Texas 2013 83rd Regular

Texas Senate Bill SB1673 Introduced / Bill

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                    83R3726 JAM-D
 By: Taylor S.B. No. 1673


 A BILL TO BE ENTITLED
 AN ACT
 relating to the regulation of industrialized housing by the
 manufactured housing division of the Texas Department of Housing
 and Community Affairs; providing a criminal penalty; authorizing
 fees.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 2306.6002, Government Code, is amended
 to read as follows:
 Sec. 2306.6002.  REGULATION AND ENFORCEMENT. The department
 shall administer and enforce Chapters [Chapter] 1201 and 1203,
 Occupations Code, through the division. The Manufactured Housing
 Board and the division director shall exercise authority and
 responsibilities assigned to them under those chapters [that
 chapter].
 SECTION 2.  Section 2267.408(b), Government Code, is amended
 to read as follows:
 (b)  Subsection (a) does not apply to a job order contract or
 an order issued under the contract for industrialized housing
 subject to and approved under Chapter 1203, Occupations Code, or
 industrialized buildings[,] or relocatable educational facilities
 subject to and approved under Chapter 1202, Occupations Code, if
 the contractor employs the services of an architect or engineer who
 approves the documents for the project.
 SECTION 3.  Section 233.151(b), Local Government Code, is
 amended to read as follows:
 (b)  The term does not include a structure that is
 constructed in accordance with Chapter 1201, Occupations Code, or a
 modular home constructed in accordance with Chapter 1203 [1202],
 Occupations Code.
 SECTION 4.  The heading to Chapter 1202, Occupations Code,
 is amended to read as follows:
 CHAPTER 1202. INDUSTRIALIZED [HOUSING AND] BUILDINGS
 SECTION 5.  Section 1202.001(5), Occupations Code, is
 amended to read as follows:
 (5)  "Modular component" means a structural part of
 [housing or] a building constructed at a location other than the
 building site in a manner that prevents the construction from being
 adequately inspected for code compliance at the building site
 without:
 (A)  damage; or
 (B)  removal and reconstruction of a part of the
 housing or building.
 SECTION 6.  Section 1202.051, Occupations Code, is amended
 to read as follows:
 Sec. 1202.051.  COUNCIL MEMBERSHIP. The Texas
 Industrialized Building Code Council consists of 12 members
 appointed by the governor as follows:
 (1)  three members who represent the industrialized
 [housing and] building industry [industries];
 (2)  three members who represent municipal building
 officials from municipalities with a population of more than
 25,000;
 (3)  three members who represent general contractors
 who construct [housing or] buildings on-site;
 (4)  one member who is an engineer licensed in this
 state who acts as a structural engineer;
 (5)  one member who is an engineer licensed in this
 state who acts as an electrical engineer; and
 (6)  one member who is an architect registered in this
 state.
 SECTION 7.  Section 1202.052, Occupations Code, is amended
 to read as follows:
 Sec. 1202.052.  MEMBERSHIP RESTRICTIONS. An engineer or
 architect member of the council may not:
 (1)  be designated as, be employed by, or have an
 ownership interest in, an entity that is a third-party inspector or
 design review agency;
 (2)  have an ownership interest in a business that
 manufactures or builds industrialized [housing or] buildings;
 (3)  in a capacity relating to a matter subject to
 council review, be employed by or be a paid consultant to a
 manufacturer or builder of industrialized [housing or] buildings;
 or
 (4)  be an officer, employee, or paid consultant of a
 trade association that represents the industrialized [housing or]
 building industry.
 SECTION 8.  Section 1202.102, Occupations Code, is amended
 to read as follows:
 Sec. 1202.102.  RULES PROVIDING FOR REGISTRATION AND
 REGULATION. The commission by rule shall provide for registration
 and regulation of manufacturers or builders of industrialized
 [housing or] buildings.
 SECTION 9.  Sections 1202.104(a) and (c), Occupations Code,
 are amended to read as follows:
 (a)  The commission shall set fees, in amounts sufficient to
 cover the costs of the inspections described by this chapter and the
 administration of this chapter, for:
 (1)  the registration of manufacturers or builders of
 industrialized [housing or] buildings;
 (2)  the inspection of industrialized [housing or]
 buildings; and
 (3)  the issuance of decals or insignia required under
 Section 1202.204.
 (c)  The building and permit fees charged by a municipality
 for an inspection of industrialized [housing or] buildings to be
 located in the municipality may not exceed the fees charged for the
 equivalent inspection of a building constructed on-site.
 SECTION 10.  The heading to Subchapter D, Chapter 1202,
 Occupations Code, is amended to read as follows:
 SUBCHAPTER D. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED
 [HOUSING AND] BUILDINGS
 SECTION 11.  Section 1202.151, Occupations Code, is amended
 to read as follows:
 Sec. 1202.151.  BUILDING CODES. (a) In addition to
 complying with Subsection (b) or (c), as applicable, industrialized
 [housing and] buildings must be constructed to meet or exceed the
 requirements and standards of the National Electrical Code,
 published by the National Fire Protection Association, as that code
 existed on January 1, 1985.
 (b)  Industrialized [housing and] buildings erected or
 installed in a municipality must be constructed to meet or exceed
 the requirements and standards of whichever of the following two
 groups of codes is used by the municipality:
 (1)  the Uniform Building Code, Uniform Plumbing Code,
 and Uniform Mechanical Code, published by the International
 Conference of Building Officials, as those codes existed on January
 1, 1985; or
 (2)  the Standard Building Code, Standard Mechanical
 Code, Standard Plumbing Code, and Standard Gas Code, published by
 the Southern Building Code Congress International, Inc., as those
 codes existed on January 1, 1985.
 (c)  Industrialized [housing and] buildings erected or
 installed outside a municipality or in a municipality that does not
 use a building code group described by Subsection (b)(1) or (2) must
 be constructed to meet or exceed the requirements and standards of
 whichever of those building code groups is selected by the
 manufacturer of the [housing or] buildings.
 SECTION 12.  Section 1202.154, Occupations Code, is amended
 to read as follows:
 Sec. 1202.154.  DESIGN REVIEW. To ensure compliance with
 the mandatory building codes, the department or approved design
 review agency shall review all designs, plans, and specifications
 of industrialized [housing and] buildings in accordance with
 council interpretations and instructions.
 SECTION 13.  Section 1202.155(a), Occupations Code, is
 amended to read as follows:
 (a)  The department or approved design review agency shall
 place the council's stamp of approval on each page of the designs,
 plans, and specifications of industrialized [housing and]
 buildings that:
 (1)  meet or exceed the code standards and requirements
 under council interpretations and instructions; and
 (2)  are approved by the department or design review
 agency.
 SECTION 14.  The heading to Section 1202.156, Occupations
 Code, is amended to read as follows:
 Sec. 1202.156.  COUNCIL DETERMINATION OF CERTAIN QUESTIONS
 RELATED TO INDUSTRIALIZED [HOUSING AND] BUILDINGS.
 SECTION 15.  Section 1202.156(a), Occupations Code, is
 amended to read as follows:
 (a)  The council shall determine all questions raised by a
 municipality in connection with the review of designs, plans, and
 specifications of industrialized [housing and] buildings, as
 authorized by Section 1202.252.
 SECTION 16.  Section 1202.201, Occupations Code, is amended
 to read as follows:
 Sec. 1202.201.  INSPECTION PROCEDURES. The council may
 issue instructions to establish procedures for inspecting the
 construction and installation of industrialized [housing and]
 buildings to ensure compliance with approved designs, plans, and
 specifications.
 SECTION 17.  Section 1202.202(a), Occupations Code, is
 amended to read as follows:
 (a)  To ensure compliance with the mandatory building codes
 or approved designs, plans, and specifications, the department
 shall inspect the construction of industrialized [housing and]
 buildings. The executive director may designate approved
 third-party inspectors to perform the inspections subject to the
 rules of the commission.
 SECTION 18.  Sections 1202.203(a) and (c), Occupations Code,
 are amended to read as follows:
 (a)  A municipal building official shall inspect all
 construction involving industrialized [housing and] buildings to
 be located in the municipality to ensure compliance with designs,
 plans, and specifications, including inspection of:
 (1)  the construction of the foundation system; and
 (2)  the erection and installation of the modules or
 modular components on the foundation.
 (c)  An inspection under Subsection (a) shall be conducted[:
 [(1)     at the permanent site, if the inspection is of
 industrialized housing; and
 [(2)]  at the commercial site[, if the inspection is of
 industrialized buildings].
 SECTION 19.  Sections 1202.205(a) and (b), Occupations Code,
 are amended to read as follows:
 (a)  The commission by rule may authorize an inspection of
 industrialized [housing or] buildings constructed in another state
 to be performed by an inspector of the equivalent regulatory agency
 of the other state.
 (b)  The commission by rule may authorize an inspection of
 industrialized [housing or] buildings constructed in this state for
 use in another state.
 SECTION 20.  Section 1202.251(b), Occupations Code, is
 amended to read as follows:
 (b)  Requirements [Except as provided by Section 1202.253,
 requirements] and regulations not in conflict with this chapter or
 with other state law relating to transportation, erection,
 installation, or use of industrialized [housing or] buildings must
 be reasonably and uniformly applied and enforced without
 distinctions as to whether the [housing or] buildings are
 manufactured or are constructed on-site.
 SECTION 21.  The heading to Section 1202.252, Occupations
 Code, is amended to read as follows:
 Sec. 1202.252.  MUNICIPAL REGULATION OF INDUSTRIALIZED
 [HOUSING AND] BUILDINGS.
 SECTION 22.  Section 1202.252(a), Occupations Code, is
 amended to read as follows:
 (a)  A municipality that regulates the on-site construction
 or installation of industrialized [housing and] buildings may:
 (1)  require and review, for compliance with mandatory
 building codes, a complete set of designs, plans, and
 specifications bearing the council's stamp of approval for each
 installation of industrialized [housing or] buildings in the
 municipality;
 (2)  require that all applicable local permits and
 licenses be obtained before construction begins on a building site;
 (3)  require, in accordance with commission rules, that
 all modules or modular components bear an approved decal or
 insignia indicating inspection by the department; and
 (4)  establish procedures for the inspection of:
 (A)  the erection and installation of
 industrialized [housing or] buildings to be located in the
 municipality, to ensure compliance with mandatory building codes
 and commission rules; and
 (B)  all foundation and other on-site
 construction, to ensure compliance with approved designs, plans,
 and specifications.
 SECTION 23.  Section 1202.301(b), Occupations Code, is
 amended to read as follows:
 (b)  A person may not construct, sell or offer to sell, lease
 or offer to lease, or transport over a street or highway of this
 state any industrialized [housing or] building, or modular section
 or component of a modular section, in violation of this chapter or a
 rule of the commission or order of the commission or executive
 director.
 SECTION 24.  Subtitle C, Title 7, Occupations Code, is
 amended by adding Chapter 1203 to read as follows:
 CHAPTER 1203. INDUSTRIALIZED HOUSING
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 1203.001.  GENERAL DEFINITIONS. In this chapter:
 (1)  "Board" means the Manufactured Housing Board
 within the Texas Department of Housing and Community Affairs.
 (2)  "Construction site building" means a commercial
 structure that is:
 (A)  not open to the public; and
 (B)  used for any purpose at a commercial site by a
 person constructing a building, road, bridge, utility, or other
 infrastructure or improvement to real property.
 (3)  "Department" means the Texas Department of Housing
 and Community Affairs acting through the manufactured housing
 division.
 (4)  "Division" means the manufactured housing
 division in the department.
 (5)  "Executive director" means the executive director
 of the manufactured housing division in the Texas Department of
 Housing and Community Affairs.
 (6)  "Modular component" means a structural part of
 housing constructed at a location other than the building site in a
 manner that prevents the construction from being adequately
 inspected for code compliance at the building site without:
 (A)  damage; or
 (B)  removal and reconstruction of a part of the
 housing.
 Sec. 1203.002.  DEFINITION OF INDUSTRIALIZED HOUSING. (a)
 Industrialized housing is a residential structure that is:
 (1)  designed for the occupancy of one or more
 families;
 (2)  constructed in one or more modules or constructed
 using one or more modular components built at a location other than
 the permanent site; and
 (3)  designed to be used as a permanent residential
 structure when the module or the modular component is transported
 to the permanent site and erected or installed on a permanent
 foundation system.
 (b)  Industrialized housing includes the structure's
 plumbing, heating, air conditioning, and electrical systems.
 (c)  Industrialized housing does not include:
 (1)  a residential structure that exceeds three stories
 or 49 feet in height;
 (2)  housing constructed of a sectional or panelized
 system that does not use a modular component; or
 (3)  a ready-built home constructed in a manner in
 which the entire living area is contained in a single unit or
 section at a temporary location for the purpose of selling and
 moving the home to another location.
 SUBCHAPTER B. BOARD POWERS AND DUTIES
 Sec. 1203.051.  RULES; ORDERS. (a) The board shall adopt
 rules and issue orders as necessary to:
 (1)  ensure compliance with the purposes of this
 chapter; and
 (2)  provide for uniform enforcement of this chapter.
 (b)  The board shall adopt rules as appropriate to implement
 the board's actions, decisions, interpretations, and instructions.
 Sec. 1203.052.  RULES PROVIDING FOR REGISTRATION AND
 REGULATION. The board by rule shall provide for registration and
 regulation of manufacturers or builders of industrialized housing.
 Sec. 1203.053.  FEES. (a) The board shall set fees, in
 amounts sufficient to cover the costs of the inspections described
 by this chapter and the administration of this chapter, for:
 (1)  the registration of manufacturers or builders of
 industrialized housing;
 (2)  the inspection of industrialized housing; and
 (3)  the issuance of decals or insignia required under
 Section 1203.154.
 (b)  The fees shall be paid to the comptroller and placed in
 the general revenue fund, except that a fee for an inspection may be
 paid directly to an approved third-party inspector who performs the
 inspection.
 (c)  The building and permit fees charged by a municipality
 for an inspection of industrialized housing to be located in the
 municipality may not exceed the fees charged for the equivalent
 inspection of a building constructed on-site.
 Sec. 1203.054.  APPROVAL OF THIRD-PARTY INSPECTORS AND
 DESIGN REVIEW AGENCIES. (a) The board shall establish criteria for
 the approval of, and approve accordingly, all third-party
 inspectors and design review agencies.
 (b)  The executive director shall recommend qualified
 third-party inspectors and design review agencies to the board.
 (c)  The executive director shall publish a list of all
 approved inspectors and design review agencies.
 Sec. 1203.055.  APPLICABILITY OF OTHER LAW. Sections 51.401
 and 51.404 do not apply to this chapter.
 SUBCHAPTER C. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED
 HOUSING
 Sec. 1203.101.  BUILDING CODES. (a) In addition to
 complying with Subsection (b) or (c), as applicable, industrialized
 housing must be constructed to meet or exceed the requirements and
 standards of the National Electrical Code, published by the
 National Fire Protection Association, as that code existed on
 January 1, 1985.
 (b)  Industrialized housing erected or installed in a
 municipality must be constructed to meet or exceed the requirements
 and standards of whichever of the following two groups of codes is
 used by the municipality:
 (1)  the Uniform Building Code, Uniform Plumbing Code,
 and Uniform Mechanical Code, published by the International
 Conference of Building Officials, as those codes existed on January
 1, 1985; or
 (2)  the Standard Building Code, Standard Mechanical
 Code, Standard Plumbing Code, and Standard Gas Code, published by
 the Southern Building Code Congress International, Inc., as those
 codes existed on January 1, 1985.
 (c)  Industrialized housing erected or installed outside a
 municipality or in a municipality that does not use a building code
 group described by Subsection (b)(1) or (2) must be constructed to
 meet or exceed the requirements and standards of whichever of those
 building code groups is selected by the manufacturer of the
 housing.
 Sec. 1203.102.  BUILDING CODE AMENDMENT. If a code
 described by Section 1203.101 is amended after January 1, 1985, the
 requirements and standards of the amended code shall be used in
 place of the January 1, 1985, edition if the board determines that
 use of the amended code is:
 (1)  in the public interest; and
 (2)  consistent with the purposes of this chapter.
 Sec. 1203.103.  BUILDING CODE AMENDMENT: MUNICIPALITY OR
 OTHER POLITICAL SUBDIVISION. (a) A municipality or other
 political subdivision may not require or enforce, as a prerequisite
 for granting or approving a building or construction permit or
 certificate of occupancy, an amendment to a code described by
 Section 1203.101.
 (b)  On the petition of a local building official and after a
 hearing, the board may require a reasonable amendment to a building
 code group described by Section 1203.101(b)(1) or (2) that the
 board determines to be essential for public health and safety. The
 amendment shall be applied uniformly on a statewide basis.
 Sec. 1203.104.  DESIGN REVIEW. To ensure compliance with
 the mandatory building codes, the department or approved design
 review agency shall review all designs, plans, and specifications
 of industrialized housing in accordance with board interpretations
 and instructions.
 Sec. 1203.105.  BOARD STAMP OF APPROVAL. (a) The department
 or approved design review agency shall place the board's stamp of
 approval on each page of the designs, plans, and specifications of
 industrialized housing that:
 (1)  meet or exceed the code standards and requirements
 under board interpretations and instructions; and
 (2)  are approved by the department or design review
 agency.
 (b)  Each page of the designs, plans, and specifications must
 bear the board's stamp of approval if the designs, plans, and
 specifications satisfy the requirements of Subsection (a)(1) and
 are approved in accordance with Subsection (a)(2).
 Sec. 1203.106.  BOARD DETERMINATION OF CERTAIN QUESTIONS
 RELATED TO INDUSTRIALIZED HOUSING. (a) The board shall determine
 all questions raised by a municipality in connection with the
 review of designs, plans, and specifications of industrialized
 housing, as authorized by Section 1203.202.
 (b)  With reference to the standards and requirements of the
 mandatory building codes, the board shall determine, from an
 engineering performance standpoint, all questions concerning:
 (1)  code equivalency; or
 (2)  alternative materials or methods of construction.
 Sec. 1203.107.  BOARD DECISIONS BINDING. The decisions,
 actions, and interpretations of the board are binding on the
 department, third-party inspectors, design review agencies, and
 municipalities and other political subdivisions.
 SUBCHAPTER D.  INSPECTIONS
 Sec. 1203.151.  INSPECTION PROCEDURES. The board may issue
 instructions to establish procedures for inspecting the
 construction and installation of industrialized housing to ensure
 compliance with approved designs, plans, and specifications.
 Sec. 1203.152.  DEPARTMENT INSPECTIONS. (a) To ensure
 compliance with the mandatory building codes or approved designs,
 plans, and specifications, the department shall inspect the
 construction of industrialized housing.  The executive director may
 designate approved third-party inspectors to perform the
 inspections subject to the rules of the board.
 (b)  Local building officials may witness department
 inspections to enable the local officials to make recommendations
 on inspection procedures to the board.
 Sec. 1203.153.  ON-SITE INSPECTIONS. (a) A municipal
 building official shall inspect all construction involving
 industrialized housing to be located in the municipality to ensure
 compliance with designs, plans, and specifications, including
 inspection of:
 (1)  the construction of the foundation system; and
 (2)  the erection and installation of the modules or
 modular components on the foundation.
 (b)  An approved third-party inspector shall perform on-site
 inspections of industrialized housing to be located outside the
 municipality.
 (c)  An inspection under Subsection (a) shall be conducted at
 the permanent site of the industrialized housing.
 Sec. 1203.154.  RULES PROVIDING FOR DECALS OR INSIGNIA. (a)
 The board by rule shall provide for the placement of decals or
 insignia on each transportable modular section or modular component
 to indicate compliance with the mandatory building codes.
 (b)  The board by rule shall exempt a construction site
 building from the requirements of this section.
 Sec. 1203.155.  RECIPROCITY. (a) The board by rule may
 authorize an inspection of industrialized housing constructed in
 another state to be performed by an inspector of the equivalent
 regulatory agency of the other state.
 (b)  The board by rule may authorize an inspection of
 industrialized housing constructed in this state for use in another
 state.
 (c)  The board shall enter into a reciprocity agreement with
 the equivalent regulatory agency of the other state as necessary to
 implement this section.
 SUBCHAPTER E.  MUNICIPAL AUTHORITY
 Sec. 1203.201.  RESERVATION OF MUNICIPAL AUTHORITY. (a)
 Municipal authority is specifically and entirely reserved to a
 municipality, including, as applicable:
 (1)  land use and zoning requirements;
 (2)  building setback requirements;
 (3)  side and rear yard requirements;
 (4)  site planning and development and property line
 requirements;
 (5)  subdivision control; and
 (6)  landscape architectural requirements.
 (b)  Except as provided by Section 1203.203, requirements
 and regulations not in conflict with this chapter or with other
 state law relating to transportation, erection, installation, or
 use of industrialized housing must be reasonably and uniformly
 applied and enforced without distinctions as to whether the housing
 is manufactured or is constructed on-site.
 Sec. 1203.202.  MUNICIPAL REGULATION OF INDUSTRIALIZED
 HOUSING. (a) A municipality that regulates the on-site
 construction or installation of industrialized housing may:
 (1)  require and review, for compliance with mandatory
 building codes, a complete set of designs, plans, and
 specifications bearing the board's stamp of approval for each
 installation of industrialized housing in the municipality;
 (2)  require that all applicable local permits and
 licenses be obtained before construction begins on a building site;
 (3)  require, in accordance with board rules, that all
 modules or modular components bear an approved decal or insignia
 indicating inspection by the department; and
 (4)  establish procedures for the inspection of:
 (A)  the erection and installation of
 industrialized housing to be located in the municipality, to ensure
 compliance with mandatory building codes and board rules; and
 (B)  all foundation and other on-site
 construction, to ensure compliance with approved designs, plans,
 and specifications.
 (b)  Procedures described by Subsection (a)(4) may require:
 (1)  before occupancy, a final inspection or test in
 accordance with mandatory building codes; and
 (2)  correction of any deficiency identified by the
 test or discovered in the final inspection.
 Sec. 1203.203.  MUNICIPAL REGULATION OF SINGLE-FAMILY AND
 DUPLEX INDUSTRIALIZED HOUSING. (a) Single-family or duplex
 industrialized housing must have all local permits and licenses
 that are applicable to other single-family or duplex dwellings.
 (b)  For purposes of this section, single-family or duplex
 industrialized housing is real property.
 (c)  A municipality may adopt regulations that require
 single-family or duplex industrialized housing to:
 (1)  have a value equal to or greater than the median
 taxable value for each single-family dwelling located within 500
 feet of the lot on which the industrialized housing is proposed to
 be located, as determined by the most recent certified tax
 appraisal roll for each county in which the properties are located;
 (2)  have exterior siding, roofing, roof pitch,
 foundation fascia, and fenestration compatible with the
 single-family dwellings located within 500 feet of the lot on which
 the industrialized housing is proposed to be located;
 (3)  comply with municipal aesthetic standards,
 building setbacks, side and rear yard offsets, subdivision control,
 architectural landscaping, square footage, and other site
 requirements applicable to single-family dwellings; or
 (4)  be securely fixed to a permanent foundation.
 (d)  For purposes of Subsection (c), "value" means the
 taxable value of the industrialized housing and the lot after
 installation of the housing.
 (e)  Except as provided by Subsection (c), a municipality may
 not adopt a regulation under this section that is more restrictive
 for industrialized housing than that required for a new
 single-family or duplex dwelling constructed on-site.
 (f)  This section does not:
 (1)  limit the authority of a municipality to adopt
 regulations to protect historic properties or historic districts;
 or
 (2)  affect deed restrictions.
 SUBCHAPTER F.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES
 Sec. 1203.251.  PROHIBITED PRACTICES. (a) In this section,
 "person" means an individual, partnership, company, corporation,
 association, or other group, however organized.
 (b)  A person may not construct, sell or offer to sell, lease
 or offer to lease, or transport over a street or highway of this
 state any industrialized housing, or modular section or component
 of a modular section, in violation of this chapter or a rule of the
 board or department or order of the board or executive director.
 Sec. 1203.252.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
 In addition to imposing sanctions allowed under Section 51.353, the
 board may deny, permanently revoke, or suspend for a definite
 period and specified location or geographic area a certificate of
 registration if the board finds that the applicant or registrant:
 (1)  provided false information on an application or
 other document filed with the department, division, or board;
 (2)  failed to pay a fee or file a report required by
 the department, division, or board for the administration or
 enforcement of this chapter;
 (3)  engaged in a false, misleading, or deceptive act
 or practice as described by Subchapter E, Chapter 17, Business &
 Commerce Code; or
 (4)  violated:
 (A)  this chapter;
 (B)  a rule adopted by the board or department or
 order issued by the board or the executive director under this
 chapter; or
 (C)  a decision, action, or interpretation of the
 board.
 SUBCHAPTER G.  PENALTIES
 Sec. 1203.301.  CRIMINAL PENALTY. (a) In this section,
 "person" has the meaning assigned by Section 1203.251.
 (b)  A person commits an offense if the person violates this
 chapter or a published rule of the board or department or order of
 the board or the executive director.
 (c)  An offense under this section is a Class A misdemeanor.
 SECTION 25.  Section 623.091, Transportation Code, is
 amended to read as follows:
 Sec. 623.091.  DEFINITION. In this subchapter,
 "manufactured house" means "industrialized building" as defined by
 Chapter 1202, Occupations Code, "industrialized housing" as
 defined by Chapter 1203 [1202], Occupations Code, or "manufactured
 home" as defined by Chapter 1201, Occupations Code. The term
 includes a temporary chassis system or returnable undercarriage
 used for the transportation of a manufactured house and a
 transportable section of a manufactured house that is transported
 on a chassis system or returnable undercarriage and that is
 constructed so that it cannot, without dismantling or destruction,
 be transported within the legal size limits for a motor vehicle.
 SECTION 26.  Section 158.002, Tax Code, is amended to read as
 follows:
 Sec. 158.002.  DEFINITIONS. In this chapter, "manufactured
 home," "manufacturer," "retailer," and "person" have the same
 meanings as they are given by Chapter 1201, Occupations Code. In
 addition, the term "manufactured home" also includes and means
 "industrialized housing" as defined by Chapter 1203 [1202],
 Occupations Code.
 SECTION 27.  The following provisions of the Occupations
 Code are repealed:
 (1)  Section 1202.002;
 (2)  Section 1202.203(b); and
 (3)  Section 1202.253.
 SECTION 28.  On the effective date of this Act:
 (1)  all powers, duties, functions, and activities
 performed by the Texas Department of Licensing and Regulation
 relating to the regulation of industrialized housing immediately
 before the effective date of this Act are transferred to the
 manufactured housing division of the Texas Department of Housing
 and Community Affairs;
 (2)  a rule or form of the Texas Department of Licensing
 and Regulation related to the regulation of industrialized housing
 is a rule or form of the manufactured housing division and remains
 in effect until changed by the division;
 (3)  a reference in law to the Texas Department of
 Licensing and Regulation in relation to the regulation of
 industrialized housing means the manufactured housing division;
 (4)  a reference in a law or rule to the Texas
 Commission of Licensing and Regulation in relation to the
 regulation of industrialized housing means the Manufactured
 Housing Board;
 (5)  a reference in law to the executive director of the
 Texas Department of Licensing and Regulation in relation to the
 regulation of industrialized housing means the executive director
 of the manufactured housing division;
 (6)  a license, permit, or certification in effect that
 was issued by the Texas Department of Licensing and Regulation in
 relation to the regulation of industrialized housing is continued
 in effect as a license, permit, or certification of the
 manufactured housing division;
 (7)  a complaint, investigation, or other proceeding
 pending before the Texas Department of Licensing and Regulation in
 relation to the regulation of industrialized housing is transferred
 without change in status to the manufactured housing division;
 (8)  all obligations, rights, and contracts of the
 Texas Department of Licensing and Regulation in relation to the
 regulation of industrialized housing are transferred to the
 manufactured housing division; and
 (9)  all property, including records and money, in the
 custody of the Texas Department of Licensing and Regulation
 relating to the regulation of industrialized housing and all funds
 appropriated by the legislature for use by the Texas Department of
 Licensing and Regulation for the regulation of industrialized
 housing shall be transferred to the manufactured housing division.
 SECTION 29.  This Act takes effect September 1, 2013.