By: King of Uvalde, et al. (Senate Sponsor - Estes) H.B. No. 2019          (In the Senate - Received from the House April 26, 2017;   May 4, 2017, read first time and referred to Committee on Business &   Commerce; May 15, 2017, reported favorably by the following vote:     Yeas 9, Nays 0; May 15, 2017, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the regulation of manufactured homes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1201.003, Occupations Code, is amended   by amending Subdivisions (1), (6), (7), (8), (19), (23), (24),   (26), (30), and (32) and adding Subdivisions (9-a), (21-a), and   (26-a) to read as follows:                (1)  "Advertisement" means a commercial message that   promotes the sale or[,] exchange[, or lease-purchase] of a   manufactured home and that is presented on radio, television, a   public-address system, or electronic media or appears in a   newspaper, a magazine, a flyer, a catalog, direct mail literature,   an inside or outside sign or window display, point-of-sale   literature, a price tag, or other printed material.  The term does   not include educational material or material required by law.                (6)  "Broker" means a person engaged by one or more   other persons to negotiate or offer to negotiate a bargain or   contract for the sale or[,] exchange[, or lease-purchase] of a   manufactured home for which a certificate or other document of   title has been issued and is outstanding.  The term does not   include a person who maintains a location for the display of   manufactured homes.                (7)  "Business use" means the use of a manufactured   home in conjunction with operating a business, for a purpose other   than as a permanent or temporary residential dwelling.                (8)  "Consumer" means a person, other than a person   licensed under this chapter, who seeks to acquire or acquires by   purchase or[,] exchange[, or lease-purchase] a manufactured home.                (9-a)  "Credit transaction" has the meaning assigned by   Section 347.002(a)(3), Finance Code.                (19)  "Manufacturer" means a person who constructs or   assembles manufactured housing for sale or[,] exchange[, or   lease-purchase] in this state.                (21-a)  "Nonresidential use" means use of a   manufactured home for a purpose other than as a permanent or   temporary residential dwelling.                (23)  "Related person" means a person who:                      (A)  directly [or indirectly] participates in   management or policy decisions; and                      (B)  is designated by an entity and satisfies the   requirements of Sections 1201.104 and 1201.113 on behalf of the   entity, if the entity is licensed or seeking licensure under this   chapter.                (24)  "Retailer" means a person who:                      (A)  is engaged in the business of buying for   resale, selling, or exchanging manufactured homes or offering   manufactured homes for sale or[,] exchange[, or lease-purchase] to   consumers, including a person who maintains a location for the   display of manufactured homes; and                      (B)  sells or[,] exchanges[, or lease-purchases]   at least two manufactured homes to consumers in a 12-month period.                (26)  "Salesperson" means a person who, as an employee   or agent of a retailer or broker, sells [or lease-purchases] or   offers to sell [or lease-purchase] manufactured housing to a   consumer.                (26-a)  "Sales purchase contract" means the contract   between a retailer and a consumer for the purchase of a manufactured   home from the retailer.                (30)  "Statement of ownership [and location]" means a   statement issued by the department and setting forth:                      (A)  the ownership [and location] of a   manufactured home in this state as provided by Section 1201.205;   and                      (B)  other information required by this chapter.                (32)  "Used manufactured home" means a manufactured   home which has been occupied for any use or for which a statement of   ownership [and location] has been issued. The term does not   include:                      (A)  a manufactured home that was used as a sales   model at a licensed retail location; or                      (B)  a manufactured home that:                            (i)  was sold as a new manufactured home and   installed but never occupied;                            (ii)  had a statement of ownership [and   location]; and                            (iii)  was taken back from the consumer or   transferee because of a first payment default or agreement to   rescind or unwind the transaction.          SECTION 2.  Subchapter A, Chapter 1201, Occupations Code, is   amended by adding Section 1201.010 to read as follows:          Sec. 1201.010.  ELECTRONIC PUBLIC RECORDS REQUIRED. The   department shall provide to the public through the department's   Internet website searchable and downloadable information regarding   manufactured home ownership records, lien records, installation   records, license holder records, and enforcement actions.          SECTION 3.  Section 1201.054, Occupations Code, is amended   by adding Subsection (d) to read as follows:          (d)   To maintain affordability of manufactured homes in this   state, the board shall:                (1)  conduct a cost benefit analysis for any rule,   process, or policy change that will increase a fee or another   incurred cost by more than $50 for license holders or consumers; and                (2)  present at the next board meeting an analysis   detailing whether the need for the rule, process, or policy change   justifies the increase.          SECTION 4.  Section 1201.055(a), Occupations Code, is   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 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 retailer;                (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.          SECTION 5.  Sections 1201.101(b), (c), and (g), Occupations   Code, are amended to read as follows:          (b)  Except as otherwise provided by this chapter, a person   may not sell or[,] exchange, or [lease-purchase or] offer to sell   or[,] exchange, [or lease-purchase] two or more manufactured homes   to consumers in this state in a 12-month period unless the person   holds a retailer's license.          (c)  A person may not offer to negotiate or negotiate for   others a bargain or contract for the sale or [,] exchange[, or   lease-purchase] of two or more manufactured homes to consumers in   this state in a 12-month period unless the person holds a broker's   license.          (g)  A person may not make an announcement concerning the   sale or[,] exchange[, or lease-purchase] of, or offer to sell or[,]   exchange[, or lease-purchase], a manufactured home to a consumer in   this state through an advertisement unless the person holds a   manufacturer's, retailer's, or broker's license.  This subsection   does not apply to:                (1)  a person exempt from licensing; or                (2)  an advertisement concerning real property on which   there is a manufactured home that has been converted to real   property in accordance with Section 1201.2055.          SECTION 6.  Section 1201.102, Occupations Code, is amended   by adding Subsection (c-1) and amending Subsection (d) to read as   follows:          (c-1)  An individual who is listed as an owner, principal,   partner, corporate officer, registered agent, or related person of   an entity that is licensed as a retailer or broker may act on behalf   of that license holder in the capacity of a retailer, broker, or   salesperson without holding the appropriate license if at least one   individual who is listed as an owner, principal, partner, corporate   officer, registered agent, or related person of the entity has   satisfied the requirements of Sections 1201.104 and 1201.113.          (d)  A person who holds a real estate broker's or   salesperson's license under Chapter 1101 may act as a broker or   salesperson under this chapter without holding a license or filing   a bond or other security as required by this chapter if negotiations   for the sale or[,] exchange[, or lease-purchase] of a manufactured   home are conducted for a consumer for whom the person is also acting   as a real estate broker or salesperson under Chapter 1101   consistent with Section 1201.007.          SECTION 7.  Sections 1201.104(a-1), (a-2), and (h),   Occupations Code, are amended to read as follows:          (a-1)  If the applicant is not an individual, the applicant   must have at least one related person who satisfies the   requirements of Subsection (a). If that applicant is applying for a   retailer's license, the related person must be a management   official who satisfies the requirements of Subsections (a) and   (a-2) for [at] each retail location operated by the applicant.          (a-2)  An applicant for a retailer's license must complete   four hours of specialized instruction relevant to the sale and [,]   exchange[, and lease-purchase] of manufactured homes. The   instruction under this subsection is in addition to the instruction   required under Subsection (a).          (h)  An examination must be a requirement of successful   completion of any initial required course of instruction under this   section. The period needed to complete an examination under this   subsection may not be used to satisfy the minimum education   requirements under Subsection (a), (a-2), (a-3), or (a-4). If the   examination failure rate exceeds 25 percent, the board shall:                (1)  review the examination and the examination   procedures; and                (2)  adopt rules intended to maintain the historical   passage rate for the examination.          SECTION 8.  Section 1201.105(a), Occupations Code, is   amended to read as follows:          (a)  The department may not issue or renew a license unless a   bond or other security in a form prescribed by the director is filed   with the department as provided by this subchapter. The bond or   other security is payable to the manufactured homeowner consumer   claims program [trust fund].          SECTION 9.  Section 1201.106(a-1), Occupations Code, is   amended to read as follows:          (a-1)  Notwithstanding the provisions of Subsection (a), the   director may require additional security for the licensing,   renewal, or relicensing of a person, or the sponsoring of a   salesperson, who, either directly, as a related person, or through   a related person, has been the subject of a license revocation, has   caused the manufactured homeowner consumer claims program [trust   fund] to incur unreimbursed costs or liabilities in excess of   available surety bond coverage, or has failed to pay an   administrative penalty that has been assessed by final order.          SECTION 10.  Sections 1201.107(b) and (d), Occupations Code,   are amended to read as follows:          (b)  Property used for the business that is not contiguous   to, or located within 300 feet of, a bonded location requires a   separate bond. A location at which a manufactured home is shown to   the public or at which the home is offered for sale or[,] exchange[,   or lease-purchase] by a retailer to consumers requires a bond.          (d)  If a retailer or broker offers for sale or participates   in any way in the sale of a manufactured home at a location other   than an undivided parcel of real property where more than one   manufactured home is located and offered for sale or[,] exchange[,   or lease-purchase] by a retailer or broker to the public, the   retailer or broker must:                (1)  identify the bond on file with the department in   conjunction with that person's license; and                (2)  provide contractually in the sales transaction   that the identified bond applies to the sale.          SECTION 11.  Section 1201.111(a), Occupations Code, is   amended to read as follows:          (a)  Notwithstanding any other provision of this chapter, a   state or national bank, state or federal savings and loan   association, federal savings bank, or state or federal credit union   engaged in the business of selling or[,] exchanging, [or   lease-purchasing] or offering for sale or[,] exchange, [or   lease-purchase] manufactured homes that the institution has   acquired through repossession of collateral is not required to   attend a course of instruction or file a bond or other security to   be licensed as a retailer.          SECTION 12.  The heading to Section 1201.113, Occupations   Code, is amended to read as follows:          Sec. 1201.113.  [CERTIFICATION AND] CONTINUING EDUCATION   PROGRAMS.          SECTION 13.  Section 1201.113, Occupations Code, is amended   by amending Subsections (a) and (b) and adding Subsection (d) to   read as follows:          (a)  The 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   board may deem relevant.          (b)  Completion of an approved [or administered] continuing   education program [course] described by Subsection (a) is a   prerequisite to renewal of a license.          (d)  If the approval of a continuing education program   expires between regularly scheduled board meetings, the director   may, on receipt of the required renewal application, fee, and   necessary documentation of education material, approve the   continued administration of the program until the next board   meeting.          SECTION 14.  Section 1201.118, Occupations Code, is amended   to read as follows:          Sec. 1201.118.  RULES RELATING TO CERTAIN PERSONS. The   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 manufactured homeowner consumer claims   program [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 15.  Section 1201.151, Occupations Code, is amended   by amending Subsection (e) and adding Subsection (f) to read as   follows:          (e)  A deposit becomes a down payment upon execution of a   sales purchase contract [binding written agreement].  Thereafter,   if the consumer exercises the consumer's three-day [a] right of   rescission in accordance with Section 1201.1521, the retailer   shall, not later than the 15th day after the date of the rescission,   refund to the consumer all money and other consideration received   from the consumer, with only the allowable [without offset or]   deduction for real property appraisal and title work expenses in   accordance with Section 1201.1511.          (f)  Retention of real property appraisal and title work   expenses authorized by Subsection (e) is not allowed if the   consumer exercises the right of rescission in accordance with 12   C.F.R. Section 1026.23.          SECTION 16.  Subchapter D, Chapter 1201, Occupations Code,   is amended by adding Section 1201.1511 to read as follows:          Sec. 1201.1511.  REAL PROPERTY APPRAISAL AND TITLE WORK   EXPENSES. (a) Notwithstanding Section 1201.151 or 1201.1521, a   retailer may collect from a consumer in advance or deduct from the   consumer's deposit or down payment any expenses incurred by the   retailer if, after receiving a conditional notification of approval   from a lender chosen by the consumer, the consumer:                (1)  contracts with the retailer to arrange for   services that are performed by an appraiser of real property or a   title company in connection with real property that will be   included in the purchase or exchange or is intended to be pledged by   the consumer as collateral for the consumer's purchase or exchange   of a  manufactured home;                (2)  is provided notice of laws relating to rescission   and real property appraisal and title work expenses before signing   the contract for real property appraisal and title work services;   and                (3)  is provided an itemized list of the specific real   property appraisal and title work expenses incurred by the   retailer.          (b)  A retailer may not charge to the consumer any fees or   expenses other than the real property appraisal and title work   expenses disclosed to the consumer under Subsection (a)(3).          (c)  The department may demand copies of contracts,   invoices, receipts, or other proof of any real property appraisal   and title work expenses retained by a retailer.          SECTION 17.  Section 1201.152(a), Occupations Code, is   amended to read as follows:          (a)  If a retailer purchases a new manufactured home from an   unlicensed manufacturer in violation of Section 1201.505, a   consumer's contract with the retailer for the purchase or[,]   exchange[, or lease-purchase] of the home is voidable until the   second anniversary of the date of purchase or[,] exchange[, or   lease-purchase] of the home.          SECTION 18.  Section 1201.1521, Occupations Code, is amended   to read as follows:          Sec. 1201.1521.  RESCISSION OF CONTRACT FOR SALE OR[,]   EXCHANGE[, OR LEASE-PURCHASE] OF HOME. (a) A person who acquires a   manufactured home from or through a licensee by purchase or[,]   exchange[, or lease-purchase] may, in a cash transaction occurring    not later than the third day after the date the sales purchase   [applicable] contract is signed, rescind the contract without   penalty or charge other than the real property appraisal and title   work expenses incurred in accordance with Section 1201.1511.          (b)  A person who acquires a manufactured home from or   through a licensee by purchase or exchange may, in a transfer that   is based wholly or partly on a credit transaction occurring not   later than the third day after the date of the signing of the   binding note, security agreement, or other financing credit   contract with respect to which the consumer's purchased   manufactured home will serve as collateral for the credit   transaction, rescind the contract without penalty or charge other   than the real property appraisal and title work expenses incurred   in accordance with Section 1201.1511.          (c) [(b)]  Subject to rules adopted by the 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 1026 [226].          SECTION 19.  Section 1201.156, Occupations Code, is amended   to read as follows:          Sec. 1201.156.  ADVERTISEMENT AS OFFER. An advertisement   relating to manufactured housing is an offer to sell or [,]   exchange[, or lease-purchase] manufactured housing to consumers.          SECTION 20.  Section 1201.157, Occupations Code, is amended   to read as follows:          Sec. 1201.157.  RETAILER AS WAREHOUSE [WAREHOUSEMAN]. (a)   With respect to the storage of manufactured homes for hire, a [A]   licensed retailer is:                (1)  a "warehouse" ["warehouseman"] as defined by   Section 7.102, Business & Commerce Code; and                (2)  a "warehouseman" under Chapter 24, Property Code    [, for the storage of manufactured homes for hire].          (b)  The provisions of the Business & Commerce Code relating   to the storage of goods for hire apply to a licensed retailer acting   as a warehouse [warehouseman].          (c)  A licensed retailer acting as a warehouse and   warehouseman satisfies all storage, bonding, insurance, public   sale, and security requirements if the storage of a manufactured   home occurs on the retailer's lot and the home is secured in the   same manner the retailer secures a manufactured home held on the lot   as inventory.          (d)  In accordance with the provisions of Section 7.210,   Business & Commerce Code, a licensed retailer acting as a warehouse   to enforce a warehouse's lien is considered to have sold a   manufactured home in a commercially reasonable manner if the   retailer sells the manufactured home in the same manner the   retailer would sell a manufactured home at retail.          SECTION 21.  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 or[,]   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 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 board may 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 22.  Section 1201.164, Occupations Code, is amended   to read as follows:          Sec. 1201.164.  ADVANCE COPY OF SALES PURCHASE CONTRACT AND   DISCLOSURE STATEMENTS; OFFER BY RETAILER. (a) In a transaction   that is to be financed and that will not be subject to the federal   Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533)   and its implementing regulations, a retailer shall deliver to a   consumer at least 24 hours before the sales purchase contract is   fully executed the contract, with all required information   included, signed by the retailer.  The delivery of the contract,   with all required information included, signed by the retailer   constitutes a firm offer by the retailer.  Except as provided for by    [in] Subsection (b), the consumer may accept the offer not earlier   than 24 hours after the delivery of the contract.  If the consumer   has not accepted the offer within 72 hours after the delivery of the   contract, the retailer may withdraw the offer.          (b)  Before the execution of the sales purchase contract, the    [The] consumer may modify or waive the right to rescind and the   deadlines for disclosures [before the execution of the contract]   that are provided by Subsection (a) if the consumer determines that   the purchase of the manufactured home is needed to meet a bona fide   personal emergency. If the consumer has a bona fide personal   emergency that necessitates the immediate purchase of the   manufactured home, the consumer shall give the retailer a dated   written statement that describes the emergency, specifically   modifies or waives the notice periods and any right of rescission,   and bears the signature of all of the consumers entitled to the   disclosures and right of rescission. In such event the retailer   shall immediately give the consumer all of the disclosures required   by this code and sell the manufactured home without the required   waiting periods or the right of rescission. The department shall   verify with the consumer the consumer's bona fide personal   emergency before issuing the statement of ownership [Printed forms   for this purpose are prohibited except in a county that has been   declared by the governor to be a major disaster area. If the   governor declares a county to be a major disaster area, the retailer   may use printed forms promulgated by the department. This   exception shall expire one year after the county has been declared a   major disaster area].          SECTION 23.  The heading to Subchapter E, Chapter 1201,   Occupations Code, is amended to read as follows:   SUBCHAPTER E. MANUFACTURED HOME STATEMENTS OF OWNERSHIP [AND   LOCATION]          SECTION 24.  Section 1201.201, Occupations Code, is amended   by amending Subdivisions (1), (2), (3), (5), and (11) and adding   Subdivision (1-a) to read as follows:                (1)  "Certificate of attachment" means a written   instrument issued solely by and under the authority of the director   before September 1, 2001, that provides the information required by   former Section 19(l), Texas Manufactured Housing Standards Act   (Article 5221f, Vernon's Texas Civil Statutes), as that subsection   existed before that date. Beginning September 1, 2003, a   certificate of attachment is considered to be a statement of   ownership and may be exchanged for a statement of ownership as   provided by Section 1201.214.                (1-a)  "Debtor" has the meaning assigned by Section   9.102, Business & Commerce Code.                (2)  "Document of title" means a written instrument   issued solely by and under the authority of the director before   September 1, 2003, that provides the information required by   Section 1201.205, as that section existed before that date.   Beginning September 1, 2003, a document of title is considered to be   a statement of ownership [and location] and may be exchanged for a   statement of ownership [and location] as provided by Section   1201.214.                (3)  "First retail sale" means a consumer's initial   acquisition of a new manufactured home from a retailer by purchase   or[,] exchange[, or lease-purchase]. The term includes a bargain,   sale, transfer, or delivery of a manufactured home for which the   director has not previously issued a statement of ownership [and   location], with intent to pass an interest in the home, other than a   lien.                (5)  "Inventory" 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 [has the meaning assigned by Section 9.102, Business &   Commerce Code].                (11)  "Subsequent sale" means a bargain, sale,   transfer, or delivery of a manufactured home, with intent to pass an   interest in the home, other than a lien, from one person to another   after the first retail sale and initial issuance of a statement of   ownership [and location].          SECTION 25.  Section 1201.203, Occupations Code, is amended   to read as follows:          Sec. 1201.203.  FORMS; RULES. (a) The 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 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 26.  Sections 1201.204(a) and (c), Occupations Code,   are amended to read as follows:          (a)  A manufacturer's certificate must show:                (1)  on a form prescribed by the director, the original   transfer of a manufactured home from the manufacturer to the   retailer; and                (2)  on a form prescribed by the director, each   subsequent transfer of a manufactured home between retailers and   from retailer to owner, if the transfer from retailer to owner   involves a completed application for the issuance of a statement of   ownership [and location].          (c)  After the first retail sale of a manufactured home, the   retailer must submit the original manufacturer's certificate for   that home to the department. If an application for an initial   statement of ownership is made without the required manufacturer's   certificate and the retailer does not provide it as required, the   department shall, on or before the issuance of the requested   statement of ownership [and location], send written notice to each   party currently reflected on the department's records as having a   recorded lien on the inventory of that retailer with respect to that   home. Failure to include the original manufacturer's certificate   with such an application does not impair a consumer's ability to   obtain, on submittal of an otherwise complete application, a   statement of ownership [and location] free and clear of any liens   other than liens created by or consented to by the consumer.          SECTION 27.  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   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 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 Housing and Community Affairs - Manufactured Housing   Division as provided by law. You may check that division's records   through its website or contact that 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 or for another nonresidential use; and                (12)  any other information the board requires.          SECTION 28.  Sections 1201.2055(a), (c), (d), (e), (g), and   (i), Occupations Code, are amended to read as follows:          (a)  In completing an application for the issuance of a   statement of ownership [and location], an owner of a manufactured   home shall indicate whether the owner elects to treat the home as   [personal property or] real property. An owner may elect to treat a   manufactured home as real property only if the home is attached to:                (1)  real property that is owned by the owner of the   home; or                (2)  land leased to the owner of the home under a   long-term lease, as defined by department rule.          (c)  If the department issues a statement of ownership [and   location] to an owner of a manufactured home treated as personal   property [who has elected to treat a manufactured home as personal   property], the statement of ownership [and location] on file with   the department is evidence of ownership of the home. A lien,   charge, or other encumbrance on a home treated as personal property   may be made only by filing the appropriate document with the   department.          (d)  If an owner elects to treat a manufactured home as real   property, the department shall issue to the owner a [certified]   copy of the statement of ownership [and location] that on its face   reflects that the owner has elected to treat the manufactured home   as real property at the location listed on the statement. Not later   than the 60th day after the date the department issues a [certified]   copy of the statement of ownership [and location] to the owner, the   owner must:                (1)  file the [certified] copy in the real property   records of the county in which the home is located; and                (2)  notify the department and the chief appraiser of   the applicable appraisal district that the [certified] copy has   been filed.          (e)  A real property election for a manufactured home is not   considered to be perfected until a [certified] copy of the   statement of ownership [and location] has been filed and the   department and the chief appraiser of the applicable appraisal   district have been notified of the filing as provided by Subsection   (d).          (g)  After a real property election is perfected under   Subsection (e):                (1)  the home is considered to be real property for all   purposes; and                (2)  no additional issuance of a statement of ownership   [and location] is required with respect to the manufactured home,   unless:                      (A)  the home is moved from the location specified   on the statement of ownership [and location];                      (B)  the real property election is changed; or                      (C)  the use of the property is changed as   described by Section 1201.216.          (i)  Notwithstanding the 60-day deadline specified in   Subsection (d), if the closing of a mortgage loan to be secured by   real property including the manufactured home is held, the loan is   funded, and a deed of trust covering the real property and all   improvements on the property is recorded and the licensed title   company or attorney who closed the loan failed to complete the   conversion to real property in accordance with this chapter, the   holder or servicer of the loan may apply for a statement of   ownership [and location] electing real property status, obtain a   [certified] copy of the statement of ownership [and location], and   make the necessary filings and notifications to complete such   conversion at any time provided that:                (1)  the record owner of the home, as reflected on the   department's records, has been given at least 60 days' prior written   notice at:                      (A)  the location of the home and, if it is   different, the mailing address of the owner as specified in the   department records; and                      (B)  any other location the holder or servicer   knows or believes, after a reasonable inquiry, to be an address   where the owner may have been or is receiving mail or is an address   of record;                (2)  such notification shall be given by certified   mail; and                (3)  the department by rule shall require evidence that   the holder or servicer requesting such after-the-fact completion of   a real property election has complied with the requirements of this   subsection.          SECTION 29.  The heading to Section 1201.206, Occupations   Code, is amended to read as follows:          Sec. 1201.206.  APPLICATION FOR ISSUANCE OF STATEMENT OF   OWNERSHIP [AND LOCATION].          SECTION 30.  Sections 1201.206(a), (b), (c), (e), (f), (g),   (h), and (k), Occupations Code, are amended to read as follows:          (a)  At the first retail sale of a manufactured home, the   retailer shall provide for the installation of the home and ensure   that the application for the issuance of a statement of ownership   [and location] is properly completed. The consumer shall return   the completed application to the retailer. In accordance with   Section 1201.204, the retailer shall surrender to the department   the original manufacturer's statement of origin at the same time   that the retailer applies for the first statement of ownership [and   location].          (b)  Not later than the 60th day after the date of the retail   sale, the retailer shall provide to the department the completed   application for the issuance of a statement of ownership [and   location]. If for any reason the retailer does not timely comply   with the requirements of this subsection, the consumer may apply   for the issuance of the statement.          (c)  Not later than the 60th day after the date of each   subsequent sale or transfer of a home that is considered to be   personal property, the seller or transferor shall provide to the   department a completed application for the issuance of a new   statement of ownership [and location]. If for any reason the seller   or transferor does not timely comply with the requirements of this   subsection, the consumer may apply for the issuance of the   statement.          (e)  Ownership of a manufactured home does not pass or vest   at a sale or transfer of the home until a completed application for   the issuance of a statement of ownership [and location] is filed   with the department.          (f)  If the owner of a manufactured home relocates the home,   the owner shall apply for the issuance of a new statement of   ownership [and location] not later than the 60th day after the date   the home is relocated. The department shall require that the owner   submit evidence that the home was relocated in accordance with the   requirements of the Texas Department of Motor Vehicles.          (g)  When an application is filed for the issuance of a   statement of ownership [and location] for a used manufactured home   that is not in a retailer's inventory or is being converted from   personal property to real property in accordance with Section   1201.2075 [is filed], a statement from the tax assessor-collector   for the taxing unit having power to tax the manufactured home shall   also be filed with the department. The statement from the tax   assessor-collector must indicate that, with respect to each January   1 occurring in the 18-month period preceding the date of the sale,   there are no perfected and enforceable tax liens on the   manufactured home that have not been extinguished and canceled in   accordance with Section 32.015, Tax Code, or personal property   taxes due on the manufactured home [that may have accrued on each   January 1 that falls within the 18 months before the date of the   sale].          (h)  If a person selling a manufactured home to a consumer   for residential use fails to file with the department the   application for the issuance of a statement of ownership [and   location] and the appropriate filing fee before the 61st day after   the date of the sale, the department may assess a fee of at least   $100 against the seller. The department shall have the authority to   enforce the collection of any fee from the seller through judicial   means. The department shall place on the application for the   issuance of a statement of ownership [and location] the following   legend in a clear and conspicuous manner:          "THE FILING OF AN APPLICATION FOR THE ISSUANCE OF A STATEMENT   OF OWNERSHIP [AND LOCATION] LATER THAN SIXTY (60) DAYS AFTER THE   DATE OF A SALE TO A CONSUMER FOR RESIDENTIAL USE MAY RESULT IN A FEE   OF UP TO ONE HUNDRED DOLLARS ($100.00).  ANY SUCH APPLICATION THAT   IS SUBMITTED LATE MAY BE DELAYED UNTIL THE FEE IS PAID IN FULL."          (k)  Notwithstanding any provision in this chapter to the   contrary, if a person has acquired a manufactured home and the owner   of record or any intervening owners of liens or equitable interests   cannot be located to assist in documenting the chain of title, the   department may issue a statement of ownership [and location] to the   person claiming ownership if the person can provide a supporting   affidavit describing the chain of title and such reasonable   supporting proof as the director may require.          SECTION 31.  The heading to Section 1201.207, Occupations   Code, is amended to read as follows:          Sec. 1201.207.  ISSUANCE OF STATEMENT OF OWNERSHIP [AND   LOCATION].          SECTION 32.  Sections 1201.207(a), (a-1), (b), (c), and (d),   Occupations Code, are amended to read as follows:          (a)  Except as provided for in Subsection (a-1), the   department shall process any completed application for the issuance   of a statement of ownership [and location] not later than the 15th   working day after the date the application is received by the   department.  If the department rejects an application, the   department shall provide a clear and complete explanation of the   reason for the rejection and instructions on how to cure any   defects, if possible.          (a-1)  For the period immediately following June 30 of each   year, the department shall, except for applications relating to new   manufactured homes and applications accompanied by a tax   certificate, cease issuing statements of ownership [and location]   until all tax liens filed with the department before June 30 have   been processed and either recorded or rejected.  During this period   the department will post on its Internet website a notice as to when   it is anticipated that processing statements of ownership [and   location] will resume and when it is anticipated that such   processing will be within the 15-working-day time frame provided by   Subsection (a).          (b)  If the department issues a statement of ownership [and   location] for a manufactured home, the department shall maintain a   record of the issuance in its electronic records and shall mail a   copy to the owner and each lienholder. The department shall make   available to the public on the department's Internet website in a   searchable and downloadable format all ownership and lienholder   information contained on the statement of ownership.          (c)  Except with respect to any change in use, servicing of a   loan on a manufactured home, release of a lien on a manufactured   home by an authorized lienholder, or change in ownership of a lien   on a manufactured home, but subject to Section 1201.2075, if the   department has issued a statement of ownership [and location] for a   manufactured home, the department may issue a subsequent statement   of ownership [and location] for the home only if all parties   reflected in the department's records as having an interest in the   manufactured home give their written consent or release their   interest, either in writing or by operation of law, or the   department has followed the procedures provided by Section   1201.206(k) to document ownership and lien status.  Once the   department issues a statement of ownership [and location], the   department shall not alter the record of the ownership or lien   status, other than to change the record to accurately reflect the   proper owner's or lienholder's identity or to release a lien if an   authorized lienholder files with the department a request for that   release, of a manufactured home for any activity occurring before   the issuance of the statement of ownership [and location] without   either the written permission of the owner of record for the   manufactured home, their legal representative, or a court order.          (d)  Notwithstanding any other provision of this chapter, if   the consumer purchases a new manufactured home from a licensed   retailer in the ordinary course of business, whether or not a   statement of ownership [and location] has been issued for the   manufactured home, the consumer is a bona fide purchaser for value   without notice and is entitled to ownership of the manufactured   home free and clear of all liens and to a statement of ownership   [and location] reflecting the same on payment by the consumer of the   purchase price to the retailer.  If there is an existing lien on the   new manufactured home perfected with the department, the owner of   the lien is entitled to recover the value of the lien from the   retailer.          SECTION 33.  Section 1201.2075, Occupations Code, is amended   to read as follows:          Sec. 1201.2075.  CONVERSION FROM PERSONAL PROPERTY TO REAL   PROPERTY. (a) Except as provided by Subsection (b) or Section   1201.206(k), the department may not issue a statement of ownership   [and location] for a manufactured home that is being converted from   personal property to real property until:                (1)  each lien on the home is released by the   lienholder; or                (2)  each lienholder gives written consent, to be   placed on file with the department.          (b)  The department may issue a statement of ownership [and   location] before the release of any liens or before receiving the   consent of any lienholders as required by this section, or without   receiving the statement required by Section 1201.206(g), if the   department releases a [certified] copy of the statement to:                (1)  a licensed title insurance company that has issued   a commitment to issue a title insurance policy covering all prior   liens on the home in connection with a loan that the title company   has closed; or                (2)  a federally insured financial institution or   licensed attorney who has obtained from a licensed title insurance   company a title insurance policy covering all prior liens on the   home.          SECTION 34.  Section 1201.2076, Occupations Code, is amended   by amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  The department may not issue a statement of ownership   [and location] for a manufactured home that is being converted from   real property to personal property until the department has   inspected the home and determined that it is habitable and:                (1)  each lien, including a tax lien, on the home is   released by the lienholder; or                (2)  each lienholder, including a taxing unit, gives   written consent, to be placed on file with the department.          (a-1)  Notwithstanding Subsection (a), the department may   not require an inspection for habitability before issuing a   statement of ownership with respect to a manufactured home if the   home is being sold to or ownership is otherwise being transferred to   a retailer. The department remains subject to the other   requirements of Subsection (a).          SECTION 35.  Section 1201.208, Occupations Code, is amended   to read as follows:          Sec. 1201.208.  PAYMENT OF TAXES REQUIRED FOR ISSUANCE OF   STATEMENT OF OWNERSHIP [AND LOCATION]. (a) Any licensee who sells   or [,] exchanges[, or lease-purchases] a new manufactured home to   any consumer is responsible for the payment of all required sales   and use tax on such home.          (b)  If it is determined that a new manufactured home was   sold or [,] exchanged[, or lease-purchased] without the required   sales and use tax being paid, the payment shall be made from the   fund, up to the available penal amount of the licensee's bond or the   remaining balance of the security for the license, and a claim for   reimbursement shall be filed with the licensee's surety or the   amount deducted from the security for the license.          SECTION 36.  Section 1201.209, Occupations Code, is amended   to read as follows:          Sec. 1201.209.  GROUNDS FOR REFUSAL TO ISSUE OR FOR   SUSPENSION OR REVOCATION OF STATEMENT OF OWNERSHIP [AND LOCATION].   The department may not refuse to issue a statement of ownership [and   location] and may not suspend or revoke a statement of ownership   [and location] unless:                (1)  the application for issuance of the statement of   ownership [and location] contains a false or fraudulent statement,   the applicant failed to provide information required by the   director, or the applicant is not entitled to issuance of the   statement of ownership [and location];                (2)  the director has reason to believe that the   manufactured home is stolen or unlawfully converted, or the   issuance of a statement of ownership [and location] would defraud   the owner or a lienholder of the manufactured home;                (3)  the director has reason to believe that the   manufactured home is salvaged, and an application for the issuance   of a new statement of ownership [and location] that indicates that   the home is salvaged has not been filed;                (4)  the required fee has not been paid;                (5)  the state sales and use tax has not been paid in   accordance with Chapter 158, Tax Code, and Section 1201.208; or                (6)  a tax lien was filed and recorded under Section   1201.219 and the lien has not been extinguished.          SECTION 37.  The heading to Section 1201.210, Occupations   Code, is amended to read as follows:          Sec. 1201.210.  PROCEDURE FOR REFUSAL TO ISSUE OR SUSPENSION   OR REVOCATION OF STATEMENT OF OWNERSHIP [AND LOCATION].          SECTION 38.  Section 1201.210(a), Occupations Code, is   amended to read as follows:          (a)  If the director refuses to issue or suspends or revokes   a statement of ownership [and location], the director shall give,   by certified mail, written notice of that action to:                (1)  the seller and purchaser or transferor and   transferee, as applicable; and                (2)  the holder of a lien or security interest of   record.          SECTION 39.  Section 1201.212, Occupations Code, is amended   to read as follows:          Sec. 1201.212.  TRANSFER OF OWNERSHIP BY OPERATION OF LAW.   (a) If the ownership of a manufactured home in this state is   transferred by inheritance, devise, or bequest, by bankruptcy,   receivership, judicial sale, or other involuntary divestiture of   ownership, or by any other operation of law, the department shall   issue a new statement of ownership [and location] after receiving a   [certified] copy of:                (1)  the order or bill of sale from an officer making a   judicial sale;                (2)  the order appointing a temporary administrator;                (3)  the probate proceedings;                (4)  the letters testamentary or the letters of   administration; or                (5)  if administration of an estate is not necessary,   an affidavit by all of the heirs at law showing:                      (A)  that administration is not necessary; and                      (B)  the name in which the statement of ownership   [and location] should be issued.          (b)  The department may issue a new statement of ownership   [and location] in the name of the purchaser at a foreclosure sale:                (1)  for a lien or security interest foreclosed   according to law by nonjudicial means, if the lienholder or secured   party files an affidavit showing the nonjudicial foreclosure   according to law; or                (2)  for a foreclosed constitutional or statutory lien,   if the person entitled to the lien files an affidavit showing the   creation of the lien and the resulting divestiture of title   according to law.          (c)  The department shall issue a new statement of ownership   [and location] to a survivor if:                (1)  an agreement providing for a right of survivorship   is signed by two or more eligible persons, as determined under   Section 1201.213; and                (2)  on the death of one of the persons, the department   is provided with a copy of the death certificate of that person.          SECTION 40.  Section 1201.213(b), Occupations Code, is   amended to read as follows:          (b)  If the statement of ownership [and location] is being   issued in connection with the sale of the home, the seller is not   eligible to sign a right of survivorship agreement under this   subchapter unless the seller is the child, grandchild, parent,   grandparent, or sibling of each other person signing the agreement.   A family relationship required by this subsection may be a   relationship established by adoption.          SECTION 41.  Section 1201.214, Occupations Code, is amended   to read as follows:          Sec. 1201.214. DOCUMENT OF TITLE; CERTIFICATE OF ATTACHMENT.     (a)  Effective September 1, 2003, all outstanding documents of   title or certificates of attachment are considered to be statements   of ownership [and location].          (b)  An owner or lienholder may provide to the department a   document of title or certificate of attachment and any additional   information required by the department and request that the   department issue a statement of ownership [and location] to replace   the document of title or certificate of attachment.  The department   shall mail to the owner or lienholder a copy of the statement of   ownership [and location] issued under this subsection.          SECTION 42.  Section 1201.216, Occupations Code, is amended   to read as follows:          Sec. 1201.216.  CHANGE IN USE. (a) If the owner of a   manufactured home notifies the department that the owner intends to   treat the home as real property or intends to treat the home as a   salvaged manufactured home or reserve the home [its use] for a   business use [purpose] or another nonresidential use [salvage], the   department shall indicate on the statement of ownership [and   location] for the home that:                (1)  the owner of the home has elected to treat the home   as described by this subsection [as real property or to reserve its   use for a business purpose or salvage]; and                (2)  except as provided by Section 1201.2055(h), the   home is no longer a manufactured home for purposes of regulation   under this chapter or of recordation of liens, including tax liens.          (b)  On application and subject to Sections 1201.2076 and   1201.209, the department shall issue for the structure described in   the application a new statement of ownership [and location]   restoring the structure's designation as a manufactured home only   after an inspection and determination that the structure is   habitable as provided by Section 1201.453.          SECTION 43.  Section 1201.217, Occupations Code, is amended   by amending Subsections (b), (d), and (e) and adding Subsections   (d-1) and (g) to read as follows:          (b)  Before declaring a manufactured home abandoned, the   owner of real property on which the home is located must send a   notice of intent to declare the home abandoned to the record owner   of the home, all lienholders at the addresses listed on the home's   statement of ownership [and location] on file with the department,   the tax collector for each taxing unit that imposes ad valorem taxes   on the real property where the home is located, and any intervening   owners of liens or equitable interests.  The notice must include   the address where the home is currently located.  If the person   giving such notice knows that a person to whom the notice is being   given no longer resides and is no longer receiving mail at a known   address, a reasonable effort shall be made to locate the person and   give the person notice at an address where the person is receiving   mail.  Mailing of the notice by certified mail, return receipt   requested, postage prepaid, to the persons required to be notified   by this subsection constitutes conclusive proof of compliance with   this subsection.          (d)  If the manufactured home remains on the real property   for at least 45 days after the date the notice is postmarked:                (1)  all liens on the home are extinguished; and                (2)  the real property owner may declare the home   abandoned and may apply to the department for a statement of   ownership [and location] listing the real property owner as the   owner of the manufactured home.          (d-1)  When applying for a statement of ownership under this   section, the real property owner shall include with the application   an affidavit stating that:                (1)  the person owns the real property where the   manufactured home is located; and                (2)  the name of the person to whom title to the home   will be transferred under this section is the same name that is   listed in the real property or tax records indicating the current   ownership of the real property.          (e)  A new statement of ownership [and location] issued by   the department under this section transfers, free of any liens, if   there is evidence of United States Postal Service return receipt   from all lienholders, title to the manufactured home to the real   property owner.          (g)  Notwithstanding Subsection (f), an owner of real   property on which a manufactured home has been abandoned may apply   for a new statement of ownership with respect to a home that was   previously declared abandoned and then resold and abandoned again.          SECTION 44.  Section 1201.219(h), Occupations Code, is   amended to read as follows:          (h)  The department shall remove from a manufactured home's   statement of ownership [and location] a reference to any tax lien   delinquent more than four years for which no suit has been timely   filed in accordance with Section 33.05(a)(1), Tax Code, if:                (1)  a tax collector confirms no suit has been filed; or                (2)  the department:                      (A)  has submitted to a tax collector two requests   under Subsection (g) sent not fewer than 15 days apart; and                      (B)  has not received any response from the tax   collector before the 60th day after the tax collector's receipt of   the second request.          SECTION 45.  Section 1201.220, Occupations Code, is amended   to read as follows:          Sec. 1201.220.  REPORT TO CHIEF APPRAISER. (a) The   department shall make available in electronic format, or in   hard-copy format on request, to each chief appraiser of an   appraisal district in this state a monthly report that, for each   manufactured home reported as having been installed during the   preceding month in the county for which the district was   established and for each manufactured home previously installed in   the county for which a transfer of ownership was recorded by the   issuance of a statement of ownership [and location] during the   preceding month, lists:                (1)  the name of the owner of the home;                (2)  the name of the manufacturer of the home, if   available;                (3)  the model designation of the home, if available;                (4)  the identification number of each section or   module of the home;                (5)  the address or location where the home was   reported as installed; and                (6)  the reported date of the installation of the home.          (b)  The department shall make the report required by this   section available to the public on the department's Internet   website in a searchable and downloadable format.           SECTION 46.  Section 1201.221(b), Occupations Code, is   amended to read as follows:          (b)  A request under Subsection (a) must contain:                (1)  the name of the owner of the home as reflected on   the statement of ownership [and location]; or                (2)  the identification number of the home.          SECTION 47.  Section 1201.222(a), Occupations Code, is   amended to read as follows:          (a)  A manufactured home is treated as real property only if:                (1)  the owner of the home has elected to treat the home   as real property as provided by Section 1201.2055; and                (2)  a [certified] copy of the statement of ownership   [and location] for the home has been filed in the real property   records of the county in which the home is located.          SECTION 48.  Section 1201.255(a), Occupations Code, is   amended to read as follows:          (a)  Except as authorized under Section 1201.252,   manufactured housing that is installed must be installed in   compliance with the standards and rules adopted and orders issued   by the department. An uninstalled manufactured home may not be   occupied for any purpose other than to view the home on a retailer's   sales lot.          SECTION 49.  Section 1201.358(d), Occupations Code, is   amended to read as follows:          (d)  A manufacturer, retailer, or installer entitled to   indemnification under this section is a consumer for purposes of   Subchapter I and may recover actual damages from the manufactured   homeowner consumer claims program [trust fund].          SECTION 50.  Section 1201.360(a), Occupations Code, is   amended to read as follows:          (a)  The seller of real property to which a new HUD-code   manufactured home is permanently attached may give the initial   purchaser a written warranty that combines the manufacturer's   warranty and the retailer's warranty required by this subchapter   if:                (1)  the statement of ownership [and location] reflects   that the owner has elected to treat the home as real property;                (2)  the home is actually located where the statement   of ownership [and location] reflects that it is located; and                (3)  a [certified] copy of the statement of ownership   [and location] has been filed in the real property records for the   county in which the home is located.          SECTION 51.  The heading to Subchapter I, Chapter 1201,   Occupations Code, is amended to read as follows:   SUBCHAPTER I. MANUFACTURED HOMEOWNER CONSUMER CLAIMS PROGRAM    [HOMEOWNERS' RECOVERY TRUST FUND]          SECTION 52.  Section 1201.401, Occupations Code, is amended   to read as follows:          Sec. 1201.401.  MANUFACTURED HOMEOWNER CONSUMER CLAIMS   PROGRAM [HOMEOWNERS' RECOVERY TRUST FUND]. (a)  The department   shall administer the manufactured homeowner consumer claims   program to provide a remedy for damages resulting from prohibited   conduct by a person licensed under this chapter [homeowners'   recovery trust fund is an account in the general revenue fund].          (b)  The department may make a payment under the manufactured   homeowner consumer claims program only after all other departmental   operating expenses are sufficiently funded.          SECTION 53.  Section 1201.404, Occupations Code, is amended   to read as follows:          Sec. 1201.404.  CONSUMER COMPENSATION. (a) Except as   otherwise provided by Subchapter C, a payment made under the   manufactured homeowner consumer claims program [the trust fund]   shall be paid directly to a consumer or, at the director's option,   to a third party on behalf of a consumer to compensate a consumer   who sustains actual damages resulting from an unsatisfied claim   against a licensed manufacturer, retailer, broker, or installer if   the unsatisfied claim results from a violation of:                (1)  this chapter;                (2)  a rule adopted by the director;                (3)  the National Manufactured Housing Construction   and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);                (4)  a rule or regulation of the United States   Department of Housing and Urban Development; or                (5)  Subchapter E, Chapter 17, Business & Commerce   Code.          (b)  The department is [trust fund and the director are] not   liable to the consumer if the manufactured homeowner consumer   claims program [trust fund] does not have the money necessary to pay   the actual damages determined to be payable.  The director shall   record the date and time of receipt of each verified complaint and,   as money becomes available, pay the consumer whose claim is the   earliest by date and time to have been found to be verified and   properly payable.          SECTION 54.  Sections 1201.405(c), (d), (f), and (g),   Occupations Code, are amended to read as follows:          (c)  Under the manufactured homeowner consumer claims   program, the department [The trust fund] is not liable for and the   director may not pay:                (1)  punitive, exemplary, double, or treble damages; or                (2)  damages for pain and suffering, mental anguish,   emotional distress, or other analogous tort claims.          (d)  Notwithstanding other provisions of this subchapter,   this subchapter does not apply to, and a consumer may not recover   through the manufactured homeowner consumer claims program   [against the trust fund] as a result of, a claim against a license   holder that results from a cause of action directly related to the   sale, [lease-purchase,] exchange, brokerage, or installation of a   manufactured home before September 1, 1987.          (f)  Under the manufactured homeowner consumer claims   program, the department [The trust fund] is not liable for and the   director may not pay:                (1)  actual damages to reimburse an affiliate or   related person of a licensee, except when the director issues an   order under Sections 1201.358(b) and (c);                (2)  actual damages to correct matters that are solely   cosmetic in nature;                (3)  for attorney's fees; or                (4)  actual damages to address other matters, unless   the matters involve:                      (A)  a breach of warranty;                      (B)  a failure to return or apply as agreed money   received from a consumer or money for which the consumer was   obligated; [or]                      (C)  the breach of an agreement to provide goods   or services necessary to the safe and habitable use of a   manufactured home such as steps, air conditioning, access to   utilities, or access to sewage and wastewater treatment; or                      (D)  perfected and enforceable tax liens not   extinguished and canceled in accordance with Section 32.015, Tax   Code.          (g)  The board by rule may place reasonable limits on the   costs that may be approved for payment under the manufactured   homeowner consumer claims program [from the trust fund], including   the costs of reassigned warranty work, and require consumers making   claims that may be subject to reimbursement under the manufactured   homeowner consumer claims program [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   board may deem necessary and advisable for the administration of   the manufactured homeowner consumer claims program [trust fund].          SECTION 55.  The heading to Section 1201.406, Occupations   Code, is amended to read as follows:          Sec. 1201.406.  PROCEDURE FOR RECOVERY UNDER MANUFACTURED   HOMEOWNER CONSUMER CLAIMS PROGRAM [FROM TRUST FUND].          SECTION 56.  Section 1201.406(a), Occupations Code, is   amended to read as follows:          (a)  To recover under the manufactured homeowner consumer   claims program [from the trust fund], a consumer must file a   written, sworn complaint in the form required by the director not   later than the second anniversary of:                (1)  the date of the alleged act or omission causing the   actual damages; or                (2)  the date the act or omission is discovered or   should reasonably have been discovered.          SECTION 57.  Sections 1201.409(a) and (c), Occupations Code,   are amended to read as follows:          (a)  Except as otherwise provided by Subchapter C, the   manufactured homeowner consumer claims program [trust fund] shall   be reimbursed by the surety on a bond or from other security filed   under Subchapter C for the amount of a claim that  is paid out under   the manufactured homeowner consumer claims program [of the trust   fund] by the director to a consumer in accordance with this   subchapter.          (c)  If payment to the manufactured homeowner consumer   claims program [trust fund] of a claim is not made by the surety or   from the other security in a timely manner, the attorney general   shall file suit for recovery of the amount due the manufactured   homeowner consumer claims program [trust fund]. Venue for the suit   is in Travis County.          SECTION 58.  Section 1201.410, Occupations Code, is amended   to read as follows:          Sec. 1201.410.  INFORMATION ON RECOVERY UNDER MANUFACTURED   HOMEOWNER CONSUMER CLAIMS PROGRAM [FROM TRUST FUND]. The director   shall prepare information for notifying consumers of their rights   to recover under the manufactured homeowner consumer claims program   [from the trust fund], shall post the information on the   department's website, and shall make printed copies available on   request.          SECTION 59.  Section 1201.451, Occupations Code, is amended   to read as follows:          Sec. 1201.451.  TRANSFER OF GOOD AND MARKETABLE TITLE   REQUIRED. (a) Except as otherwise provided by this subchapter, a   person may not sell or[,] exchange[, or lease-purchase] a used   manufactured home without the appropriate transfer of good and   marketable title to the home.          (b)  Not later than the 60th day after the effective date of   the transfer of ownership or the date the seller or transferor   obtains possession of the necessary and properly executed   documents, the seller or transferor shall forward to the purchaser   or transferee the necessary, executed documents.  If the seller or   transferor fails to forward the documents on a timely basis, the   purchaser or transferee may apply directly for the documents.  On   receipt of the documents, the purchaser or transferee shall apply   for the issuance of a statement of ownership [and location].          SECTION 60.  Section 1201.452(a), Occupations Code, is   amended to read as follows:          (a)  Except as otherwise provided by this subchapter, a   person may not sell or[,] exchange[, or lease-purchase] or   negotiate for the sale or[,] exchange[, or lease-purchase] of a   used manufactured home to a consumer unless the appropriate seal or   label is attached to the home.          SECTION 61.  Section 1201.455, Occupations Code, is amended   to read as follows:          Sec. 1201.455.  WRITTEN DISCLOSURE AND WARRANTY OF   HABITABILITY REQUIRED. (a) Except as otherwise provided by this   subchapter, a person may not sell or[,] exchange[, or   lease-purchase] a used manufactured home to a consumer for use as a   dwelling without providing:                (1)  a written disclosure, on a form not to exceed two   pages prescribed by the department, describing the condition of the   home and of any appliances that are included in the home; and                (2)  a written warranty that the home is and will remain   habitable until the 60th day after the later of the installation   date or the date of the purchase agreement.          (b)  Unless, not later than the 65th day after the later of   the installation date or the date of the sale or[,] exchange[, or   lease-purchase agreement], the consumer notifies the seller in   writing of a defect that makes the home not habitable, any   obligation or liability of the seller under this subchapter is   terminated.  The warranty must conspicuously disclose that notice   requirement to the consumer.          SECTION 62.  Section 1201.456, Occupations Code, is amended   to read as follows:          Sec. 1201.456.  HABITABILITY: EXCEPTION TO WARRANTY   REQUIREMENT. The warranty requirement imposed by Section 1201.455   does not apply to a sale or[,] exchange[, or lease-purchase] of a   used manufactured home from one consumer to another.          SECTION 63.  Section 1201.457, Occupations Code, is amended   to read as follows:          Sec. 1201.457.  HABITABILITY: CHANGE TO OR FROM   NONRESIDENTIAL [BUSINESS] USE OR SALVAGE. (a) If the sale or[,]   exchange[, or lease-purchase] of a used manufactured home is to a   purchaser for the purchaser's business use, the home is not   required to be habitable unless the purchaser discloses to the   retailer in writing at the time of purchase that the purchaser   intends for a person to be present in the home for regularly   scheduled work shifts of not less than eight hours each day. The   purchaser of the home shall file with the department an application   for the issuance of a statement of ownership [and location]   indicating that the home is reserved for a business use.          (a-1)  If the sale or exchange of a used manufactured home is   for the purchaser's nonresidential use other than a business use,   the home is not required to be habitable. The purchaser of the home   shall file with the department an application for the issuance of a   statement of ownership indicating that the home is for a   nonresidential use other than a business use.          (b)  If a used manufactured home is reserved for a business   use or another nonresidential use or is salvaged, a person may not   knowingly allow any person to occupy or use the home as a dwelling   unless the director issues a new statement of ownership [and   location] indicating that the home is no longer reserved for that    [business] use or is no longer salvaged [salvage].  On the   purchaser's application to the department for issuance of a new   statement of ownership [and location], the department shall inspect   the home and, if the department determines that the home is   habitable, issue a new statement of ownership [and location].          SECTION 64.  Section 1201.459(c), Occupations Code, is   amended to read as follows:          (c)  A seal issued to a tax appraiser or tax   assessor-collector is for identification purposes only and does not   imply that:                (1)  the home is habitable; or                (2)  a purchaser of the home at a tax sale may obtain a   new statement of ownership [and location] from the department   without an inspection for habitability.          SECTION 65.  Section 1201.460, Occupations Code, is amended   to read as follows:          Sec. 1201.460.  COMPLIANCE NOT REQUIRED FOR LIENHOLDER. (a)   A holder of a lien recorded on the statement of ownership [and   location] of a manufactured home that has not been converted to real   property who sells or[,] exchanges[, or lease-purchases] a   repossessed manufactured home covered by that statement of   ownership [and location] is not required to comply with this   chapter if the sale or[,] exchange[, or lease-purchase] is:                (1)  to or through a licensed retailer; or                (2)  to a purchaser for the purchaser's business use or   another nonresidential use.          (b)  If the sale or[,] exchange[, or lease-purchase] of the   repossessed manufactured home is to or through a licensed retailer,   the retailer is responsible and liable for compliance with this   chapter and department rules. The lienholder may not be joined as a   party in any litigation relating to the sale or[,] exchange[, or   lease-purchase] of the home.          (c)  If the sale or[,] exchange[, or lease-purchase] of the   repossessed manufactured home is to a purchaser for the purchaser's   business use or another nonresidential use, the lienholder shall   apply to the department for the issuance of a new statement of   ownership [and location] indicating that the home is reserved for a    business use or another nonresidential use.          SECTION 66.  Sections 1201.461(b), (c), (e), (f), and (h),   Occupations Code, are amended to read as follows:          (b)  A person who owns a used manufactured home that is   salvaged shall apply to the director for the issuance of a new   statement of ownership [and location] that indicates that the home   is salvaged.          (c)  If a new manufactured home is salvaged, the retailer   shall remove the label and surrender the label and the   manufacturer's certificate under Section 1201.204 to the director   for issuance of a statement of ownership [and location] that   indicates that the home is salvaged.          (e)  A person may not repair, rebuild, or otherwise refurbish    [alter] a salvaged manufactured home unless the person complies   with the rules of the director relating to rebuilding a salvaged   manufactured home.  For purposes of this subsection, "refurbish"    means any general repairs, improvements, or aesthetic changes to a   manufactured home that do not constitute the rebuilding of a   salvaged manufactured home.          (f)  If a salvaged manufactured home is rebuilt in accordance   with this chapter and the rules of the director, the director shall,   on application, issue a new statement of ownership [and location]   that indicates that the home is no longer salvaged.          (h)  A licensee may not participate in the sale, exchange,   [lease-purchase,] or installation for use as a dwelling of a   manufactured home that is salvage and that has not been repaired in   accordance with this chapter and the department's rules. An act   that is prohibited by this subsection is deemed to be a practice   that constitutes an imminent threat to health or safety and is   subject to the imposition of penalties and other sanctions provided   for by this chapter. A violation of this subsection is a Class B   misdemeanor.          SECTION 67.  Section 1201.504, Occupations Code, is amended   to read as follows:          Sec. 1201.504.  PROHIBITED SALE OR[,] EXCHANGE[, OR   LEASE-PURCHASE]. (a) A manufacturer may not sell or[,] exchange,   [or lease-purchase] or offer to sell or[,] exchange, [or   lease-purchase] a manufactured home to a person in this state who is   not a licensed retailer.          (b)  A retailer may not sell or[,] exchange, [or   lease-purchase] or offer to sell or[,] exchange, [or   lease-purchase] a new HUD-code manufactured home that was   constructed by a manufacturer who was not licensed by the   department at the time of construction.          (c)  A retailer, broker, or salesperson may not sell or[,]   exchange, [or lease-purchase] or offer to sell or [,] exchange, [or   lease-purchase] a manufactured home to a consumer in this state for   use as a dwelling unless the appropriate seal or label is attached   to the home.          SECTION 68.  Sections 1201.512(b) and (c), Occupations Code,   are amended to read as follows:          (b)  Unless the retailer, broker, or salesperson complies   with the requirements of the National Flood Insurance Act of 1968   (42 U.S.C. Section 4001 et seq.), Subchapter I, Chapter 16, Water   Code, and any other applicable local, state, or federal law, and   ensures the consumer's compliance with applicable law by requiring   the evidence described by Subsection (c), a retailer, broker, or   salesperson who sells or[,] exchanges[, or lease-purchases] a new   or used manufactured home to a consumer for use as a permanent   dwelling in this state may not:                (1)  deliver or arrange for the delivery of the home to   a homesite in a special flood hazard area designated by the director   of the Federal Emergency Management Agency;                (2)  install or arrange for the installation of the   home at a homesite in that area; or                (3)  assist the consumer in the delivery or   installation of, or in making arrangements for the delivery or   installation of, the home to or at a homesite in that area.          (c)  Before closing on the acquisition of a new or used   manufactured home for use as a permanent dwelling in this state, a   consumer seeking to acquire the home must provide to the retailer,   broker, or salesperson selling or[,] exchanging[, or   lease-purchasing] the home satisfactory evidence that the home will   not be located, in a manner that violates local, state, or federal   law, on a homesite in a special flood hazard area designated by the   director of the Federal Emergency Management Agency. A consumer   may satisfy the evidentiary requirement of this subsection by   providing the retailer, broker, or salesperson, as applicable, with   a copy of any required permit to install a septic tank on the   homesite.          SECTION 69.  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 or[,] 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 board disclosing that if for any reason the financing   does not close, the consumer may be required to vacate the home.          SECTION 70.  Section 1201.551, Occupations Code, is amended   to read as follows:          Sec. 1201.551.  DENIAL OF LICENSE; DISCIPLINARY ACTION. (a)   The director may deny, permanently revoke, or suspend for a   definite period and specified sales location or geographic area a   license if the director determines that the applicant or license   holder:                (1)  knowingly and wilfully violated this chapter or a   rule adopted or order issued under this chapter;                (2)  unlawfully retained or converted money, property,   or any other thing of value from a consumer in the form of a down   payment, sales or use tax, deposit, or insurance premium;                (3)  failed repeatedly to file with the department a   completed application for a statement of ownership [and location]   before the 61st day after the date of the sale of a manufactured   home as required by Section 1201.206 or the date of the   installation, whichever occurred later;                (4)  failed to give or breached a manufactured home   warranty required by this chapter or by the Federal Trade   Commission;                (5)  engaged in a false, misleading, or deceptive act   or practice as described by Subchapter E, Chapter 17, Business &   Commerce Code;                (6)  failed to provide or file a report required by the   department for the administration or enforcement of this chapter;                (7)  provided false information on an application,   report, or other document filed with the department;                (8)  acquired a criminal record during the five-year   period preceding the application date that, in the opinion of the   director, makes the applicant unfit for licensing;                (9)  failed to file a bond or other security for each   location as required by Subchapter C; [or]                (10)  has had another license issued by this state   revoked or suspended; or                (11)  failed to pay the required fee to obtain or renew   a license.          (b)  The director may suspend or revoke a license if, after   receiving notice of a claim, the license holder or the license   holder's surety fails or refuses to pay a final claim paid under the   manufactured homeowner consumer claims program [from the trust   fund] for which demand for reimbursement was made.          SECTION 71.  Section 1201.6041(a), Occupations Code, is   amended to read as follows:          (a)  Instead of requiring a consumer to apply for   compensation under the manufactured homeowner consumer claims   program [from the trust fund] under Subchapter I, the director may   order a manufacturer, retailer, broker, or installer, as   applicable, to pay a refund directly to a consumer who sustains   actual damages resulting from an unsatisfied claim against a   licensed manufacturer, retailer, broker, or installer if the   unsatisfied claim results from a violation of:                (1)  this chapter;                (2)  a rule adopted by the director;                (3)  the National Manufactured Housing Construction   and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);                (4)  a rule or regulation of the United States   Department of Housing and Urban Development; or                (5)  Subchapter E, Chapter 17, Business & Commerce   Code.          SECTION 72.  Section 347.002(b), Finance Code, is amended to   read as follows:          (b)  To the extent possible, a word or phrase used in this   chapter, other than a term defined by this section, has the meaning   assigned by the Truth in Lending [Part I, Consumer Credit   Protection] Act (15 U.S.C. Section 1601 et seq.) and its subsequent   amendments, as implemented by Regulation Z (12 C.F.R. Part 1026)   [12 C.F.R. 226.1 et seq].          SECTION 73.  Section 347.004(a), Finance Code, is amended to   read as follows:          (a)  A creditor shall comply with all applicable   requirements, including required disclosures, under the Truth in   Lending [Part I, Consumer Credit Protection] Act (15 U.S.C. Section   1601 et seq.) and its subsequent amendments, as implemented by   Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. 226.1 et seq.   (Regulation Z)] adopted under that Act.          SECTION 74.  Section 347.056, Finance Code, is amended to   read as follows:          Sec. 347.056.  AUTHORITY OF CONSUMER CREDIT COMMISSIONER   RELATING TO A CREDIT DOCUMENT. Except as provided by Section   347.004(a), the [The] commissioner may not require the inclusion of   any specific language or a disclosure on a credit document that is   not expressly required by:                (1)  this chapter; or                (2)  a regulation of the Office of the Comptroller of   the Currency [Thrift Supervision].          SECTION 75.  Section 347.155(b), Finance Code, is amended to   read as follows:          (b)  On prepayment, after deduction of an acquisition charge   that does not exceed $50, the consumer is entitled to a refund   credit of the time price differential or interest. The amount of   the credit is computed on an actuarial basis in accordance with   regulations of the Office of the Comptroller of the Currency   [Thrift Supervision] adopted under the Depository Institutions   Deregulation and Monetary Control Act of 1980 (12 U.S.C. Section   1735f-7a [4a] et seq.) for the prepayment of a mortgage loan that is   secured by a first lien on a residential manufactured home.          SECTION 76.  Section 347.356, Finance Code, is amended to   read as follows:          Sec. 347.356.  REQUIREMENTS FOR ACTION TO REPOSSESS,   FORECLOSE, OR ACCELERATE PAYMENT OF ENTIRE DEBT. An action to   repossess a manufactured home, foreclose a lien on a manufactured   home, or accelerate payment of the entire unpaid balance of a credit   transaction must comply with the regulations of the Office of the   Comptroller of the Currency [Thrift Supervision] relating to the   disclosure required for repossession, foreclosure, or acceleration   except in extreme circumstances, including abandonment or   voluntary surrender of the manufactured home.          SECTION 77.  Section 347.455(b), Finance Code, is amended to   read as follows:          (b)  If the real property is included in the cash price of a   credit transaction, the creditor may:                (1)  charge a fee that is ordinarily associated with a   real property transaction and is not prohibited by law, including a   fee that is associated with a real property transaction and   excluded from a finance charge under this chapter by the Consumer   Credit Protection Act (15 U.S.C. Section 1601 et seq.) and   Regulation Z (12 C.F.R. Part 1026) [12 C.F.R. Section 226.1 et seq.   (Regulation Z)] adopted under that Act; and                (2)  elect to treat the manufactured home as if it were   residential real property for all purposes in connection with the   credit transaction by conspicuously disclosing that election to the   consumer.          SECTION 78.  Section 63.005(a), Property Code, is amended to   read as follows:          (a)  A manufactured home becomes a new improvement to the   homestead of a family or of a single adult person upon the filing of   the appropriate statement of ownership [certificate of attachment]   as provided in Chapter 1201, Occupations Code. As such, if the debt   for the manufactured home was contracted for in writing, that debt   is considered to be for work and materials used in constructing new   improvements thereon and thus constitutes a valid lien on the   homestead when the appropriate statement of ownership [certificate   of attachment] is filed in the Official Public Records of Real   Property in the county in which the land is located.          SECTION 79.  Section 1.04(3-a), Tax Code, is amended to read   as follows:                (3-a)  Notwithstanding anything contained herein to   the contrary, a manufactured home is an improvement to real   property only if the owner of the home has elected to treat the   manufactured home as real property pursuant to Section 1201.2055,   Occupations Code, and a [certified] copy of the statement of   ownership [and location] has been filed with the real property   records of the county in which the home is located as provided in   Section 1201.2055(d), Occupations Code.          SECTION 80.  Section 11.432(a), Tax Code, is amended to read   as follows:          (a)  Except as provided by Subsection (a-1), for a   manufactured home to qualify as a residence homestead under Section   11.13, the application for exemption required by Section 11.43 must   be accompanied by:                (1)  a copy of the statement of ownership [and   location] for the manufactured home issued by the manufactured   housing division of the Texas Department of 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;                (2)  a copy of the sales purchase agreement or other   applicable contract or agreement or the payment receipt showing   that the applicant is the purchaser of the manufactured home; or                (3)  a sworn affidavit by the applicant stating that:                      (A)  the applicant is the owner of the   manufactured home;                      (B)  the seller of the manufactured home did not   provide the applicant with the applicable [a purchase] contract or   agreement; and                      (C)  the applicant could not locate the seller   after making a good faith effort.          SECTION 81.  Section 23.127(a), Tax Code, is amended by   amending Subdivisions (3) and (9) to read as follows:                (3)  "Declaration" means a retail manufactured housing   inventory declaration form adopted by the comptroller under this   section in relation to units of manufactured housing considered to   be retail manufactured housing inventory.                (9)  "Retail manufactured housing inventory" means all   units of manufactured housing that a retailer holds for sale at   retail and that are defined as inventory by Section 1201.201,   Occupations Code.          SECTION 82.  Section 23.127, Tax Code, is amended by adding   Subsection (m) to read as follows:          (m)  Except as provided by Subsection (d), a chief appraiser   shall appraise retail manufactured housing inventory in the manner   provided by this section.          SECTION 83.  Section 25.08(e), Tax Code, is amended to read   as follows:          (e)  A manufactured home shall be listed together with the   land on which the home is located if:                (1)  the statement of ownership [and location] for the   home issued under Section 1201.207, Occupations Code, reflects that   the owner has elected to treat the home as real property; and                (2)  a [certified] copy of the statement of ownership   [and location] has been filed in the real property records in the   county in which the home is located.          SECTION 84.  Section 32.03(b), Tax Code, is amended to read   as follows:          (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 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 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.          SECTION 85.  The following provisions of the Occupations Code   are repealed:                (1)  Sections 1201.003(16) and (31);                (2)  Section 1201.058(b);                (3)  Sections 1201.206(i), (i-1), and (j);                (4)  Section 1201.210(d);                (5)  Sections 1201.303(c), (d), (e), (f), and (g);                (6)  Section 1201.402;                (7)  Section 1201.403; and                (8)  Section 1201.611(h).          SECTION 86.  This Act takes effect September 1, 2017.     * * * * *