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By:  Duncan                                                       S.B. No. 14 

	(In the Senate - Filed July 21, 2005; July 21, 2005, read 

first time and referred to Committee on State Affairs; 

July 21, 2005, reported favorably by the following vote:  Yeas 7, 

Nays 0; July 21, 2005, sent to printer.)





A BILL TO BE ENTITLED



AN ACT





relating to the remedy provided for failure to disclose certain 

information in certain residential construction transactions.

	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        

	SECTION 1.  Section 27.007, Property Code, is amended by 

amending Subsection (b) and adding Subsection (c) to read as 

follows:

	(b)  A [If a contract does not contain the notice required by 

this section, the] claimant may recover from the contractor a civil 

penalty of $500 in addition to any other remedy provided by this 

chapter if:

		(1)  the contract does not contain the notice required 

by this section; and

		(2)  the claimant proves actual damages were 

proximately caused by the construction defect.

	(c)  A court may not certify an action brought under this 

section as a class action.

	SECTION 2.  The change in law made by Subsection (b), Section 

27.007, Property Code, as amended by this Act, applies only to a 

cause of action that is brought on or after the effective date of 

this Act.

	SECTION 3.  The change in law made by Subsection (c), Section 

27.007, Property Code, as added by this Act, applies only to the 

certification of a class action on or after July 1, 2005.  

Certification of a class action before July 1, 2005, 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.

	SECTION 4.  This Act takes effect immediately if it receives 

a vote of two-thirds of all the members elected to each house, as 

provided by Section 39, Article III, Texas Constitution.  If this 

Act does not receive the vote necessary for immediate effect, this 

Act takes effect on the 91st day after the last day of the 

legislative session.







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