occupations Code, is |
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amended to read as follows: |
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(5) "Inventory": |
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(A) has the meaning assigned by Section 9.102, |
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Business & Commerce Code; and |
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(B) does not include manufactured homes used by a |
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retailer as equipment, as defined by Section 9.102(a)(33), Business & |
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Commerce Code [means new and used manufactured homes that: |
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[(A) a retailer has designated as the |
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retailer's inventory for sale pursuant to the process implemented |
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by the department; and |
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[(B) are not used as residential |
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dwellings when so designated]. |
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SECTION 4. Sections 1201.219(a) and (c), Occupations Code, |
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are amended to read as follows: |
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(a) A lien on manufactured homes in inventory is perfected |
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only by filing a financing statement in accordance with Section |
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9.310, Business & Commerce Code, and the other provisions of that |
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code related to security interests for inventory [the lien with the |
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department on the required form]. Once perfected, the lien applies |
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to the manufactured homes in the inventory as well as to any |
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proceeds from the sale of those homes. The department may suspend |
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or revoke the license of a retailer who fails to satisfy a perfected |
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inventory lien. |
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(c) Notwithstanding any other provision of this section or |
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any other law, the filing of a financing statement to perfect a lien |
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[security agreement] on the inventory of a retailer as described by |
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Subsection (a) does not prevent a buyer in the ordinary course of |
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business, as defined by Section 1.201, Business & Commerce Code, |
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from acquiring good and marketable title free of that lien, and the |
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department may not consider that lien for the purpose of title |
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issuance. |
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SECTION 5. Section 1201.357(b), Occupations Code, is |
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amended to read as follows: |
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(b) If the manufacturer, retailer, or installer, as |
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applicable, fails or refuses to provide warranty service in |
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accordance with the department order under Section 1201.356, the |
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director may [shall] hold an informal meeting at which the |
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manufacturer, retailer, or installer must show cause as to why the |
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manufacturer's, retailer's, or installer's license should not be |
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suspended or revoked and at which the consumer may express the |
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person's views. Following the meeting, the director shall either |
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resolve the matter by agreed order, dismiss the matter if no |
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violation is found to have occurred, or institute an administrative |
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action, which may include license suspension or revocation, the |
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assessment of administrative penalties, or a combination of such |
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actions. |
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SECTION 6. This Act takes effect September 1, 2023. |
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