HBA-CMT H.B. 239 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 239
By: Keffer
Urban Affairs
4/11/2001
Introduced



BACKGROUND AND PURPOSE 

Manufactured home retailers are only required to attend a 20-hour
instruction course in the law and consumer protection regulations as a
prerequisite for a manufactured housing license. No test is required after
the course is completed to obtain the license or registration.  House Bill
239 requires an unlicensed or unregistered manufactured home 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. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Housing and
Community Affairs in SECTION 3 (Article 5221f, V.T.C.S.) of this bill.  

ANALYSIS

House Bill 239 amends the Texas Manufactured Housing Standards Act to
provide that a manufactured home retailer not licensed or registered with
the Texas Department of Housing and Community Affairs (department) or a
predecessor agency as of September 1, 1987 must attend and complete 20
hours of instruction in the law and consumer protection regulations and
must pass an examination based on that instruction as a prerequisite for a
license.  The bill prohibits the director of the department (director) from
issuing a license until the instruction is completed and the examination is
passed.    The bill requires that an additional fee be set and charged to
each retailer who takes the required examination based on that course of
instruction.   

H.B. 239 provides that while the retailer's warranty is in effect, the
consumer is authorized to notify in writing the retailer of the
manufactured homes of any need for warranty service or repairs, including
service or repairs under the manufacturer's warranty.  If the retailer does
not take appropriate corrective action within a reasonable amount of time
as required by department rules, the consumer is authorized to notify the
department in writing of the failure to provide the warranty service or
repairs.  The director is authorized to enter an order directing the
retailer to perform the warranty service or repairs and if appropriate
giving the retailer performing the warranty service or repairs the right of
indemnity against the manufacturer.  The bill provides that the retailer
entitled to indemnity is considered a consumer and is authorized to recover
the retailer's actual damages and attorney's fees from the manufactured
homeowners' recovery fund.   

The bill requires a manufacturer constructing manufactured homes in this
state to use standard materials as designated by the director.        

EFFECTIVE DATE

September 1, 2001.