79R1049 MXM-D

By:  Eissler                                                      H.B. No. 662



A BILL TO BE ENTITLED

AN ACT

relating to the disclosure of certain convictions and judgments by 
persons regulated by the Texas Residential Construction 
Commission.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 409, Property Code, is amended by adding 
Section 409.004 to read as follows:
	Sec. 409.004.  DISCLOSURE OF CONVICTIONS AND JUDGMENTS.  (a)  
Not later than the 30th day after entry of the judgment or plea, a 
builder who holds a certificate of registration issued under this 
title shall  disclose to the commission:
		(1)  each plea of guilty or nolo contendere to a felony 
charge, or to a misdemeanor based on conduct involving a 
construction defect or other transaction between the builder and a 
homeowner;
		(2)  each conviction of a felony, or of a misdemeanor 
based on conduct involving a construction defect or other 
transaction between the builder and a homeowner; and
		(3)  each judgment against the builder in a dispute 
involving a construction defect or other transaction between the 
builder and a homeowner.
	(b)  The commission shall make the disclosed information 
available to the public and shall post the information on the 
commission's website.  The commission shall make the information 
searchable by the name of the builder.
	SECTION 2.  Section 416.002(b), Property Code, is amended to 
read as follows:
	(b)  Each applicant must disclose in the application whether 
the applicant has:
		(1)  entered a plea of guilty or nolo contendere to a 
felony charge or a misdemeanor involving moral turpitude or based 
on conduct involving a construction defect or other transaction 
between the applicant and a homeowner; [or]
		(2)  been convicted of a felony or a misdemeanor 
involving moral turpitude or based on conduct involving a 
construction defect or other transaction between the applicant and 
a homeowner, and the time for appeal has elapsed or the conviction 
has been affirmed on appeal; or
		(3)  been found liable on a judgment in a dispute 
involving a construction defect or other transaction between the 
applicant and a homeowner.
	SECTION 3.  (a)  Not later than November 1, 2005, builders 
regulated by the Texas Residential Construction Commission shall 
disclose to the commission all information described by Section 
409.004(a), Property Code, as added by this Act, that has not been 
previously disclosed to the commission.
	(b)  Not later than February 1, 2006, the Texas Residential 
Construction Commission shall comply with Section 409.004(b), 
Property Code, as added by this Act.
	SECTION 4.  (a)  Not later than October 1, 2005, the Texas 
Residential Construction Commission shall modify the form 
prescribed for an application for a certificate under Section 
416.002(a), Property Code, to comply with Section 416.002(b), 
Property Code, as amended by this Act.
	(b)  Section 416.002(b), Property Code, as amended by this 
Act, applies only to an application received by the Texas 
Residential Construction Commission on or after November 1, 2005.
	SECTION 5.  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 September 1, 2005.