Amend CSHB 730 (Senate committee printing) as follows:                       
	(1)  In SECTION 1.01, following added Subtitle D, Title 16, 
Property Code (page 17, between lines 8 and 9), insert:

SUBTITLE E.  RESIDENTIAL CONSTRUCTION ARBITRATION
CHAPTER 436.  GENERAL PROVISIONS
	Sec. 436.001.  DEFINITIONS.  In this subtitle:                          
(1)  "Arbitration" means the procedure for dispute 
resolution described by Section 154.027, Civil Practice and 
Remedies Code.
(2)  "Arbitration services provider" means a person 
that holds itself out as:
(A)  managing, coordinating, or administering 
arbitrations;            
(B)  providing the services of arbitrators;                              
(C)  making referrals or appointments to 
arbitrators; or               
(D)  providing lists of arbitrators.                                     
(3)  "Arbitrator" means a neutral individual who hears 
the claims of the parties to a dispute and renders a decision and 
who is:
(A)  chosen by the parties to the dispute;                               
(B)  appointed by a court; or                                            
(C)  selected by an arbitration services 
provider under an agreement of the parties or applicable rules.
	Sec. 436.002.  APPLICABILITY.  (a)  This subtitle applies 
only to an arbitration of a dispute between a homeowner and a 
builder that involves an alleged construction defect.
	(b)  The requirements of this subtitle supplement Chapter 
171, Civil Practice and Remedies Code, and the Federal Arbitration 
Act (9 U.S.C. Sections 1-16), as amended.
	Sec. 436.003.  VENUE.  (a)  An arbitration of a dispute 
involving a construction defect shall be conducted in the county in 
which the home alleged to contain the defect is located.
	(b)  The requirements of this section may not be waived by 
contract.  
	Sec. 436.004.  RESIDENTIAL CONSTRUCTION ARBITRATION TASK 
FORCE.  (a)  The commission shall appoint a task force to study 
residential arbitrators and arbitration and advise the commission 
with respect to residential arbitrators and arbitration.
	(b)  The task force established under this section shall 
report to the 79th and 80th legislatures on the task force's 
recommendations and the effect of the implementation of those 
recommendations and of the provisions relating to arbitrators and 
arbitration in this subtitle.  This subsection expires September 1, 
2007.

CHAPTER 437.  REPORTING REQUIREMENTS
	Sec. 437.001.  AWARD FILING.  (a)  If an arbitration award is 
filed in a court of competent jurisdiction in this state, the filer 
shall also, not later than the 30th day after the date an award is 
made in a residential construction arbitration, the arbitrator who
conducts the arbitration or, if an arbitration services provider 
administers the arbitration, the services provider shall file with 
the commission a summary of the arbitration award that includes:
(1)  the names of the parties to the dispute;                            
(2)  the name of each party's attorney, if any;                          
(3)  the name of the arbitrator who conducted the 
arbitration;         
(4)  the name of the arbitration services provider who 
administered the arbitration, if any;
(5)  the fee charged to conduct the arbitration;                         
(6)  a general statement of each issue in dispute;                       
(7)  the arbitrator's determination, including the 
party that prevailed in each issue in dispute and the amount of any 
monetary award; and
(8)  the date of the arbitrator's award.                                 
	(b)  The commission shall establish rules to permit the 
voluntary filing of the information listed in subsection (a) by any 
interested party.  Any agreement prohibiting the disclosure of the 
information listed in subsection (a) is unenforceable.
	Sec. 437.002.  ENFORCEMENT.  (a)  The commission by rule 
shall establish a fee not to exceed $100 for the late filing of an 
arbitration award and procedures for the collection of that fee.
	(b)  A party to an arbitration, or an attorney for a party, 
may report an overdue filing of an arbitration award to the 
commission.

CHAPTER 438.  ENFORCEABILITY OF RESIDENTIAL 

CONSTRUCTION ARBITRATION AWARDS
	Sec. 438.001.  GROUNDS FOR VACATING AWARD.  In addition to 
grounds for vacating an arbitration award under Section 171.088, 
Civil Practice and Remedies Code, on application of a party, a court 
shall vacate an award in a residential construction arbitration 
upon a showing of manifest disregard for Texas law.
	(2)  In ARTICLE 1 of the bill, following SECTION 1.05 (page 
17, between lines 41 and 42), insert the following new SECTION, 
numbered appropriately:
	SECTION 1.____.  (a)  Section 436.003, Property Code, as 
added by this article, governs the venue of an arbitration 
initiated on or after the effective date of this Act under a 
residential construction contract entered into before, on, or after 
the effective date of this Act, unless otherwise provided by a 
contract entered into before the effective date of this Act.
	(b)  Chapter 437, Property Code, as added by this article, 
applies only to an arbitration initiated on or after January 1, 
2004.  An arbitration initiated before that date is governed by the 
law in effect immediately before the effective date of this Act, and 
that law is continued in effect for that purpose.
	(c)  Chapter 438, Property Code, as added by this article, 
applies only to an arbitration initiated on or after the effective 
date of this Act.  An arbitration initiated before that date is 
governed by the law in effect immediately before that date, and that 
law is continued in effect for that purpose.