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
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
(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
(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
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
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