Texas 2023 - 88th Regular

Texas House Bill HB2706 Compare Versions

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Old	New	Differences
1	1	H.B. No. 2706
2	2
3	3
4	4	AN ACT
5	5	relating to the regulation of manufactured homes.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 1201.1025, Occupations Code, is amended
8	8	by adding Subsection (a-1) and amending Subsection (c) to read as
9	9	follows:
10	10	(a-1) A person is exempt from holding a retailer's license
11	11	as required by Section 1201.101(b) if all manufactured homes sold
12	12	or offered for sale by the person are:
13	13	(1) located in a manufactured home community, as
14	14	defined by Section 94.001, Property Code; and
15	15	(2) sold or offered for sale to the same purchaser in
16	16	connection with a sale of the real property of the community.
17	17	(c) A person who is eligible for an exemption under this
18	18	section remains subject to the other applicable provisions of this
19	19	subchapter and department rules regarding the sale or transfer of
20	20	manufactured homes.
21	21	SECTION 2. Section 1201.153(c), Occupations Code, is
22	22	amended to read as follows:
23	23	(c) The notice must:
24	24	(1) contain the information required by:
25	25	(A) the United States Department of Housing and
26	26	Urban Development; or
27	27	(B) the board; and
28	28	(2) be of the type, size, and format required by the
29	29	director.
30	30	SECTION 3. Section 1201.201(5), Occupations Code, is
31	31	amended to read as follows:
32	32	(5) "Inventory":
33	33	(A) has the meaning assigned by Section 9.102,
34	34	Business & Commerce Code; and
35	35	(B) does not include manufactured homes used by a
36	36	retailer as equipment, as defined by Section 9.102(a)(33), Business &
37	37	Commerce Code [means new and used manufactured homes that:
38	38	[(A) a retailer has designated as the
39	39	retailer's inventory for sale pursuant to the process implemented
40	40	by the department; and
41	41	[(B) are not used as residential
42	42	dwellings when so designated].
43	43	SECTION 4. Sections 1201.219(a) and (c), Occupations Code,
44	44	are amended to read as follows:
45	45	(a) A lien on manufactured homes in inventory is perfected
46	46	only by filing a financing statement in accordance with Section
47	47	9.310, Business & Commerce Code, and the other provisions of that
48	48	code related to security interests for inventory [the lien with the
49	49	department on the required form]. Once perfected, the lien applies
50	50	to the manufactured homes in the inventory as well as to any
51	51	proceeds from the sale of those homes. The department may suspend
52	52	or revoke the license of a retailer who fails to satisfy a perfected
53	53	inventory lien.
54	54	(c) Notwithstanding any other provision of this section or
55	55	any other law, the filing of a financing statement to perfect a lien
56	56	[security agreement] on the inventory of a retailer as described by
57	57	Subsection (a) does not prevent a buyer in the ordinary course of
58	58	business, as defined by Section 1.201, Business & Commerce Code,
59	59	from acquiring good and marketable title free of that lien, and the
60	60	department may not consider that lien for the purpose of title
61	61	issuance.
62	62	SECTION 5. Section 1201.357(b), Occupations Code, is
63	63	amended to read as follows:
64	64	(b) If the manufacturer, retailer, or installer, as
65	65	applicable, fails or refuses to provide warranty service in
66	66	accordance with the department order under Section 1201.356, the
67	67	director may [shall] hold an informal meeting at which the
68	68	manufacturer, retailer, or installer must show cause as to why the
69	69	manufacturer's, retailer's, or installer's license should not be
70	70	suspended or revoked and at which the consumer may express the
71	71	person's views. Following the meeting, the director shall either
72	72	resolve the matter by agreed order, dismiss the matter if no
73	73	violation is found to have occurred, or institute an administrative
74	74	action, which may include license suspension or revocation, the
75	75	assessment of administrative penalties, or a combination of such
76	76	actions.
77	77	SECTION 6. This Act takes effect September 1, 2023.
78	78	______________________________ ______________________________
79	79	President of the Senate Speaker of the House
80	80	I certify that H.B. No. 2706 was passed by the House on April
81	81	14, 2023, by the following vote: Yeas 120, Nays 23, 2 present, not
82	82	voting; and that the House concurred in Senate amendments to H.B.
83	83	No. 2706 on May 25, 2023, by the following vote: Yeas 127, Nays 12,
84	84	1 present, not voting.
85	85	______________________________
86	86	Chief Clerk of the House
87	87	I certify that H.B. No. 2706 was passed by the Senate, with
88	88	amendments, on May 21, 2023, by the following vote: Yeas 29, Nays
89	89	2.
90	90	______________________________
91	91	Secretary of the Senate
92	92	APPROVED: __________________
93	93	Date
94	94	__________________
95	95	Governor