Relating to the regulation of manufactured homes.

89(R) HB 3527 - House Committee Report version - Bill Text

89R3175 JG-D

By: McQueeney

H.B. No. 3527

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.