H.B. No. 2706
AN ACT
relating to the regulation of manufactured homes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1201.1025, Occupations Code, is amended
by adding Subsection (a-1) and amending Subsection (c) to read as
follows:
(a-1) A person is exempt from holding a retailer's license
as required by Section 1201.101(b) if all manufactured homes sold
or offered for sale by the person are:
(1) located in a manufactured home community, as
defined by Section 94.001, Property Code; and
(2) sold or offered for sale to the same purchaser in
connection with a sale of the real property of the community.
(c) A person who is eligible for an exemption under this
section remains subject to the other applicable provisions of this
subchapter and department rules regarding the sale or transfer of
manufactured homes.
SECTION 2. Section 1201.153(c), Occupations Code, is
amended to read as follows:
(c) The notice must:
(1) contain the information required by:
(A) the United States Department of Housing and
Urban Development; or
(B) the board; and
(2) be of the type, size, and format required by the
director.
SECTION 3. Section 1201.201(5), Occupations Code, is
amended to read as follows:
(5) "Inventory":
(A) has the meaning assigned by Section 9.102,
Business & Commerce Code; and
(B) does not include manufactured homes used by a
retailer as equipment, as defined by Section 9.102(a)(33), Business &
Commerce Code [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].
SECTION 4. Sections 1201.219(a) and (c), Occupations Code,
are amended to read as follows:
(a) A lien on manufactured homes in inventory is perfected
only by filing a financing statement in accordance with Section
9.310, Business & Commerce Code, and the other provisions of that
code related to security interests for inventory [the lien with the
department on the required form]. Once perfected, the lien applies
to the manufactured homes in the inventory as well as to any
proceeds from the sale of those homes. The department may suspend
or revoke the license of a retailer who fails to satisfy a perfected
inventory lien.
(c) Notwithstanding any other provision of this section or
any other law, the filing of a financing statement to perfect a lien
[security agreement] on the inventory of a retailer as described by
Subsection (a) does not prevent a buyer in the ordinary course of
business, as defined by Section 1.201, Business & Commerce Code,
from acquiring good and marketable title free of that lien, and the
department may not consider that lien for the purpose of title
issuance.
SECTION 5. Section 1201.357(b), Occupations Code, is
amended to read as follows:
(b) If the manufacturer, retailer, or installer, as
applicable, fails or refuses to provide warranty service in
accordance with the department order under Section 1201.356, the
director may [shall] hold an informal meeting at which the
manufacturer, retailer, or installer must show cause as to why the
manufacturer's, retailer's, or installer's license should not be
suspended or revoked and at which the consumer may express the
person's views. Following the meeting, the director shall either
resolve the matter by agreed order, dismiss the matter if no
violation is found to have occurred, or institute an administrative
action, which may include license suspension or revocation, the
assessment of administrative penalties, or a combination of such
actions.
SECTION 6. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2706 was passed by the House on April
14, 2023, by the following vote: Yeas 120, Nays 23, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2706 on May 25, 2023, by the following vote: Yeas 127, Nays 12,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2706 was passed by the Senate, with
amendments, on May 21, 2023, by the following vote: Yeas 29, Nays
2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor