By: Hancock S.B. No. 1341
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 9.102(53), Business & Commerce Code, is
amended to read as follows:
(53) "Manufactured home" has the meaning assigned by
42 U.S.C. Section 5402(6) [means a structure, transportable in one
or more sections, that, in the traveling mode, is eight body feet or
more in width or 40 body feet or more in length, or, when erected on
site, is 320 or more square feet, and that is built on a permanent
chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities, and
includes the plumbing, heating, air-conditioning, and electrical
systems contained therein. The term includes any structure that
meets all of the requirements of this subdivision except the size
requirements and with respect to which the manufacturer voluntarily
files a certification required by the United States secretary of
housing and urban development and complies with the standards
established under Title 42 of the United States Code].
SECTION 2. Section 1201.003(12), Occupations Code, is
amended to read as follows:
(12) "HUD-code manufactured home" has the meaning
assigned by 42 U.S.C. Section 5402(6). The term[:
[(A) means a structure:
[(i) constructed on or after June 15, 1976,
according to the rules of the United States Department of Housing
and Urban Development;
[(ii) built on a permanent chassis;
[(iii) designed for use as a dwelling with
or without a permanent foundation when the structure is connected
to the required utilities;
[(iv) transportable in one or more
sections; and
[(v) in the traveling mode, at least eight
body feet in width or at least 40 body feet in length or, when
erected on site, at least 320 square feet;
[(B) includes the plumbing, heating, air
conditioning, and electrical systems of the home; and
[(C)] does not include a recreational vehicle as
defined by 24 C.F.R. Section 3282.15(b) [3282.8(g)].
SECTION 3. Section 1201.103(a-1), Occupations Code, is
amended to read as follows:
(a-1) All required records of a licensee under Subsection
(a) are to be maintained at the licensee's principal office or such
other location [within this state] as the licensee may designate. A
licensee may maintain required records under this subsection
electronically if the licensee can produce the record on request by
the department for review.
SECTION 4. 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 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 5. Section 1201.164, Occupations Code, is amended
to read as follows:
Sec. 1201.164. CONSUMER MODIFICATION OR WAIVER OF RIGHT OF
RESCISSION [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 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 consumer may modify or waive the right to rescind [and the
deadlines for disclosures 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.
SECTION 6. This Act takes effect September 1, 2025.