Enrolled Bill Summary

            House Bill 730 adopts a new Property Code title establishing the Texas Residential Construction Commission. The bill requires the commission to adopt building and performance standards for residential construction, including standards for mold exposure reduction and remediation measures, and limited statutory warranties of specified time periods, but it allows certain alternative standards to apply to residential construction in colonias. The warranties become the exclusive implied warranties, although certain other express, written warranties may apply. A contract between a builder and homeowner may not waive the commission's warranties or standards, although a contract may include more stringent ones. The bill authorizes commission approval of third-party warranty companies through which a builder may provide a warranty. It requires the commission to appoint a task force to advise the commission on mold reduction and remediation standards and another to develop design recommendations on residential rain harvesting and water recycling.

            The bill requires certain builders involved in new home construction or home improvements to register with the commission. Builders must also register new homes with the commission, as well as other homes involved in transactions governed by the new code title. The bill establishes residential construction arbitration procedures for disputes between homeowners and builders regarding construction defects. It requires the commission to appoint an advisory task force on such arbitration, and it provides for commission certification of residential construction arbitrators but does not prohibit noncertificated arbitrators from conducting arbitrations involving residential construction defects. If an arbitration award is filed in court, a summary of the award must be filed with the commission.

            The bill creates a state-sponsored inspection and dispute resolution process. In a dispute over an alleged residential construction defect, either the homeowner or the builder may request resolution via that process. A homeowner, moreover, must comply with associated requirements before initiating any legal action for damages or other relief arising from an alleged defect. If a homeowner requests the process, notification must go to the builder, who has certain inspection rights as well as the responsibility to cure a defect that creates an imminent threat to the health or safety of inhabitants of the residence. The resolution process involves commission appointment of a third-party inspector, who produces a recommendation addressing the defect based on the applicable warranty and standards and designating a manner of repair, if any. The homeowner or builder may appeal the recommendation. Appeals are heard by state inspectors appointed by the commission. A recommendation by a third-party inspector, or a ruling by an appeals panel of state inspectors, becomes in any lawsuit a rebuttable presumption of the existence or nonexistence of a construction defect or the reasonable manner of its repair. A party legally contesting that presumption has a burden of proof by a preponderance of evidence. The bill includes changes to other code provisions relating to residential construction liability, primarily conforming amendments consistent with the added title.