83R3726 JAM-D
	By: Guillen	H.B. No. 2955

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of industrialized housing by the
	manufactured housing division of the Texas Department of Housing
	and Community Affairs; providing a criminal penalty; authorizing
	fees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2306.6002, Government Code, is amended
	to read as follows:
	Sec. 2306.6002.  REGULATION AND ENFORCEMENT. The department
	shall administer and enforce Chapters [Chapter] 1201 and 1203,
	Occupations Code, through the division. The Manufactured Housing
	Board and the division director shall exercise authority and
	responsibilities assigned to them under those chapters [that
	chapter].
	SECTION 2.  Section 2267.408(b), Government Code, is amended
	to read as follows:
	(b)  Subsection (a) does not apply to a job order contract or
	an order issued under the contract for industrialized housing
	subject to and approved under Chapter 1203, Occupations Code, or
	industrialized buildings[,] or relocatable educational facilities
	subject to and approved under Chapter 1202, Occupations Code, if
	the contractor employs the services of an architect or engineer who
	approves the documents for the project.
	SECTION 3.  Section 233.151(b), Local Government Code, is
	amended to read as follows:
	(b)  The term does not include a structure that is
	constructed in accordance with Chapter 1201, Occupations Code, or a
	modular home constructed in accordance with Chapter 1203 [1202],
	Occupations Code.
	SECTION 4.  The heading to Chapter 1202, Occupations Code,
	is amended to read as follows:
	CHAPTER 1202. INDUSTRIALIZED [HOUSING AND] BUILDINGS
	SECTION 5.  Section 1202.001(5), Occupations Code, is
	amended to read as follows:
	(5)  "Modular component" means a structural part of
	[housing or] a building constructed at a location other than the
	building site in a manner that prevents the construction from being
	adequately inspected for code compliance at the building site
	without:
	(A)  damage; or
	(B)  removal and reconstruction of a part of the
	housing or building.
	SECTION 6.  Section 1202.051, Occupations Code, is amended
	to read as follows:
	Sec. 1202.051.  COUNCIL MEMBERSHIP. The Texas
	Industrialized Building Code Council consists of 12 members
	appointed by the governor as follows:
	(1)  three members who represent the industrialized
	[housing and] building industry [industries];
	(2)  three members who represent municipal building
	officials from municipalities with a population of more than
	25,000;
	(3)  three members who represent general contractors
	who construct [housing or] buildings on-site;
	(4)  one member who is an engineer licensed in this
	state who acts as a structural engineer;
	(5)  one member who is an engineer licensed in this
	state who acts as an electrical engineer; and
	(6)  one member who is an architect registered in this
	state.
	SECTION 7.  Section 1202.052, Occupations Code, is amended
	to read as follows:
	Sec. 1202.052.  MEMBERSHIP RESTRICTIONS. An engineer or
	architect member of the council may not:
	(1)  be designated as, be employed by, or have an
	ownership interest in, an entity that is a third-party inspector or
	design review agency;
	(2)  have an ownership interest in a business that
	manufactures or builds industrialized [housing or] buildings;
	(3)  in a capacity relating to a matter subject to
	council review, be employed by or be a paid consultant to a
	manufacturer or builder of industrialized [housing or] buildings;
	or
	(4)  be an officer, employee, or paid consultant of a
	trade association that represents the industrialized [housing or]
	building industry.
	SECTION 8.  Section 1202.102, Occupations Code, is amended
	to read as follows:
	Sec. 1202.102.  RULES PROVIDING FOR REGISTRATION AND
	REGULATION. The commission by rule shall provide for registration
	and regulation of manufacturers or builders of industrialized
	[housing or] buildings.
	SECTION 9.  Sections 1202.104(a) and (c), Occupations Code,
	are amended to read as follows:
	(a)  The commission shall set fees, in amounts sufficient to
	cover the costs of the inspections described by this chapter and the
	administration of this chapter, for:
	(1)  the registration of manufacturers or builders of
	industrialized [housing or] buildings;
	(2)  the inspection of industrialized [housing or]
	buildings; and
	(3)  the issuance of decals or insignia required under
	Section 1202.204.
	(c)  The building and permit fees charged by a municipality
	for an inspection of industrialized [housing or] buildings to be
	located in the municipality may not exceed the fees charged for the
	equivalent inspection of a building constructed on-site.
	SECTION 10.  The heading to Subchapter D, Chapter 1202,
	Occupations Code, is amended to read as follows:
	SUBCHAPTER D. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED
	[HOUSING AND] BUILDINGS
	SECTION 11.  Section 1202.151, Occupations Code, is amended
	to read as follows:
	Sec. 1202.151.  BUILDING CODES. (a) In addition to
	complying with Subsection (b) or (c), as applicable, industrialized
	[housing and] buildings must be constructed to meet or exceed the
	requirements and standards of the National Electrical Code,
	published by the National Fire Protection Association, as that code
	existed on January 1, 1985.
	(b)  Industrialized [housing and] buildings erected or
	installed in a municipality must be constructed to meet or exceed
	the requirements and standards of whichever of the following two
	groups of codes is used by the municipality:
	(1)  the Uniform Building Code, Uniform Plumbing Code,
	and Uniform Mechanical Code, published by the International
	Conference of Building Officials, as those codes existed on January
	1, 1985; or
	(2)  the Standard Building Code, Standard Mechanical
	Code, Standard Plumbing Code, and Standard Gas Code, published by
	the Southern Building Code Congress International, Inc., as those
	codes existed on January 1, 1985.
	(c)  Industrialized [housing and] buildings erected or
	installed outside a municipality or in a municipality that does not
	use a building code group described by Subsection (b)(1) or (2) must
	be constructed to meet or exceed the requirements and standards of
	whichever of those building code groups is selected by the
	manufacturer of the [housing or] buildings.
	SECTION 12.  Section 1202.154, Occupations Code, is amended
	to read as follows:
	Sec. 1202.154.  DESIGN REVIEW. To ensure compliance with
	the mandatory building codes, the department or approved design
	review agency shall review all designs, plans, and specifications
	of industrialized [housing and] buildings in accordance with
	council interpretations and instructions.
	SECTION 13.  Section 1202.155(a), Occupations Code, is
	amended to read as follows:
	(a)  The department or approved design review agency shall
	place the council's stamp of approval on each page of the designs,
	plans, and specifications of industrialized [housing and]
	buildings that:
	(1)  meet or exceed the code standards and requirements
	under council interpretations and instructions; and
	(2)  are approved by the department or design review
	agency.
	SECTION 14.  The heading to Section 1202.156, Occupations
	Code, is amended to read as follows:
	Sec. 1202.156.  COUNCIL DETERMINATION OF CERTAIN QUESTIONS
	RELATED TO INDUSTRIALIZED [HOUSING AND] BUILDINGS.
	SECTION 15.  Section 1202.156(a), Occupations Code, is
	amended to read as follows:
	(a)  The council shall determine all questions raised by a
	municipality in connection with the review of designs, plans, and
	specifications of industrialized [housing and] buildings, as
	authorized by Section 1202.252.
	SECTION 16.  Section 1202.201, Occupations Code, is amended
	to read as follows:
	Sec. 1202.201.  INSPECTION PROCEDURES. The council may
	issue instructions to establish procedures for inspecting the
	construction and installation of industrialized [housing and]
	buildings to ensure compliance with approved designs, plans, and
	specifications.
	SECTION 17.  Section 1202.202(a), Occupations Code, is
	amended to read as follows:
	(a)  To ensure compliance with the mandatory building codes
	or approved designs, plans, and specifications, the department
	shall inspect the construction of industrialized [housing and]
	buildings. The executive director may designate approved
	third-party inspectors to perform the inspections subject to the
	rules of the commission.
	SECTION 18.  Sections 1202.203(a) and (c), Occupations Code,
	are amended to read as follows:
	(a)  A municipal building official shall inspect all
	construction involving industrialized [housing and] buildings to
	be located in the municipality to ensure compliance with designs,
	plans, and specifications, including inspection of:
	(1)  the construction of the foundation system; and
	(2)  the erection and installation of the modules or
	modular components on the foundation.
	(c)  An inspection under Subsection (a) shall be conducted[:
	[(1)     at the permanent site, if the inspection is of
	industrialized housing; and
	[(2)]  at the commercial site[, if the inspection is of
	industrialized buildings].
	SECTION 19.  Sections 1202.205(a) and (b), Occupations Code,
	are amended to read as follows:
	(a)  The commission by rule may authorize an inspection of
	industrialized [housing or] buildings constructed in another state
	to be performed by an inspector of the equivalent regulatory agency
	of the other state.
	(b)  The commission by rule may authorize an inspection of
	industrialized [housing or] buildings constructed in this state for
	use in another state.
	SECTION 20.  Section 1202.251(b), Occupations Code, is
	amended to read as follows:
	(b)  Requirements [Except as provided by Section 1202.253,
	requirements] and regulations not in conflict with this chapter or
	with other state law relating to transportation, erection,
	installation, or use of industrialized [housing or] buildings must
	be reasonably and uniformly applied and enforced without
	distinctions as to whether the [housing or] buildings are
	manufactured or are constructed on-site.
	SECTION 21.  The heading to Section 1202.252, Occupations
	Code, is amended to read as follows:
	Sec. 1202.252.  MUNICIPAL REGULATION OF INDUSTRIALIZED
	[HOUSING AND] BUILDINGS.
	SECTION 22.  Section 1202.252(a), Occupations Code, is
	amended to read as follows:
	(a)  A municipality that regulates the on-site construction
	or installation of industrialized [housing and] buildings may:
	(1)  require and review, for compliance with mandatory
	building codes, a complete set of designs, plans, and
	specifications bearing the council's stamp of approval for each
	installation of industrialized [housing or] buildings in the
	municipality;
	(2)  require that all applicable local permits and
	licenses be obtained before construction begins on a building site;
	(3)  require, in accordance with commission rules, that
	all modules or modular components bear an approved decal or
	insignia indicating inspection by the department; and
	(4)  establish procedures for the inspection of:
	(A)  the erection and installation of
	industrialized [housing or] buildings to be located in the
	municipality, to ensure compliance with mandatory building codes
	and commission rules; and
	(B)  all foundation and other on-site
	construction, to ensure compliance with approved designs, plans,
	and specifications.
	SECTION 23.  Section 1202.301(b), Occupations Code, is
	amended to read as follows:
	(b)  A person may not construct, sell or offer to sell, lease
	or offer to lease, or transport over a street or highway of this
	state any industrialized [housing or] building, or modular section
	or component of a modular section, in violation of this chapter or a
	rule of the commission or order of the commission or executive
	director.
	SECTION 24.  Subtitle C, Title 7, Occupations Code, is
	amended by adding Chapter 1203 to read as follows:
	CHAPTER 1203. INDUSTRIALIZED HOUSING
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 1203.001.  GENERAL DEFINITIONS. In this chapter:
	(1)  "Board" means the Manufactured Housing Board
	within the Texas Department of Housing and Community Affairs.
	(2)  "Construction site building" means a commercial
	structure that is:
	(A)  not open to the public; and
	(B)  used for any purpose at a commercial site by a
	person constructing a building, road, bridge, utility, or other
	infrastructure or improvement to real property.
	(3)  "Department" means the Texas Department of Housing
	and Community Affairs acting through the manufactured housing
	division.
	(4)  "Division" means the manufactured housing
	division in the department.
	(5)  "Executive director" means the executive director
	of the manufactured housing division in the Texas Department of
	Housing and Community Affairs.
	(6)  "Modular component" means a structural part of
	housing constructed at a location other than the building site in a
	manner that prevents the construction from being adequately
	inspected for code compliance at the building site without:
	(A)  damage; or
	(B)  removal and reconstruction of a part of the
	housing.
	Sec. 1203.002.  DEFINITION OF INDUSTRIALIZED HOUSING. (a)
	Industrialized housing is a residential structure that is:
	(1)  designed for the occupancy of one or more
	families;
	(2)  constructed in one or more modules or constructed
	using one or more modular components built at a location other than
	the permanent site; and
	(3)  designed to be used as a permanent residential
	structure when the module or the modular component is transported
	to the permanent site and erected or installed on a permanent
	foundation system.
	(b)  Industrialized housing includes the structure's
	plumbing, heating, air conditioning, and electrical systems.
	(c)  Industrialized housing does not include:
	(1)  a residential structure that exceeds three stories
	or 49 feet in height;
	(2)  housing constructed of a sectional or panelized
	system that does not use a modular component; or
	(3)  a ready-built home constructed in a manner in
	which the entire living area is contained in a single unit or
	section at a temporary location for the purpose of selling and
	moving the home to another location.
	SUBCHAPTER B. BOARD POWERS AND DUTIES
	Sec. 1203.051.  RULES; ORDERS. (a) The board shall adopt
	rules and issue orders as necessary to:
	(1)  ensure compliance with the purposes of this
	chapter; and
	(2)  provide for uniform enforcement of this chapter.
	(b)  The board shall adopt rules as appropriate to implement
	the board's actions, decisions, interpretations, and instructions.
	Sec. 1203.052.  RULES PROVIDING FOR REGISTRATION AND
	REGULATION. The board by rule shall provide for registration and
	regulation of manufacturers or builders of industrialized housing.
	Sec. 1203.053.  FEES. (a) The board shall set fees, in
	amounts sufficient to cover the costs of the inspections described
	by this chapter and the administration of this chapter, for:
	(1)  the registration of manufacturers or builders of
	industrialized housing;
	(2)  the inspection of industrialized housing; and
	(3)  the issuance of decals or insignia required under
	Section 1203.154.
	(b)  The fees shall be paid to the comptroller and placed in
	the general revenue fund, except that a fee for an inspection may be
	paid directly to an approved third-party inspector who performs the
	inspection.
	(c)  The building and permit fees charged by a municipality
	for an inspection of industrialized housing to be located in the
	municipality may not exceed the fees charged for the equivalent
	inspection of a building constructed on-site.
	Sec. 1203.054.  APPROVAL OF THIRD-PARTY INSPECTORS AND
	DESIGN REVIEW AGENCIES. (a) The board shall establish criteria for
	the approval of, and approve accordingly, all third-party
	inspectors and design review agencies.
	(b)  The executive director shall recommend qualified
	third-party inspectors and design review agencies to the board.
	(c)  The executive director shall publish a list of all
	approved inspectors and design review agencies.
	Sec. 1203.055.  APPLICABILITY OF OTHER LAW. Sections 51.401
	and 51.404 do not apply to this chapter.
	SUBCHAPTER C. REQUIREMENTS AND STANDARDS FOR INDUSTRIALIZED
	HOUSING
	Sec. 1203.101.  BUILDING CODES. (a) In addition to
	complying with Subsection (b) or (c), as applicable, industrialized
	housing must be constructed to meet or exceed the requirements and
	standards of the National Electrical Code, published by the
	National Fire Protection Association, as that code existed on
	January 1, 1985.
	(b)  Industrialized housing erected or installed in a
	municipality must be constructed to meet or exceed the requirements
	and standards of whichever of the following two groups of codes is
	used by the municipality:
	(1)  the Uniform Building Code, Uniform Plumbing Code,
	and Uniform Mechanical Code, published by the International
	Conference of Building Officials, as those codes existed on January
	1, 1985; or
	(2)  the Standard Building Code, Standard Mechanical
	Code, Standard Plumbing Code, and Standard Gas Code, published by
	the Southern Building Code Congress International, Inc., as those
	codes existed on January 1, 1985.
	(c)  Industrialized housing erected or installed outside a
	municipality or in a municipality that does not use a building code
	group described by Subsection (b)(1) or (2) must be constructed to
	meet or exceed the requirements and standards of whichever of those
	building code groups is selected by the manufacturer of the
	housing.
	Sec. 1203.102.  BUILDING CODE AMENDMENT. If a code
	described by Section 1203.101 is amended after January 1, 1985, the
	requirements and standards of the amended code shall be used in
	place of the January 1, 1985, edition if the board determines that
	use of the amended code is:
	(1)  in the public interest; and
	(2)  consistent with the purposes of this chapter.
	Sec. 1203.103.  BUILDING CODE AMENDMENT: MUNICIPALITY OR
	OTHER POLITICAL SUBDIVISION. (a) A municipality or other
	political subdivision may not require or enforce, as a prerequisite
	for granting or approving a building or construction permit or
	certificate of occupancy, an amendment to a code described by
	Section 1203.101.
	(b)  On the petition of a local building official and after a
	hearing, the board may require a reasonable amendment to a building
	code group described by Section 1203.101(b)(1) or (2) that the
	board determines to be essential for public health and safety. The
	amendment shall be applied uniformly on a statewide basis.
	Sec. 1203.104.  DESIGN REVIEW. To ensure compliance with
	the mandatory building codes, the department or approved design
	review agency shall review all designs, plans, and specifications
	of industrialized housing in accordance with board interpretations
	and instructions.
	Sec. 1203.105.  BOARD STAMP OF APPROVAL. (a) The department
	or approved design review agency shall place the board's stamp of
	approval on each page of the designs, plans, and specifications of
	industrialized housing that:
	(1)  meet or exceed the code standards and requirements
	under board interpretations and instructions; and
	(2)  are approved by the department or design review
	agency.
	(b)  Each page of the designs, plans, and specifications must
	bear the board's stamp of approval if the designs, plans, and
	specifications satisfy the requirements of Subsection (a)(1) and
	are approved in accordance with Subsection (a)(2).
	Sec. 1203.106.  BOARD DETERMINATION OF CERTAIN QUESTIONS
	RELATED TO INDUSTRIALIZED HOUSING. (a) The board shall determine
	all questions raised by a municipality in connection with the
	review of designs, plans, and specifications of industrialized
	housing, as authorized by Section 1203.202.
	(b)  With reference to the standards and requirements of the
	mandatory building codes, the board shall determine, from an
	engineering performance standpoint, all questions concerning:
	(1)  code equivalency; or
	(2)  alternative materials or methods of construction.
	Sec. 1203.107.  BOARD DECISIONS BINDING. The decisions,
	actions, and interpretations of the board are binding on the
	department, third-party inspectors, design review agencies, and
	municipalities and other political subdivisions.
	SUBCHAPTER D.  INSPECTIONS
	Sec. 1203.151.  INSPECTION PROCEDURES. The board may issue
	instructions to establish procedures for inspecting the
	construction and installation of industrialized housing to ensure
	compliance with approved designs, plans, and specifications.
	Sec. 1203.152.  DEPARTMENT INSPECTIONS. (a) To ensure
	compliance with the mandatory building codes or approved designs,
	plans, and specifications, the department shall inspect the
	construction of industrialized housing.  The executive director may
	designate approved third-party inspectors to perform the
	inspections subject to the rules of the board.
	(b)  Local building officials may witness department
	inspections to enable the local officials to make recommendations
	on inspection procedures to the board.
	Sec. 1203.153.  ON-SITE INSPECTIONS. (a) A municipal
	building official shall inspect all construction involving
	industrialized housing to be located in the municipality to ensure
	compliance with designs, plans, and specifications, including
	inspection of:
	(1)  the construction of the foundation system; and
	(2)  the erection and installation of the modules or
	modular components on the foundation.
	(b)  An approved third-party inspector shall perform on-site
	inspections of industrialized housing to be located outside the
	municipality.
	(c)  An inspection under Subsection (a) shall be conducted at
	the permanent site of the industrialized housing.
	Sec. 1203.154.  RULES PROVIDING FOR DECALS OR INSIGNIA. (a)
	The board by rule shall provide for the placement of decals or
	insignia on each transportable modular section or modular component
	to indicate compliance with the mandatory building codes.
	(b)  The board by rule shall exempt a construction site
	building from the requirements of this section.
	Sec. 1203.155.  RECIPROCITY. (a) The board by rule may
	authorize an inspection of industrialized housing constructed in
	another state to be performed by an inspector of the equivalent
	regulatory agency of the other state.
	(b)  The board by rule may authorize an inspection of
	industrialized housing constructed in this state for use in another
	state.
	(c)  The board shall enter into a reciprocity agreement with
	the equivalent regulatory agency of the other state as necessary to
	implement this section.
	SUBCHAPTER E.  MUNICIPAL AUTHORITY
	Sec. 1203.201.  RESERVATION OF MUNICIPAL AUTHORITY. (a)
	Municipal authority is specifically and entirely reserved to a
	municipality, including, as applicable:
	(1)  land use and zoning requirements;
	(2)  building setback requirements;
	(3)  side and rear yard requirements;
	(4)  site planning and development and property line
	requirements;
	(5)  subdivision control; and
	(6)  landscape architectural requirements.
	(b)  Except as provided by Section 1203.203, requirements
	and regulations not in conflict with this chapter or with other
	state law relating to transportation, erection, installation, or
	use of industrialized housing must be reasonably and uniformly
	applied and enforced without distinctions as to whether the housing
	is manufactured or is constructed on-site.
	Sec. 1203.202.  MUNICIPAL REGULATION OF INDUSTRIALIZED
	HOUSING. (a) A municipality that regulates the on-site
	construction or installation of industrialized housing may:
	(1)  require and review, for compliance with mandatory
	building codes, a complete set of designs, plans, and
	specifications bearing the board's stamp of approval for each
	installation of industrialized housing in the municipality;
	(2)  require that all applicable local permits and
	licenses be obtained before construction begins on a building site;
	(3)  require, in accordance with board rules, that all
	modules or modular components bear an approved decal or insignia
	indicating inspection by the department; and
	(4)  establish procedures for the inspection of:
	(A)  the erection and installation of
	industrialized housing to be located in the municipality, to ensure
	compliance with mandatory building codes and board rules; and
	(B)  all foundation and other on-site
	construction, to ensure compliance with approved designs, plans,
	and specifications.
	(b)  Procedures described by Subsection (a)(4) may require:
	(1)  before occupancy, a final inspection or test in
	accordance with mandatory building codes; and
	(2)  correction of any deficiency identified by the
	test or discovered in the final inspection.
	Sec. 1203.203.  MUNICIPAL REGULATION OF SINGLE-FAMILY AND
	DUPLEX INDUSTRIALIZED HOUSING. (a) Single-family or duplex
	industrialized housing must have all local permits and licenses
	that are applicable to other single-family or duplex dwellings.
	(b)  For purposes of this section, single-family or duplex
	industrialized housing is real property.
	(c)  A municipality may adopt regulations that require
	single-family or duplex industrialized housing to:
	(1)  have a value equal to or greater than the median
	taxable value for each single-family dwelling located within 500
	feet of the lot on which the industrialized housing is proposed to
	be located, as determined by the most recent certified tax
	appraisal roll for each county in which the properties are located;
	(2)  have exterior siding, roofing, roof pitch,
	foundation fascia, and fenestration compatible with the
	single-family dwellings located within 500 feet of the lot on which
	the industrialized housing is proposed to be located;
	(3)  comply with municipal aesthetic standards,
	building setbacks, side and rear yard offsets, subdivision control,
	architectural landscaping, square footage, and other site
	requirements applicable to single-family dwellings; or
	(4)  be securely fixed to a permanent foundation.
	(d)  For purposes of Subsection (c), "value" means the
	taxable value of the industrialized housing and the lot after
	installation of the housing.
	(e)  Except as provided by Subsection (c), a municipality may
	not adopt a regulation under this section that is more restrictive
	for industrialized housing than that required for a new
	single-family or duplex dwelling constructed on-site.
	(f)  This section does not:
	(1)  limit the authority of a municipality to adopt
	regulations to protect historic properties or historic districts;
	or
	(2)  affect deed restrictions.
	SUBCHAPTER F.  PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES
	Sec. 1203.251.  PROHIBITED PRACTICES. (a) In this section,
	"person" means an individual, partnership, company, corporation,
	association, or other group, however organized.
	(b)  A person may not construct, sell or offer to sell, lease
	or offer to lease, or transport over a street or highway of this
	state any industrialized housing, or modular section or component
	of a modular section, in violation of this chapter or a rule of the
	board or department or order of the board or executive director.
	Sec. 1203.252.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
	In addition to imposing sanctions allowed under Section 51.353, the
	board may deny, permanently revoke, or suspend for a definite
	period and specified location or geographic area a certificate of
	registration if the board finds that the applicant or registrant:
	(1)  provided false information on an application or
	other document filed with the department, division, or board;
	(2)  failed to pay a fee or file a report required by
	the department, division, or board for the administration or
	enforcement of this chapter;
	(3)  engaged in a false, misleading, or deceptive act
	or practice as described by Subchapter E, Chapter 17, Business &
	Commerce Code; or
	(4)  violated:
	(A)  this chapter;
	(B)  a rule adopted by the board or department or
	order issued by the board or the executive director under this
	chapter; or
	(C)  a decision, action, or interpretation of the
	board.
	SUBCHAPTER G.  PENALTIES
	Sec. 1203.301.  CRIMINAL PENALTY. (a) In this section,
	"person" has the meaning assigned by Section 1203.251.
	(b)  A person commits an offense if the person violates this
	chapter or a published rule of the board or department or order of
	the board or the executive director.
	(c)  An offense under this section is a Class A misdemeanor.
	SECTION 25.  Section 623.091, Transportation Code, is
	amended to read as follows:
	Sec. 623.091.  DEFINITION. In this subchapter,
	"manufactured house" means "industrialized building" as defined by
	Chapter 1202, Occupations Code, "industrialized housing" as
	defined by Chapter 1203 [1202], Occupations Code, or "manufactured
	home" as defined by Chapter 1201, Occupations Code. The term
	includes a temporary chassis system or returnable undercarriage
	used for the transportation of a manufactured house and a
	transportable section of a manufactured house that is transported
	on a chassis system or returnable undercarriage and that is
	constructed so that it cannot, without dismantling or destruction,
	be transported within the legal size limits for a motor vehicle.
	SECTION 26.  Section 158.002, Tax Code, is amended to read as
	follows:
	Sec. 158.002.  DEFINITIONS. In this chapter, "manufactured
	home," "manufacturer," "retailer," and "person" have the same
	meanings as they are given by Chapter 1201, Occupations Code. In
	addition, the term "manufactured home" also includes and means
	"industrialized housing" as defined by Chapter 1203 [1202],
	Occupations Code.
	SECTION 27.  The following provisions of the Occupations
	Code are repealed:
	(1)  Section 1202.002;
	(2)  Section 1202.203(b); and
	(3)  Section 1202.253.
	SECTION 28.  On the effective date of this Act:
	(1)  all powers, duties, functions, and activities
	performed by the Texas Department of Licensing and Regulation
	relating to the regulation of industrialized housing immediately
	before the effective date of this Act are transferred to the
	manufactured housing division of the Texas Department of Housing
	and Community Affairs;
	(2)  a rule or form of the Texas Department of Licensing
	and Regulation related to the regulation of industrialized housing
	is a rule or form of the manufactured housing division and remains
	in effect until changed by the division;
	(3)  a reference in law to the Texas Department of
	Licensing and Regulation in relation to the regulation of
	industrialized housing means the manufactured housing division;
	(4)  a reference in a law or rule to the Texas
	Commission of Licensing and Regulation in relation to the
	regulation of industrialized housing means the Manufactured
	Housing Board;
	(5)  a reference in law to the executive director of the
	Texas Department of Licensing and Regulation in relation to the
	regulation of industrialized housing means the executive director
	of the manufactured housing division;
	(6)  a license, permit, or certification in effect that
	was issued by the Texas Department of Licensing and Regulation in
	relation to the regulation of industrialized housing is continued
	in effect as a license, permit, or certification of the
	manufactured housing division;
	(7)  a complaint, investigation, or other proceeding
	pending before the Texas Department of Licensing and Regulation in
	relation to the regulation of industrialized housing is transferred
	without change in status to the manufactured housing division;
	(8)  all obligations, rights, and contracts of the
	Texas Department of Licensing and Regulation in relation to the
	regulation of industrialized housing are transferred to the
	manufactured housing division; and
	(9)  all property, including records and money, in the
	custody of the Texas Department of Licensing and Regulation
	relating to the regulation of industrialized housing and all funds
	appropriated by the legislature for use by the Texas Department of
	Licensing and Regulation for the regulation of industrialized
	housing shall be transferred to the manufactured housing division.
	SECTION 29.  This Act takes effect September 1, 2013.