Texas 2011 - 82nd Regular

Texas Senate Bill SB665 Compare Versions

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1	1	By: Hinojosa, Hegar S.B. No. 665
2	2	(In the Senate - Filed March 9, 2011; March 16, 2011, read
3	3	first time and referred to Committee on Government Organization;
4	4	May 2, 2011, reported favorably by the following vote: Yeas 5,
5	5	Nays 0; May 2, 2011, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the continuation and functions of the Texas Department
11	11	of Housing and Community Affairs.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. GENERAL OPERATIONS AND ADMINISTRATION OF THE TEXAS
14	14	DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
15	15	SECTION 1.01. Section 2306.022, Government Code, is amended
16	16	to read as follows:
17	17	Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
18	18	Department of Housing and Community Affairs is subject to Chapter
19	19	325 (Texas Sunset Act). Unless continued in existence as provided
20	20	by that chapter, the department is abolished and this chapter
21	21	expires September 1, 2023 [2011].
22	22	SECTION 1.02. Subsection (c), Section 2306.043, Government
23	23	Code, is amended to read as follows:
24	24	(c) The notice must:
25	25	(1) include a brief summary of the alleged violation;
26	26	(2) state the amount of the recommended penalty; and
27	27	(3) inform the person of the person's right to a
28	28	hearing before the State Office of Administrative Hearings [board]
29	29	on the occurrence of the violation, the amount of the penalty, or
30	30	both.
31	31	SECTION 1.03. Subsection (a), Section 2306.044, Government
32	32	Code, is amended to read as follows:
33	33	(a) Not later than the 20th day after the date the person
34	34	receives the notice, the person in writing may:
35	35	(1) accept the determination and recommended penalty
36	36	of the director; or
37	37	(2) make a request for a hearing before the State
38	38	Office of Administrative Hearings [board] on the occurrence of the
39	39	violation, the amount of the penalty, or both.
40	40	SECTION 1.04. Section 2306.045, Government Code, is amended
41	41	to read as follows:
42	42	Sec. 2306.045. HEARING. (a) If the person requests a
43	43	hearing before the State Office of Administrative Hearings [board]
44	44	or fails to respond in a timely manner to the notice, the director
45	45	shall set a hearing and give written notice of the hearing to the
46	46	person.
47	47	(b) The State Office of Administrative Hearings [board]
48	48	shall:
49	49	(1) hold the hearing;
50	50	(2) [and] make findings of fact and conclusions of law
51	51	about the occurrence of the violation and the amount of a proposed
52	52	penalty; and
53	53	(3) issue a proposal for decision regarding the
54	54	penalty and provide notice of the proposal to the board.
55	55	(c) Any administrative proceedings relating to the
56	56	imposition of a penalty under Section 2306.041 is a contested case
57	57	under Chapter 2001.
58	58	SECTION 1.05. Subsection (a), Section 2306.046, Government
59	59	Code, is amended to read as follows:
60	60	(a) The board shall issue an order after receiving a
61	61	proposal for decision from the State Office of Administrative
62	62	Hearings under Section 2306.045 [Based on the findings of fact and
63	63	conclusions of law, the board by order may:
64	64	[(1) find that a violation occurred and impose a
65	65	penalty; or
66	66	[(2) find that a violation did not occur].
67	67	SECTION 1.06. Subsection (a), Section 2306.049, Government
68	68	Code, is amended to read as follows:
69	69	(a) Judicial review of a board order imposing an
70	70	administrative penalty is under the substantial evidence rule [by
71	71	trial de novo].
72	72	SECTION 1.07. Section 2306.6721, Government Code, is
73	73	transferred to Subchapter B, Chapter 2306, Government Code,
74	74	redesignated as Section 2306.0504, Government Code, and amended to
75	75	read as follows:
76	76	Sec. 2306.0504 [2306.6721]. DEBARMENT FROM PROGRAM
77	77	PARTICIPATION. (a) The board by rule shall adopt a policy
78	78	providing for the debarment of a person from participation in
79	79	programs administered by the department [the low income housing tax
80	80	credit program as described by this section].
81	81	(b) The department may debar a person from participation in
82	82	a department [the] program on the basis of the person's past failure
83	83	to comply with any condition imposed by the department in the
84	84	administration of its programs [connection with the allocation of
85	85	housing tax credits].
86	86	(c) The department shall debar a person from participation
87	87	in a department [the] program if the person:
88	88	(1) materially or repeatedly violates any condition
89	89	imposed by the department in connection with the administration of
90	90	a department program, including a material or repeated violation of
91	91	a land use restriction agreement regarding a development supported
92	92	with a [allocation of] housing tax credit allocation [credits]; or
93	93	(2) is debarred from participation in federal housing
94	94	programs by the United States Department of Housing and Urban
95	95	Development[; or
96	96	[(3) is in material noncompliance with or has
97	97	repeatedly violated a land use restriction agreement regarding a
98	98	development supported with a housing tax credit allocation].
99	99	(d) A person debarred by the department from participation
100	100	in a department [the] program may appeal the person's debarment to
101	101	the board.
102	102	ARTICLE 2. DISASTER MANAGEMENT PLANNING
103	103	SECTION 2.01. Section 418.106, Government Code, is amended
104	104	by adding Subsection (b-1) to read as follows:
105	105	(b-1) The plan must identify:
106	106	(1) any requirements or procedures that local agencies
107	107	and officials must satisfy or implement to:
108	108	(A) qualify for long-term federal disaster
109	109	recovery funding; and
110	110	(B) prepare for long-term disaster recovery; and
111	111	(2) any appropriate state or local resources available
112	112	to assist the local agencies and officials in satisfying or
113	113	implementing those requirements or procedures.
114	114	SECTION 2.02. Chapter 2306, Government Code, is amended by
115	115	adding Subchapter X-1 to read as follows:
116	116	SUBCHAPTER X-1. LONG-TERM DISASTER RECOVERY PLAN
117	117	Sec. 2306.531. LONG-TERM DISASTER RECOVERY PLAN. (a) The
118	118	department, in consultation with the Texas Department of Rural
119	119	Affairs and the office of the governor, shall develop a long-term
120	120	disaster recovery plan to administer money received for disaster
121	121	recovery from the federal government or any other source.
122	122	(b) In developing and administering the plan:
123	123	(1) the department:
124	124	(A) has primary responsibility over matters
125	125	related to housing; and
126	126	(B) shall consult with:
127	127	(i) existing disaster recovery entities
128	128	established by law or local, state, or federal agreements;
129	129	(ii) local government officials,
130	130	contractors, community advocates, businesses, nonprofit
131	131	organizations, and other stakeholders; and
132	132	(iii) the United States Department of
133	133	Housing and Urban Development to ensure that the plan complies with
134	134	federal law; and
135	135	(2) the Texas Department of Rural Affairs:
136	136	(A) has primary responsibility over matters
137	137	related to infrastructure; and
138	138	(B) shall consult with:
139	139	(i) existing disaster recovery entities
140	140	established by law or local, state, or federal agreements; and
141	141	(ii) local government officials,
142	142	contractors, community advocates, businesses, nonprofit
143	143	organizations, and other stakeholders.
144	144	(c) The plan developed under this section must establish or
145	145	identify:
146	146	(1) a method of distribution of disaster relief
147	147	funding to local areas, subject to modification by the governor
148	148	based on the nature of the disaster;
149	149	(2) guidelines for outreach to program applicants and
150	150	for eligible housing and infrastructure activities;
151	151	(3) eligibility criteria for program applicants;
152	152	(4) housing quality standards;
153	153	(5) priorities for serving local populations;
154	154	(6) procedures for establishing compliance with
155	155	federal requirements;
156	156	(7) procedures for coordination and communication
157	157	among federal, state, and local entities;
158	158	(8) pre-disaster and post-disaster training programs;
159	159	(9) a procedure for each department to compile,
160	160	update, and post on that department's Internet website in advance
161	161	of hurricane season all relevant forms and information for program
162	162	applicants;
163	163	(10) federal and state monitoring and reporting
164	164	requirements, including a list of the types of data that local
165	165	government officials may be required to collect, analyze, and
166	166	report;
167	167	(11) the state information technology systems and
168	168	processes that will be used to administer funds from the federal
169	169	government or any other source;
170	170	(12) a process for identifying elements of disaster
171	171	recovery where coordination between or among state agencies will be
172	172	required; and
173	173	(13) a process for implementing memoranda of
174	174	understanding in areas of disaster recovery where interagency
175	175	coordination will be required.
176	176	(d) The plan established under this section must be updated
177	177	biennially and approved by the governor.
178	178	(e) Biennially, the governor shall designate a state agency
179	179	to be the primary agency in charge of coordinating the distribution
180	180	of long-term disaster recovery funding.
181	181	ARTICLE 3. HOUSING TRUST FUND PROGRAM; LOW INCOME HOUSING TAX
182	182	CREDIT PROGRAM
183	183	SECTION 3.01. Subsection (d-1), Section 2306.111,
184	184	Government Code, is amended to read as follows:
185	185	(d-1) In allocating low income housing tax credit
186	186	commitments under Subchapter DD, the department shall, before
187	187	applying the regional allocation formula prescribed by Section
188	188	2306.1115, set aside for at-risk developments, as defined by
189	189	Section 2306.6702, not less than the minimum amount of housing tax
190	190	credits required under Section 2306.6714. Funds or credits are not
191	191	required to be allocated according to the regional allocation
192	192	formula under Subsection (d) if:
193	193	(1) the funds or credits are reserved for
194	194	contract-for-deed conversions or for set-asides mandated by state
195	195	or federal law and each contract-for-deed allocation or set-aside
196	196	allocation equals not more than 10 percent of the total allocation
197	197	of funds or credits for the applicable program;
198	198	(2) the funds or credits are allocated by the
199	199	department primarily to serve persons with disabilities; or
200	200	(3) the funds are housing trust funds administered by
201	201	the department under Sections 2306.201-2306.206 that are not
202	202	otherwise required to be set aside under state or federal law and do
203	203	not exceed $3 million for each programmed activity during each
204	204	application cycle.
205	205	SECTION 3.02. Section 2306.67022, Government Code, is
206	206	amended to read as follows:
207	207	Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. At
208	208	least biennially, the [The] board [annually] shall adopt a
209	209	qualified allocation plan and a corresponding manual to provide
210	210	information regarding the administration of and eligibility for the
211	211	low income housing tax credit program. The board may adopt the plan
212	212	and manual annually, as considered appropriate by the board.
213	213	SECTION 3.03. Subsection (b), Section 2306.6710,
214	214	Government Code, is amended to read as follows:
215	215	(b) If an application satisfies the threshold criteria, the
216	216	department shall score and rank the application using a point
217	217	system that:
218	218	(1) prioritizes in descending order criteria
219	219	regarding:
220	220	(A) financial feasibility of the development
221	221	based on the supporting financial data required in the application
222	222	that will include a project underwriting pro forma from the
223	223	permanent or construction lender;
224	224	(B) quantifiable community participation with
225	225	respect to the development, evaluated on the basis of a resolution
226	226	concerning the development that is voted on and adopted by the
227	227	governing body of a municipality [written statements from any
228	228	neighborhood organizations on record with the state or county in
229	229	which the development is to be located and] whose boundaries
230	230	contain the proposed development site or by the commissioners court
231	231	of a county whose boundaries contain the proposed development site;
232	232	(C) the income levels of tenants of the
233	233	development;
234	234	(D) the size and quality of the units;
235	235	(E) the commitment of development funding by
236	236	local political subdivisions;
237	237	(F) [the level of community support for the
238	238	application, evaluated on the basis of written statements from the
239	239	state representative or the state senator that represents the
240	240	district containing the proposed development site;
241	241	[(G)] the rent levels of the units;
242	242	(G) [(H)] the cost of the development by square
243	243	foot;
244	244	(H) [(I)] the services to be provided to tenants
245	245	of the development; [and]
246	246	(I) [(J)] whether, at the time the complete
247	247	application is submitted or at any time within the two-year period
248	248	preceding the date of submission, the proposed development site is
249	249	located in an area declared to be a disaster under Section 418.014;
250	250	and
251	251	(J) quantifiable community participation with
252	252	respect to the development, evaluated on the basis of written
253	253	statements from any neighborhood organizations on record with the
254	254	state or county in which the development is to be located and whose
255	255	boundaries contain the proposed development site;
256	256	(2) uses criteria imposing penalties on applicants or
257	257	affiliates who have requested extensions of department deadlines
258	258	relating to developments supported by housing tax credit
259	259	allocations made in the application round preceding the current
260	260	round or a developer or principal of the applicant that has been
261	261	removed by the lender, equity provider, or limited partners for its
262	262	failure to perform its obligations under the loan documents or
263	263	limited partnership agreement; and
264	264	(3) encourages applicants to provide free notary
265	265	public service to the residents of the developments for which the
266	266	allocation of housing tax credits is requested.
267	267	SECTION 3.04. Subsection (b), Section 2306.6718,
268	268	Government Code, is amended to read as follows:
269	269	(b) The department shall provide the elected officials with
270	270	an opportunity to comment on the application during the application
271	271	evaluation process [provided by Section 2306.6710] and shall
272	272	consider those comments in evaluating applications [under that
273	273	section].
274	274	SECTION 3.05. Subsections (a), (b), and (c), Section
275	275	2306.6724, Government Code, are amended to read as follows:
276	276	(a) Regardless of whether the board will adopt the plan
277	277	annually or biennially [Not later than September 30 of each year],
278	278	the department, not later than September 30 of the year preceding
279	279	the year in which the new plan is proposed for use, shall prepare
280	280	and submit to the board for adoption any proposed [the] qualified
281	281	allocation plan required by federal law for use by the department in
282	282	setting criteria and priorities for the allocation of tax credits
283	283	under the low income housing tax credit program.
284	284	(b) Regardless of whether the board has adopted the plan
285	285	annually or biennially, the [The] board shall [adopt and] submit to
286	286	the governor any proposed [the] qualified allocation plan not later
287	287	than November 15 of the year preceding the year in which the new
288	288	plan is proposed for use.
289	289	[(c)] The governor shall approve, reject, or modify and
290	290	approve the proposed qualified allocation plan not later than
291	291	December 1.
292	292	SECTION 3.06. Subchapter DD, Chapter 2306, Government Code,
293	293	is amended by adding Section 2306.6739 to read as follows:
294	294	Sec. 2306.6739. HOUSING TAX CREDITS FINANCED USING FEDERAL
295	295	EMERGENCY FUNDS. (a) To the extent the department receives
296	296	federal emergency funds that must be awarded by the department in
297	297	the same manner as and that are subject to the same limitations as
298	298	awards of housing tax credits, any reference in this chapter to the
299	299	administration of the housing tax credit program applies equally to
300	300	the administration of the federal funds, subject to Subsection (b).
301	301	(b) Notwithstanding any other law, the department may
302	302	establish a separate application procedure for the federal
303	303	emergency funds that does not follow the uniform application cycle
304	304	required by Section 2306.1111 or the deadlines established by
305	305	Section 2306.6724, and any reference in this chapter to an
306	306	application period occurring in relation to those federal emergency
307	307	funds refers to the period beginning on the date the department
308	308	begins accepting applications for the federal funds and continuing
309	309	until all of the available federal funds are awarded.
310	310	ARTICLE 4. MANUFACTURED HOUSING
311	311	SECTION 4.01. Section 2306.6022, Government Code, is
312	312	amended by adding Subsections (e) and (f) to read as follows:
313	313	(e) The division director may allow an authorized employee
314	314	of the division to dismiss a complaint if an investigation
315	315	demonstrates that:
316	316	(1) a violation did not occur; or
317	317	(2) the subject of the complaint is outside the
318	318	division's jurisdiction under this subchapter.
319	319	(f) An employee who dismisses a complaint under Subsection
320	320	(e) shall report the dismissal to the division director and the
321	321	board. The report must include a sufficient explanation of the
322	322	reason the complaint was dismissed.
323	323	SECTION 4.02. Subchapter AA, Chapter 2306, Government Code,
324	324	is amended by adding Section 2306.6023 to read as follows:
325	325	Sec. 2306.6023. NEGOTIATED RULEMAKING AND ALTERNATIVE
326	326	DISPUTE RESOLUTION. (a) The division shall develop and implement
327	327	a policy to encourage the use of:
328	328	(1) negotiated rulemaking procedures under Chapter
329	329	2008 for the adoption of division rules; and
330	330	(2) appropriate alternative dispute resolution
331	331	procedures under Chapter 2009 to assist in the resolution of
332	332	internal and external disputes under the division's jurisdiction.
333	333	(b) The division's procedures relating to alternative
334	334	dispute resolution must conform, to the extent possible, to any
335	335	model guidelines issued by the State Office of Administrative
336	336	Hearings for the use of alternative dispute resolution by state
337	337	agencies.
338	338	(c) The division shall:
339	339	(1) coordinate the implementation of the policy
340	340	adopted under Subsection (a);
341	341	(2) provide training as needed to implement the
342	342	procedures for negotiated rulemaking or alternative dispute
343	343	resolution; and
344	344	(3) collect data concerning the effectiveness of those
345	345	procedures.
346	346	SECTION 4.03. Section 1201.003, Occupations Code, is
347	347	amended by amending Subdivision (17) and adding Subdivision (17-a)
348	348	to read as follows:
349	349	(17) "License holder" or "licensee" means a person who
350	350	holds a department-issued license as a manufacturer, retailer,
351	351	broker, [rebuilder,] salesperson, or installer.
352	352	(17-a) "Management official" means an individual with
353	353	authority over employees involved in the sale of manufactured homes
354	354	at a retail location.
355	355	SECTION 4.04. Subsections (a) and (b), Section 1201.055,
356	356	Occupations Code, are amended to read as follows:
357	357	(a) With guidance from the federal Housing and Community
358	358	Development Act of 1974 (42 U.S.C. Section 5301 et seq.) and from
359	359	the rules and regulations adopted under the National Manufactured
360	360	Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
361	361	Section 5401 et seq.), the board shall establish fees as follows:
362	362	(1) if the department acts as a design approval
363	363	primary inspection agency, a schedule of fees for the review of
364	364	HUD-code manufactured home blueprints and supporting information,
365	365	to be paid by the manufacturer seeking approval of the blueprints
366	366	and supporting information;
367	367	(2) except as provided by Subsection (e), a fee for the
368	368	inspection of each HUD-code manufactured home manufactured or
369	369	assembled in this state, to be paid by the manufacturer of the home;
370	370	(3) a fee for the inspection of an alteration made to
371	371	the structure or plumbing, heating, or electrical system of a
372	372	HUD-code manufactured home, to be charged on an hourly basis and to
373	373	be paid by the person making the alteration;
374	374	(4) a fee for the inspection of the rebuilding of a
375	375	salvaged manufactured home, to be paid by the retailer [rebuilder];
376	376	(5) a fee for the inspection of a used manufactured
377	377	home to determine whether the home is habitable for the issuance of
378	378	a new statement of ownership and location; and
379	379	(6) a fee for the issuance of a seal for a used mobile
380	380	or HUD-code manufactured home.
381	381	(b) In addition to the fees imposed under Subsections
382	382	(a)(2), (3), and (4), a manufacturer or[,] a person making an
383	383	alteration, [or a rebuilder,] as appropriate, shall be charged for
384	384	the actual cost of travel of a department representative to and
385	385	from:
386	386	(1) the manufacturing facility, for an inspection
387	387	described by Subsection (a)(2); or
388	388	(2) the place of inspection, for an inspection
389	389	described by Subsection (a)(3) or (4).
390	390	SECTION 4.05. Section 1201.056, Occupations Code, is
391	391	amended to read as follows:
392	392	Sec. 1201.056. LICENSE FEES. (a) The board shall
393	393	establish fees for the issuance and renewal of licenses for:
394	394	(1) manufacturers;
395	395	(2) retailers;
396	396	(3) brokers;
397	397	(4) salespersons; and
398	398	(5) [rebuilders; and
399	399	[(6)] installers.
400	400	(b) The board by rule may establish a fee for reprinting a
401	401	license issued under this chapter.
402	402	SECTION 4.06. Subsections (e) and (f-1), Section 1201.101,
403	403	Occupations Code, are amended to read as follows:
404	404	(e) A person may not repair, rebuild, or otherwise alter a
405	405	salvaged manufactured home unless the person holds a [rebuilder's
406	406	or] retailer's license.
407	407	(f-1) A retailer may not be licensed to operate more than
408	408	[at a principal location and] one location [or more branch
409	409	locations] under a single license[; provided, however, that a
410	410	separate application must be made for each branch, and each branch
411	411	must be separately bonded].
412	412	SECTION 4.07. Subsections (a) and (b), Section 1201.103,
413	413	Occupations Code, are amended to read as follows:
414	414	(a) An applicant for a license as a manufacturer, retailer,
415	415	broker, [rebuilder,] or installer must file with the director a
416	416	license application containing:
417	417	(1) the legal name, address, and telephone number of
418	418	the applicant and each person who will be a related person at the
419	419	time the requested license is issued;
420	420	(2) all trade names, and the names of all other
421	421	business organizations, under which the applicant does business
422	422	subject to this chapter, the name of each such business
423	423	organization registered with the secretary of state, and the
424	424	address of such business organization;
425	425	(3) the dates on which the applicant became the owner
426	426	and operator of the business; and
427	427	(4) the location to which the license will apply.
428	428	(b) A license application must be accompanied by:
429	429	(1) proof of the security required by this subchapter;
430	430	[and]
431	431	(2) payment of the fee required for issuance of the
432	432	license; and
433	433	(3) the information and the cost required under
434	434	Section 1201.1031.
435	435	SECTION 4.08. Subchapter C, Chapter 1201, Occupations Code,
436	436	is amended by adding Section 1201.1031 to read as follows:
437	437	Sec. 1201.1031. CRIMINAL HISTORY RECORD INFORMATION
438	438	REQUIREMENT FOR LICENSE. (a) The department shall require that an
439	439	applicant for a license or renewal of an unexpired license submit a
440	440	complete and legible set of fingerprints, on a form prescribed by
441	441	the board, to the department or to the Department of Public Safety
442	442	for the purpose of obtaining criminal history record information
443	443	from the Department of Public Safety and the Federal Bureau of
444	444	Investigation. The applicant is required to submit a set of
445	445	fingerprints only once under this section unless a replacement set
446	446	is otherwise needed to complete the criminal history check required
447	447	by this section.
448	448	(b) The department shall refuse to issue a license to or
449	449	renew the license of a person who does not comply with the
450	450	requirement of Subsection (a).
451	451	(c) The department shall conduct a criminal history check of
452	452	each applicant for a license or renewal of a license using
453	453	information:
454	454	(1) provided by the individual under this section; and
455	455	(2) made available to the department by the Department
456	456	of Public Safety, the Federal Bureau of Investigation, and any
457	457	other criminal justice agency under Chapter 411, Government Code.
458	458	(d) The department may enter into an agreement with the
459	459	Department of Public Safety to administer a criminal history check
460	460	required under this section.
461	461	(e) The applicant shall pay the cost of a criminal history
462	462	check under this section.
463	463	SECTION 4.09. Section 1201.104, Occupations Code, is
464	464	amended by amending Subsections (a), (g), and (h) and adding
465	465	Subsections (a-1), (a-2), (a-3), and (a-4) to read as follows:
466	466	(a) Except as provided by Subsection (g) [(e)], as a
467	467	requirement for a manufacturer's, retailer's, broker's,
468	468	installer's, [salvage rebuilder's,] or salesperson's license, a
469	469	person who was not licensed or registered with the department or a
470	470	predecessor agency on September 1, 1987, must, not more than 12
471	471	months before applying for the person's first license under this
472	472	chapter, attend and successfully complete eight [20] hours of
473	473	instruction in the law, including instruction in consumer
474	474	protection regulations.
475	475	(a-1) If the applicant is not an individual, the applicant
476	476	must have at least one related person who satisfies the
477	477	requirements of Subsection (a) [meets this requirement]. If that
478	478	applicant is applying for a retailer's license, the related person
479	479	must be a management official who satisfies the requirements of
480	480	Subsections (a) and (a-2) at each retail location operated by the
481	481	applicant.
482	482	(a-2) An applicant for a retailer's license must complete
483	483	four hours of specialized instruction relevant to the sale,
484	484	exchange, and lease-purchase of manufactured homes. The
485	485	instruction under this subsection is in addition to the instruction
486	486	required under Subsection (a).
487	487	(a-3) An applicant for an installer's license must complete
488	488	four hours of specialized instruction relevant to the installation
489	489	of manufactured homes. The instruction under this subsection is in
490	490	addition to the instruction required under Subsection (a).
491	491	(a-4) An applicant for a joint installer-retailer license
492	492	must comply with Subsections (a-2) and (a-3), for a total of eight
493	493	hours of specialized instruction. The instruction under this
494	494	subsection is in addition to the instruction required under
495	495	Subsection (a).
496	496	(g) Subsections [Subsection] (a), (a-2), (a-3), and (a-4)
497	497	do [does] not apply to a license holder who applies:
498	498	(1) for a license for an additional business location;
499	499	or
500	500	(2) to renew or reinstate a license.
501	501	(h) An examination must be a requirement of successful
502	502	completion of any initial required course of instruction under this
503	503	section. The period needed to complete an examination under this
504	504	subsection may not be used to satisfy the minimum education
505	505	requirements under Subsection (a), (a-2), (a-3), or (a-4).
506	506	SECTION 4.10. Subsection (a), Section 1201.106,
507	507	Occupations Code, is amended to read as follows:
508	508	(a) An applicant for a license or a license holder shall
509	509	file a bond or other security under Section 1201.105 for the
510	510	issuance or renewal of a license in the following amount:
511	511	(1) $100,000 for a manufacturer;
512	512	(2) $50,000 for a retailer [retailer's principal
513	513	location];
514	514	(3) [$50,000 for each retailer's branch location;
515	515	[(4) $50,000 for a rebuilder;
516	516	[(5)] $50,000 for a broker; or
517	517	(4) [(6)] $25,000 for an installer.
518	518	SECTION 4.11. Section 1201.110, Occupations Code, is
519	519	amended to read as follows:
520	520	Sec. 1201.110. SECURITY: DURATION. The department shall
521	521	maintain on file a security other than a bond canceled as provided
522	522	by Section 1201.109(a) until the later of:
523	523	(1) the second anniversary of the date the
524	524	manufacturer, retailer, broker, or installer[, or rebuilder]
525	525	ceases doing business; or
526	526	(2) the date the director determines that a claim does
527	527	not exist against the security.
528	528	SECTION 4.12. Subsection (a), Section 1201.116,
529	529	Occupations Code, is amended to read as follows:
530	530	(a) The department shall renew a license if, before the
531	531	expiration date of the license, the department receives the renewal
532	532	application and payment of the required fee as well as the cost
533	533	required under Section 1201.1031 [before the expiration date of the
534	534	license].
535	535	SECTION 4.13. Section 1201.303, Occupations Code, is
536	536	amended by amending Subsection (b) and adding Subsections (c)
537	537	through (g) to read as follows:
538	538	(b) The department shall establish an installation
539	539	inspection program in which at least 75 [25] percent of installed
540	540	manufactured homes are inspected on a sample basis for compliance
541	541	with the standards and rules adopted and orders issued by the
542	542	director. The program must place priority on inspecting
543	543	multisection homes and homes installed in Wind Zone II counties.
544	544	(c) On or after January 1, 2015, the director by rule shall
545	545	establish a third-party installation inspection program to
546	546	supplement the inspections of the department if the department is
547	547	not able to inspect at least 75 percent of manufactured homes
548	548	installed in each of the calendar years 2012, 2013, and 2014.
549	549	(d) The third-party installation inspection program
550	550	established under Subsection (c) must:
551	551	(1) establish qualifications for third-party
552	552	inspectors to participate in the program;
553	553	(2) require third-party inspectors to register with
554	554	the department before participating in the program;
555	555	(3) establish a biennial registration and renewal
556	556	process for third-party inspectors;
557	557	(4) require the list of registered third-party
558	558	inspectors to be posted on the department's Internet website;
559	559	(5) establish clear processes governing inspection
560	560	fees and payment to third-party inspectors;
561	561	(6) establish the maximum inspection fee that may be
562	562	charged to a consumer;
563	563	(7) require a third-party inspection to occur not
564	564	later than the 14th day after the date of installation of the
565	565	manufactured home;
566	566	(8) establish a process for a retailer or broker to
567	567	contract, as part of the sale of a new or used manufactured home,
568	568	with an independent third-party inspector to inspect the
569	569	installation of the home;
570	570	(9) establish a process for an installer to schedule
571	571	an inspection for each consumer-to-consumer sale where a home is
572	572	reinstalled;
573	573	(10) if a violation is noted in an inspection, require
574	574	the installer to:
575	575	(A) remedy the violations noted;
576	576	(B) have the home reinspected at the installer's
577	577	expense; and
578	578	(C) certify to the department that all violations
579	579	have been corrected;
580	580	(11) require an inspector to report inspection results
581	581	to the retailer, installer, and the department;
582	582	(12) require all persons receiving inspection results
583	583	under Subdivision (11) to maintain a record of the results at least
584	584	until the end of the installation warranty period;
585	585	(13) authorize the department to charge a filing fee
586	586	and an inspection fee for third-party inspections;
587	587	(14) authorize the department to continue to conduct
588	588	no-charge complaint inspections under Section 1201.355 on request,
589	589	but only after an initial installation inspection is completed;
590	590	(15) establish procedures to revoke the registration
591	591	of inspectors who fail to comply with rules adopted under this
592	592	section; and
593	593	(16) require the department to notify the relevant
594	594	state agency if the department revokes an inspector registration
595	595	based on a violation that is relevant to a license issued to the
596	596	applicable person by another state agency.
597	597	(e) Not later than January 1, 2015, the department shall
598	598	submit to the Legislative Budget Board, the Governor's Office of
599	599	Budget, Planning, and Policy, and the standing committee of each
600	600	house of the legislature having primary jurisdiction over housing a
601	601	report concerning whether the department inspected at least 75
602	602	percent of manufactured homes installed in each of the calendar
603	603	years 2012, 2013, and 2014.
604	604	(f) Not later than December 1, 2015, the director shall
605	605	adopt rules as necessary to implement Subsections (c) and (d) if the
606	606	department did not inspect at least 75 percent of manufactured
607	607	homes installed in each of the calendar years 2012, 2013, and 2014.
608	608	Not later than January 1, 2016, the department shall begin
609	609	registering third-party inspectors under Subsections (c) and (d) if
610	610	the department inspections did not occur as described by this
611	611	subsection.
612	612	(g) If the department is not required to establish a
613	613	third-party installation inspection program as provided by
614	614	Subsection (c), Subsections (c), (d), (e), and (f) and this
615	615	subsection expire September 1, 2016.
616	616	SECTION 4.14. Section 1201.357, Occupations Code, is
617	617	amended by adding Subsection (b-1) to read as follows:
618	618	(b-1) As authorized by Section 1201.6041, the director may
619	619	order a manufacturer, retailer, or installer, as applicable, to pay
620	620	a refund directly to a consumer as part of an agreed order described
621	621	by Subsection (b) instead of or in addition to instituting an
622	622	administrative action under this chapter.
623	623	SECTION 4.15. Subsection (d), Section 1201.461,
624	624	Occupations Code, is amended to read as follows:
625	625	(d) A person may not sell, convey, or otherwise transfer to
626	626	a consumer in this state a manufactured home that is salvaged. A
627	627	salvaged manufactured home may be sold only to a licensed retailer
628	628	[or licensed rebuilder].
629	629	SECTION 4.16. Subchapter M, Chapter 1201, Occupations Code,
630	630	is amended by adding Section 1201.6041 to read as follows:
631	631	Sec. 1201.6041. DIRECT CONSUMER COMPENSATION.
632	632	(a) Instead of requiring a consumer to apply for compensation from
633	633	the trust fund under Subchapter I, the director may order a
634	634	manufacturer, retailer, broker, or installer, as applicable, to pay
635	635	a refund directly to a consumer who sustains actual damages
636	636	resulting from an unsatisfied claim against a licensed
637	637	manufacturer, retailer, broker, or installer if the unsatisfied
638	638	claim results from a violation of:
639	639	(1) this chapter;
640	640	(2) a rule adopted by the director;
641	641	(3) the National Manufactured Housing Construction
642	642	and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);
643	643	(4) a rule or regulation of the United States
644	644	Department of Housing and Urban Development; or
645	645	(5) Subchapter E, Chapter 17, Business & Commerce
646	646	Code.
647	647	(b) For purposes of this section, the refund of a consumer's
648	648	actual damages is determined according to Section 1201.405.
649	649	(c) The director shall prepare information for notifying
650	650	consumers of the director's option to order a direct refund under
651	651	this section, shall post the information on the department's
652	652	Internet website, and shall make printed copies available on
653	653	request.
654	654	SECTION 4.17. Subsections (a), (b), and (f), Section
655	655	1201.610, Occupations Code, are amended to read as follows:
656	656	(a) The [If the director has reasonable cause to believe
657	657	that a person licensed under this chapter has violated or is about
658	658	to violate any provision of this chapter or rules adopted by the
659	659	department under this chapter, the] director may issue without
660	660	notice and hearing an order to cease and desist from continuing a
661	661	particular action or an order to take affirmative action, or both,
662	662	to enforce compliance with this chapter if the director has
663	663	reasonable cause to believe that a person has violated or is about
664	664	to violate any provision of this chapter or a rule adopted under
665	665	this chapter.
666	666	(b) The director may issue an order to any person [licensee]
667	667	to cease and desist from violating any law, rule, or written
668	668	agreement or to take corrective action with respect to any such
669	669	violations if the violations in any way are related to the sale,
670	670	financing, or installation of a manufactured home or the providing
671	671	of goods or services in connection with the sale, financing, or
672	672	installation of a manufactured home unless the matter that is the
673	673	basis of such violation is expressly subject to inspection and
674	674	regulation by another state agency; provided, however, that if any
675	675	matter involves a law that is subject to any other administration or
676	676	interpretation by another agency, the director shall consult with
677	677	the person in charge of the day-to-day administration of that
678	678	agency before issuing an order.
679	679	(f) If a person licensed under this chapter fails to pay an
680	680	administrative penalty that has become final or fails to comply
681	681	with an order of the director that has become final, in addition to
682	682	any other remedy provided by law, the director, after not less than
683	683	10 days' notice to the person, may without a prior hearing suspend
684	684	the person's license. The suspension shall continue until the
685	685	person has complied with the cease and desist order or paid the
686	686	administrative penalty. During the period of suspension, the
687	687	person may not perform any act requiring a license under this
688	688	chapter, and all compensation received by the person during the
689	689	period of suspension is subject to forfeiture to the person from
690	690	whom it was received.
691	691	SECTION 4.18. Section 1302.061, Occupations Code, is
692	692	amended to read as follows:
693	693	Sec. 1302.061. MANUFACTURED HOMES. This chapter does not
694	694	apply to a person or entity licensed as a manufacturer, retailer,
695	695	[rebuilder,] or installer under Chapter 1201 and engaged
696	696	exclusively in air conditioning and refrigeration contracting for
697	697	manufactured homes if the installation of air conditioning
698	698	components at the site where the home will be occupied is performed
699	699	by a person licensed under this chapter.
700	700	ARTICLE 5. REPEALER
701	701	SECTION 5.01. Subsection (f), Section 2306.6710,
702	702	Government Code, is repealed.
703	703	ARTICLE 6. TRANSITION PROVISIONS
704	704	SECTION 6.01. (a) Not later than March 1, 2012, the Texas
705	705	Department of Housing and Community Affairs shall develop the plan
706	706	required under Section 2306.531, Government Code, as added by this
707	707	Act.
708	708	(b) Not later than May 1, 2012, the Texas Department of
709	709	Housing and Community Affairs shall obtain the governor's approval
710	710	of the plan developed under Section 2306.531, Government Code, as
711	711	added by this Act.
712	712	(c) Not later than May 1, 2012, the governor shall designate
713	713	a state agency to be the primary agency in charge of coordinating
714	714	the distribution of long-term disaster recovery funding as required
715	715	under Section 2306.531, Government Code, as added by this Act.
716	716	SECTION 6.02. The change in law made by this Act to Sections
717	717	2306.043, 2306.044, 2306.045, 2306.046, and 2306.049, Government
718	718	Code, applies only to a violation committed on or after the
719	719	effective date of this Act. A violation committed before the
720	720	effective date of this Act is governed by the law in effect when the
721	721	violation was committed, and the former law is continued in effect
722	722	for that purpose.
723	723	SECTION 6.03. The change in law made by this Act to Section
724	724	2306.6022, Government Code, applies only to a complaint filed on or
725	725	after the effective date of this Act. A complaint filed before the
726	726	effective date of this Act is governed by the law in effect at the
727	727	time the complaint was filed, and the former law is continued in
728	728	effect for that purpose.
729	729	SECTION 6.04. The changes in law made by this Act to
730	730	Sections 2306.6710 and 2306.6718, Government Code, apply only to an
731	731	application for low income housing tax credits that is submitted to
732	732	the Texas Department of Housing and Community Affairs during an
733	733	application cycle that begins on or after the effective date of this
734	734	Act. An application that is submitted during an application cycle
735	735	that began before the effective date of this Act is governed by the
736	736	law in effect at the time the application cycle began, and the
737	737	former law is continued in effect for that purpose.
738	738	SECTION 6.05. Notwithstanding Subsection (f-1), Section
739	739	1201.101, and Subsection (a), Section 1201.106, Occupations Code,
740	740	as amended by this Act, a retailer licensed to operate one or more
741	741	branch locations on or before the effective date of this Act is not
742	742	required to comply with the changes in law made by those sections
743	743	until March 1, 2012.
744	744	SECTION 6.06. (a) The change in law made by this Act in
745	745	amending Sections 1201.103 and 1201.104, Occupations Code, applies
746	746	only to an application for a license filed with the executive
747	747	director of the manufactured housing division of the Texas
748	748	Department of Housing and Community Affairs on or after the
749	749	effective date of this Act. An application for a license filed
750	750	before that date is governed by the law in effect on the date the
751	751	application was filed, and the former law is continued in effect for
752	752	that purpose.
753	753	(b) The change in law made by this Act in adding Section
754	754	1201.1031, Occupations Code, applies only to an application for a
755	755	license or license renewal filed with the executive director of the
756	756	manufactured housing division of the Texas Department of Housing
757	757	and Community Affairs on or after the effective date of this Act.
758	758	An application for a license or license renewal filed before that
759	759	date is governed by the law in effect on the date the application
760	760	was filed, and the former law is continued in effect for that
761	761	purpose.
762	762	(c) The change in law made by this Act in amending Section
763	763	1201.116, Occupations Code, applies only to an application for a
764	764	license renewal filed with the executive director of the
765	765	manufactured housing division of the Texas Department of Housing
766	766	and Community Affairs on or after the effective date of this Act.
767	767	An application for a license renewal filed before that date is
768	768	governed by the law in effect on the date the application was filed,
769	769	and the former law is continued in effect for that purpose.
770	770	ARTICLE 7. EFFECTIVE DATE
771	771	SECTION 7.01. This Act takes effect September 1, 2011.
772	772	* * * * *