H.B. No. 2706
  relating to the regulation of manufactured homes.
         SECTION 1.  Section 1201.1025, Occupations Code, is amended
  by adding Subsection (a-1) and amending Subsection (c) to read as
         (a-1)  A person is exempt from holding a retailer's license
  as required by Section 1201.101(b) if all manufactured homes sold
  or offered for sale by the person are:
               (1)  located in a manufactured home community, as
  defined by Section 94.001, Property Code; and
               (2)  sold or offered for sale to the same purchaser in
  connection with a sale of the real property of the community.
         (c)  A person who is eligible for an exemption under this
  section remains subject to the other applicable provisions of this
  subchapter and department rules regarding the sale or transfer of
  manufactured homes.
         SECTION 2.  Section 1201.153(c), Occupations Code, is
  amended to read as follows:
         (c)  The notice must:
               (1)  contain the information required by:
                     (A)  the United States Department of Housing and
  Urban Development; or
                     (B)  the board; and
               (2)  be of the type, size, and format required by the
         SECTION 3.  Section 1201.201(5), Occupations Code, is
  amended to read as follows:
               (5)  "Inventory":
                     (A)  has the meaning assigned by Section 9.102,
  Business & Commerce Code; and
                     (B)  does not include manufactured homes used by a
  retailer as equipment, as defined by Section 9.102(a)(33), Business &
  Commerce Code [means new and used manufactured homes that:
                                 [(A)  a retailer has designated as the
  retailer's inventory for sale pursuant to the process implemented
  by the department; and
                                 [(B)  are not used as residential
  dwellings when so designated].
         SECTION 4.  Sections 1201.219(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A lien on manufactured homes in inventory is perfected
  only by filing a financing statement in accordance with Section
  9.310, Business & Commerce Code, and the other provisions of that
  code related to security interests for inventory [the lien with the
  department on the required form].  Once perfected, the lien applies
  to the manufactured homes in the inventory as well as to any
  proceeds from the sale of those homes.  The department may suspend
  or revoke the license of a retailer who fails to satisfy a perfected
  inventory lien.
         (c)  Notwithstanding any other provision of this section or
  any other law, the filing of a financing statement to perfect a lien
  [security agreement] on the inventory of a retailer as described by
  Subsection (a) does not prevent a buyer in the ordinary course of
  business, as defined by Section 1.201, Business & Commerce Code,
  from acquiring good and marketable title free of that lien, and the
  department may not consider that lien for the purpose of title
         SECTION 5.  Section 1201.357(b), Occupations Code, is
  amended to read as follows:
         (b)  If the manufacturer, retailer, or installer, as
  applicable, fails or refuses to provide warranty service in
  accordance with the department order under Section 1201.356, the
  director may [shall] hold an informal meeting at which the
  manufacturer, retailer, or installer must show cause as to why the
  manufacturer's, retailer's, or installer's license should not be
  suspended or revoked and at which the consumer may express the
  person's views.  Following the meeting, the director shall either
  resolve the matter by agreed order, dismiss the matter if no
  violation is found to have occurred, or institute an administrative
  action, which may include license suspension or revocation, the
  assessment of administrative penalties, or a combination of such
         SECTION 6.  This Act takes effect September 1, 2023.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 2706 was passed by the House on April
  14, 2023, by the following vote:  Yeas 120, Nays 23, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2706 on May 25, 2023, by the following vote:  Yeas 127, Nays 12,
  1 present, not voting.
  Chief Clerk of the House   
         I certify that H.B. No. 2706 was passed by the Senate, with
  amendments, on May 21, 2023, by the following vote:  Yeas 29, Nays
  Secretary of the Senate   
  APPROVED: __________________