SENATE BILL REPORT

                  ESHB 2872

                    As of February 23, 2000

Title:  An act relating to escrows on the sale of manufactured homes.

Brief Description:  Protecting purchasers of manufactured homes.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives DeBolt, Alexander, Benson and Hatfield).

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  2/24/2000.

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Staff:  Dave Cheal (786-7576)

Background:  A manufactured home (mobile home) is built in a factory and moved, generally in two sections, to a site.  The manufactured home is built on a frame that includes a wheel chassis and hitch so that the home can be towed on the public highways.  The construction of these homes is regulated by the federal Department of Housing and Urban Development.  Manufactured homes are treated in statute as personal property and titled as vehicles, unless a statutory process to eliminate the title and treat the home as real property is followed.

An escrow is a transaction in which an escrow company, title company, or attorney acts as an independent third party to effectuate a sale on behalf of a buyer and seller.

Summary of Bill:  The Joint Task Force on Manufactured Home Sales is created.  It is comprised of four members of the House of Representatives, four Senators, three citizens representing mobile home purchasers, and a representative of manufacturers, dealers, installers, escrow or title companies, lenders, and local governments.  The non-legislative members are appointed by the Governor.  The co-chairs are to request participation from the Attorney General's Office, the Department of Licensing, the Department of Community, Trade, and Economic Development, and the Department of Financial Institutions to serve on the joint task force as nonvoting members and may appoint other experts and advisors as nonvoting members.

The staff of Senate Committee Services and the House Office of Program Research must provide administrative and clerical assistance to the joint task force.  The joint task force is co-chaired by one senator and one state representative chosen by the task force from opposite parties.

The Joint Task Force on Manufactured Home Sales is to review the sales practices, transfer of ownership, land-home packages offered by dealers, installation, and other related practices and make recommendations to provide better protection for purchasers of manufactured homes.  The joint task force must present a final report, including recommendations and a legislative bill draft, if general consensus is reached on a bill draft, to the legislative committees represented on the joint task force by December 15, 2000.  The joint task force expires December 31, 2000.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.