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


Office of House Bill AnalysisC.S.H.B. 2838
By: Keffer
Urban Affairs
4/19/1999
Committee Report (Substituted)



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.  C.S.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.  

C.S.H.B. 2838 authorizes a manufactured home consumer to notify the
retailer in writing of a need for warranty service or repairs, including
service or repairs under the manufacturer's warranty, and authorizes 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)  Authorizes a consumer, notwithstanding other provisions of this Act,
while the retailer's warranty is in effect, to notify the retailer in
writing of a need for warranty service or repairs, including service or
repairs under the manufacturer's warranty.  Authorizes 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.
Provides that the consumer's rights and remedies under this subsection are
cumulative of any other consumer rights or remedies relating to the
retailer of manufacturer. 

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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 3 (proposed Section 14(o),
Article 5221f, V.T.C.S.) to provide that a consumer is authorized to notify
only the retailer, of the need for warranty service or repairs, and to
specify that such warranty service or repairs include service or repairs
under the manufacturer's warranty.  The substitute also modifies the
original in SECTION 3 to authorize, rather than require, the consumer, if
the retailer does not take appropriate corrective action within a
reasonable time, to notify the Texas Department Housing and Community
Affairs in writing of the retailer's failure to provide the warranty
service or repairs.  Furthermore, the substitute modifies SECTION 3 of the
original to provide that the consumer's rights and remedies under Section
14(o) (Texas Manufactured Housing Standards Act), Article 5221f, V.T.C.S.,
are cumulative of any other consumer rights or remedies relating to the
retailer or manufacturer.