HBA-GUM H.B. 2838 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2838
By: Keffer
Urban Affairs
4/6/1999
Introduced



BACKGROUND AND PURPOSE 

Manufactured home retailers are only required to attend a 20-hour
instruction course in the law and consumer protection regulations.  No test
is required.  H.B. 2838 requires an unlicensed or unregistered retailer to
attend and complete a course of instruction in the law and consumer
protection regulations, and to pass an examination on that course in order
to receive a license for the sale of manufactured homes.  

H.B. 2838 requires a manufactured home consumer to notify only the retailer
in writing of a need for warranty service or repairs, and requires the
consumer to contact the Texas Department of Housing and Community Affairs
(department) if the retailer does not respond to the request within a
reasonable time.  In addition, this bill requires a manufacturer of
manufactured homes to construct such a home using standard materials
designated by the director of the Texas Department of Housing and Community
Affairs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Article 5221f, V.T.C.S., by amending
Subsection (o) and adding Subsection (s), as follows, 

(o)  Subjects this subsection to the provisions of this Subsection (s).

(s)  Requires a manufactured homes retailer not licensed or registered with
the Texas Department of Housing and Community Affairs (department) or a
predecessor agency as of September 1, 1987, to attend and complete the
instruction in consumer protection regulations described by Subsection (o).
Requires a retailer to pass an examination based on that instruction as a
prerequisite for a license.  Prohibits the department's director (director)
from issuing a retailer's license until the instruction is completed and
the examination is passed. 

SECTION 2.  Amends Section 11(d), Article 5221f, V.T.C.S., to require that
an additional fee be set and charged to each retailer who takes the
required examination based on the course of instruction in the law and
consumer protection regulations. 

SECTION 3.  Amends Section 14, Article 5221f, V.T.C.S., by adding
Subsection (o), as follows: 

(o)  Requires a consumer, notwithstanding other provisions of this Act,
while the retailer's warranty is in effect, to notify only the retailer in
writing of a need for warranty service or repairs.  Requires the consumer,
if the retailer does not take corrective action within reasonable time as
required by department rules, to notify the department in writing of the
retailer's failure to provide the warranty service or repairs.  Authorizes
the director to enter an order directing a retailer to perform the warranty
service or repairs and, if appropriate, giving the retailer the right of
indemnity against the manufacturer.  Provides that a retailer entitled to
indemnification under this subsection is a "consumer" under Sections 13 and
13A.  Authorizes the retailer to recover the retailer's actual damages and
attorney's fees from the manufactured homeowners' recovery fund. 

SECTION 4.  Amends Section 18, Article 5221f, V.T.C.S., by adding
Subsection (j), to require a manufacturer to construct a manufactured home
in this state using standard materials designated by the director. 

SECTION 5.  Makes application of this Act prospective.

SECTION 6.  Effective date: September 1, 1999.

SECTION 7.  Emergency clause.