79R8249 AJA-D
By: Duncan S.B. No. 1390
A BILL TO BE ENTITLED
AN ACT
relating to residential construction in the State of Texas;
providing administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Sections 5.014 and 5.015 to read as follows:
Sec. 5.014. DISCLOSURE OF ABSENCE OF CERTAIN WARRANTIES.
(a) A seller of residential real property that is exempt from Title
16 under Section 401.005 shall give to the purchaser of the property
a written notice that reads substantially similar to the following:
NOTICE OF NONAPPLICABILITY OF CERTAIN WARRANTIES
AND BUILDING AND PERFORMANCE STANDARDS
The property that is subject to this contract is exempt from
Title 16, Property Code, including the provisions of that title
that provide statutory warranties and building and performance
standards.
(b) A seller of residential real property that is exempt
under Section 430.005 from the statutory warranty and building and
performance standards established under Section 430.001 shall give
to the purchaser of the property a written notice that reads
substantially similar to the following:
NOTICE OF NONAPPLICABILITY OF CERTAIN WARRANTIES AND BUILDING
AND PERFORMANCE STANDARDS
The property that is subject to this contract is exempt under
Section 430.005, Property Code, from the provisions of Title 16,
Property Code, that provide statutory warranties and building and
performance standards.
(c) A notice required by this section shall be delivered by
the seller to the purchaser on or before the effective date of an
executory contract binding the purchaser to purchase the property.
If a contract is entered into without the seller providing the
notice, the purchaser may terminate the contract for any reason on
or before the seventh day after the date the purchaser receives the
notice.
(d) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an
undivided interest in the real property;
(7) to a spouse or a person in the lineal line of
consanguinity of the seller;
(8) to or from a governmental entity; or
(9) of only a mineral interest, leasehold interest, or
security interest.
Sec. 5.015. DISCLOSURE OF LACK OF LOCAL INSPECTION. (a) If
a builder, as defined by Section 401.003, sells a home that was not
inspected by a local building inspector and the contract between
the builder and the purchaser does not provide for a private
inspection by an inspector approved by the purchaser, the builder
shall provide the purchaser of the property a written notice that
complies with this section.
(b) If the contract between the builder and the purchaser is
entered into before construction of the home is completed, the
builder shall provide the purchaser with a written notice that
reads substantially similar to the following:
NOTICE: CONSTRUCTION NOT SUBJECT
TO BUILDING INSPECTION
The home that is subject to this contract is not subject to
inspection by a municipal building inspector. A private inspection
of the construction of the residence will not be performed unless
the purchaser arranges for an inspection at the purchaser's
expense.
(c) If the contract between the builder and the purchaser is
entered into after construction of the home is completed, the
builder shall provide the purchaser with a written notice that
reads substantially similar to the following:
NOTICE: CONSTRUCTION NOT SUBJECT
TO BUILDING INSPECTION
The home that is subject to this contract was not subject to
inspection by a municipal building inspector, and no inspection was
performed during the construction of the home.
(d) A notice required by this section shall be delivered by
the seller to the purchaser on or before the effective date of an
executory contract binding the purchaser to purchase the property.
If a contract is entered into without the seller providing the
notice, the purchaser may terminate the contract for any reason on
or before the seventh day after the date the purchaser receives the
notice.
(e) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an
undivided interest in the real property;
(7) to a spouse or a person in the lineal line of
consanguinity of the seller;
(8) to or from a governmental entity; or
(9) of only a mineral interest, leasehold interest, or
security interest.
SECTION 2. Section 27.002(b), Property Code, is amended to
read as follows:
(b) Except as provided by this subsection, to [To] the
extent of conflict between this chapter and any other law,
including the Deceptive Trade Practices-Consumer Protection Act
(Subchapter E, Chapter 17, Business & Commerce Code) or a common law
cause of action, this chapter prevails. To the extent of conflict
between this chapter and Title 16, Title 16 prevails.
SECTION 3. Section 27.004(d), Property Code, is amended to
read as follows:
(d) The court or arbitration tribunal shall abate [dismiss]
an action governed by this chapter if Subsection (c) does not apply
and the court or tribunal, after a hearing, finds that the
contractor is entitled to abatement [dismissal] because the
claimant failed to comply with the requirements of Subtitle D,
Title 16, if applicable, failed to provide the notice or failed to
give the contractor a reasonable opportunity to inspect the
property as required by Subsection (a), or failed to follow the
procedures specified by Subsection (b). An action is automatically
abated [dismissed] without the order of the court or tribunal
beginning on the 11th day after the date a motion to abate [dismiss]
is filed if the motion:
(1) is verified and alleges that the person against
whom the action is pending did not receive the written notice
required by Subsection (a), the person against whom the action is
pending was not given a reasonable opportunity to inspect the
property as required by Subsection (a), or the claimant failed to
follow the procedures specified by Subsection (b) or Subtitle D,
Title 16; and
(2) is not controverted by an affidavit filed by the
claimant before the 11th day after the date on which the motion to
abate [dismiss] is filed.
SECTION 4. Section 401.003, Property Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) In this title, "builder" means any person, including a
business entity, political subdivision, or individual, who, for a
fixed price, commission, fee, wage, or other compensation,
constructs or supervises or manages the construction of:
(1) a new home;
(2) a material improvement to a home, other than an
improvement solely to replace or repair a roof of an existing home;
or
(3) an improvement to the interior of an existing home
when the cost of the work exceeds the lesser of:
(A) $20,000; or
(B) 20 percent of the taxable value of the home.
(d) For the purposes of Subsection (a)(3), the commission
shall adopt rules governing the method for determining whether the
cost of the work exceeds the threshold prescribed by that
subdivision.
SECTION 5. Chapter 401, Property Code, is amended by adding
Section 401.007 to read as follows:
Sec. 401.007. PROCEEDING TO ENFORCE TITLE. The attorney
general, a district or county attorney, or the commission acting
through the executive director may bring a proceeding for an
injunction or bring any other proceeding to enforce this title and
to enjoin any person, firm, corporation, or depository institution
from engaging in or attempting to engage in the business of
residential construction in violation of this title or any other
law of this state.
SECTION 6. Section 406.001, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) In making appointments under Subsection (a)(2), the
governor should consider individuals who can represent the
interests of homeowners, including individuals who have experience
representing consumer or homeowner interests.
SECTION 7. Section 406.004(b), Property Code, is amended to
read as follows:
(b) A person may not be a member of the commission and may
not be a commission employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.) and its subsequent amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of residential
construction; or
(2) the person's spouse is an officer, [a] manager, or
paid consultant of a Texas trade association in the field of
residential construction.
SECTION 8. Section 408.001, Property Code, is amended to
read as follows:
Sec. 408.001. RULES. The commission shall adopt and
enforce rules as reasonably required in the exercise of the
commission's powers and jurisdiction [necessary for the
implementation of this title], including rules:
(1) governing the state-sponsored inspection and
dispute resolution process, including building and performance
standards, administrative regulations, and the conduct of hearings
under Subtitle D;
(2) establishing limited statutory warranty and
building and performance standards for residential construction;
(3) approving third-party warranty companies; and
(4) approving third-party inspectors.
SECTION 9. Section 416.002, Property Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) The commission may, on receipt of an application,
conduct a criminal background check of the applicant or any person
responsible for the application. The commission may obtain
criminal history record information maintained by the Department of
Public Safety, the Federal Bureau of Investigation, or any other
local, state, or national governmental entity, in accordance with
Subchapter F, Chapter 411, Government Code[. Unless the
information is a public record at the time the commission obtains
the information under this subsection, the information is
confidential, and the commission may not release or disclose the
information to any person except under a court order or with the
permission of the applicant].
(e) Each applicant must disclose every person with a
financial or management interest in the applicant's business as a
builder unless the builder is a publicly traded company.
SECTION 10. Section 416.004, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) The commission may assess a late payment penalty that
does not exceed $500 against an applicant who fails to remit a fee
for an application for an original certificate of registration or a
renewal certificate of registration as required by this chapter.
SECTION 11. Section 416.005, Property Code, is amended to
read as follows:
Sec. 416.005. GENERAL ELIGIBILITY REQUIREMENTS. (a) A
person may not receive a certificate of registration under this
chapter unless:
(1) the person, at the time of the application:
(A) is at least 18 years of age; and
(B) is a citizen of the United States or a
lawfully admitted alien; and
(2) the commission is satisfied with the person's
honesty, trustworthiness, and integrity based on information
supplied or discovered in connection with the person's application.
(b) To determine an applicant's eligibility for a
certificate of registration, the commission may adopt rules that:
(1) require the applicant to attest to whether the
applicant:
(A) has been involved in civil litigation or
bankruptcy proceedings that reasonably bear on the applicant's
fitness to operate as a builder; or
(B) has past due debts, including student loans
or state or federal taxes; and
(2) require the applicant to include references that
can verify the applicant's training or experience or can give
information and opinions concerning the applicant's character.
(c) An affirmative attestation under Subsection (b)(1) does
not automatically make a builder ineligible for a certificate of
registration.
SECTION 12. Chapter 416, Property Code, is amended by
adding Section 416.012 to read as follows:
Sec. 416.012. CONTINUING EDUCATION. (a) To renew a
certificate of registration, the builder must complete five hours
of continuing education annually, one hour of which must address
ethics.
(b) Continuing education courses to satisfy the
requirements of this section must address the International
Residential Code for One- and Two-Family Dwellings adopted under
Section 430.001 and state laws and rules that apply to builders
under this chapter.
(c) The commission by rule shall approve continuing
education courses, course content, and course providers.
SECTION 13. Section 418.001, Property Code, is amended to
read as follows:
Sec. 418.001. GROUNDS FOR DISCIPLINARY ACTION. (a) A
person is subject to disciplinary action under this chapter for:
(1) fraud or deceit in obtaining a registration or
certification under this subtitle;
(2) misappropriation of trust funds in the practice of
residential construction;
(3) naming false consideration in a contract to sell a
new home or in a construction contract;
(4) discriminating on the basis of race, color,
religion, sex, national origin, or ancestry;
(5) publishing a false or misleading advertisement;
(6) failure to honor, within a reasonable time, a
check issued to the commission after the commission has sent by
certified mail a request for payment to the person's last known
business address, according to commission records;
(7) failure to pay an administrative penalty assessed
by the commission under Chapter 419;
(8) nonpayment of a final nonappealable judgment
arising from a construction defect or other transaction between the
person and a homeowner;
(9) failure to register a home as required by Section
426.003;
(10) failure to remit the fee for registration of a
home under Section 426.003; [or]
(11) failure to reimburse a homeowner the amount
ordered by the commission as provided in Section 428.004(d);
(12) failure to register as a builder under Chapter
416;
(13) engaging in statutory or common law fraud or
misappropriation of funds, as determined by the commission after a
hearing under Section 418.003;
(14) continuous or repeated failure to comply with the
statutory warranties and building and performance standards;
(15) failure to cooperate with the state inspection
and dispute resolution process; or
(16) otherwise violating this title or a rule adopted
or order issued by the commission under this title.
(b) For the purposes of Subsection (a)(13), the commission
may not revoke a registration or certification or impose an
administrative penalty unless the determination of statutory or
common law fraud or misappropriation of funds has been made in a
final, unappealable judgment by a court.
SECTION 14. Section 418.002, Property Code, is amended to
read as follows:
Sec. 418.002. DISCIPLINARY POWERS OF COMMISSION. On a
determination that a ground for disciplinary action under Section
418.001 exists, the commission may:
(1) revoke or suspend a registration or certification;
(2) probate the suspension of a registration or
certification; [or]
(3) formally or informally reprimand a registered or
certified person; or
(4) impose an administrative penalty under Chapter
419.
SECTION 15. Chapter 426, Property Code, is amended by
adding Section 426.0015 to read as follows:
Sec. 426.0015. POLICY AND PURPOSE. It is this state's
policy to ensure the right of homeowners and builders to have an
accessible and equitable avenue to quickly and efficiently address
construction defects. To protect that right, it is in the public
interest and is the purpose of this subtitle to ensure maximum
quality, efficiency, and equity in the state-sponsored inspection
and dispute resolution process.
SECTION 16. Section 426.003, Property Code, is amended by
amending Subsection (b) and adding Subsections (e) and (f) to read
as follows:
(b) A builder who enters into a transaction governed by this
title, other than the transfer of title of a new home from the
builder to the seller, shall register the home involved in the
transaction with the commission. The registration must:
(1) include the information required by the commission
by rule;
(2) be accompanied by the fee required by Subsection
(c); and
(3) be delivered to the commission not later than the
15th day after the earlier of:
(A) the effective date of the mechanic's lien
contract or other agreement that describes the transaction between
the homeowner and the builder; or
(B) the commencement of the work on the home.
(e) Notwithstanding Subsection (c), a registration fee is
not required for a home registered by a builder who is a political
subdivision.
(f) A builder required to provide notice to a purchaser
under Section 5.015(c) shall include with the registration
submitted for the home written notice to the commission that the
home was not inspected by a municipal building inspector.
SECTION 17. Section 426.004(a), Property Code, is amended
to read as follows:
(a) A party who submits a request under this subtitle shall
pay a reasonable [any] amount prescribed [required] by the
commission by rule that does not exceed $150 [to cover the expense
of the third-party inspector].
SECTION 18. Section 426.006, Property Code, is amended to
read as follows:
Sec. 426.006. TIME FOR REQUESTING INSPECTION AND DISPUTE
RESOLUTION. (a) For an alleged defect discovered during an
applicable warranty period, the [The] state-sponsored inspection
and dispute resolution process must be requested [on or before the
second anniversary of the date of discovery of the conditions
claimed to be evidence of the construction defect but] not later
than the 90th [30th] day after the date the applicable warranty
period expires.
(b) If the alleged defect was not discoverable by a
reasonable, prudent inspection or examination of the home or
improvement within the applicable warranty period, the
state-sponsored inspection and dispute resolution process must be
requested:
(1) on or before the second anniversary of the date of
discovery of the conditions claimed to be evidence of the
construction defect; and
(2) not later than the 10th anniversary of the date of
the initial transfer of title from the builder to the initial owner
of the home or improvement that is the subject of the dispute or, if
there is not a closing, the date on which the contract for
construction of the improvement is entered into.
SECTION 19. Section 426.007, Property Code, is amended to
read as follows:
Sec. 426.007. ADMISSIBILITY OF CERTAIN EVIDENCE. A person
who submits a request for state-sponsored inspection and dispute
resolution or responds to a request under Chapter 428 must disclose
in the request or response the name of any person who, before the
request is submitted, inspected the home on behalf of the requestor
or respondent in connection with the construction defect alleged in
the request or response. If a person's name is known to the
requestor or respondent at the time of the request or response and
is not disclosed as required by this section, the requestor or
respondent may not designate the person as an expert or use
materials prepared by that person in:
(1) the state-sponsored inspection and dispute
resolution process arising out of the request or response; or
(2) any action arising out of the construction defect
that is the subject of the request or response.
SECTION 20. Section 426.008(b), Property Code, is amended
to read as follows:
(b) The presumption established by this section applies
only to an action between the homeowner and the builder. A
recommendation or ruling under this subtitle is not admissible in
an action between any other parties, other than a disciplinary
action under Chapter 418.
SECTION 21. Chapter 426, Property Code, is amended by
adding Section 426.009 to read as follows:
Sec. 426.009. TESTIMONY OF THIRD-PARTY OR STATE INSPECTOR;
AUTHENTICATION OF RECOMMENDATION OR RULING. (a) In an action
involving a construction defect, the third-party inspector or a
member of the panel of state inspectors that issued a
recommendation or ruling in the state-sponsored inspection and
dispute resolution process concerning the defect may not be called
as a witness by any party.
(b) For the purposes of admissibility of a third-party
inspector's recommendation or a ruling by a panel of state
inspectors, the recommendation or ruling shall be considered a
business record in accordance with Rule 902, Texas Rules of
Evidence.
SECTION 22. Sections 427.001(b)-(d), Property Code, are
amended to read as follows:
(b) A third-party inspector who inspects an issue involving
workmanship and materials must:
(1) have a minimum of three [five] years' experience in
the residential construction industry; and
(2) be certified as a residential combination
inspector by the International Code Council.
(c) A third-party inspector who inspects an issue involving
a structural matter or involving both workmanship and materials and
a structural matter must:
(1) be an approved structural engineer or approved
architect; and
(2) have a minimum of five [10] years' experience in
residential construction.
(d) Each third-party inspector [who inspects an issue
involving a structural matter] must receive, in accordance with
commission rules:
(1) initial training regarding the state-sponsored
inspection and dispute resolution process and this subtitle; and
(2) annual continuing education in the inspector's
area of practice.
SECTION 23. Chapter 427, Property Code, is amended by
adding Section 427.003 to read as follows:
Sec. 427.003. IMMUNITY FROM LIABILITY. (a) A person who
performs services for the commission as a third-party inspector or
a state inspector is not liable in a civil action for an act
performed in good faith in the execution of the person's duties as a
third-party inspector or state inspector.
(b) Immunity from liability under this section does not
apply to intentional acts of misconduct or gross negligence on the
part of the inspector.
SECTION 24. Sections 428.001(b) and (d), Property Code, are
amended to read as follows:
(b) The request must:
(1) specify in reasonable detail each alleged
construction defect that is a subject of the request;
(2) state the amount of any known out-of-pocket
expenses and engineering or consulting fees incurred by the
homeowner in connection with each alleged construction defect;
(3) include any evidence that depicts the nature and
cause of each alleged construction defect and the nature and extent
of repairs necessary to remedy the construction defect, including,
if available, expert reports, photographs, and videotapes, if that
evidence would be relevant and discoverable under Rule 192, Texas
Rules of Civil Procedure;
(4) be accompanied by the fees required under Section
426.004; and
(5) state the name of any person who has, on behalf of
the requestor, inspected the home in connection with an alleged
construction defect.
(d) At the time a [A] person [who] submits a request under
this section, the person must also send by certified mail, return
receipt requested, a copy of the request, including evidence
submitted with the request, to each other party involved in the
dispute.
SECTION 25. Chapter 428, Property Code, is amended by
adding Section 428.0011 to read as follows:
Sec. 428.0011. RESPONSE TO REQUEST. (a) If a request for
state-sponsored inspection and dispute resolution is filed under
this chapter, the party to the dispute who did not file the request
may submit a written response to the allegations specified in the
request and evidence in support of that response not later than the
15th day after the date the person receives a copy of the request
under Section 428.001(d).
(b) If the response alleges the existence of a construction
defect not alleged in the original request, the third-party
inspector shall inspect for an issue a determination with regard to
that defect and any defect alleged in the request.
SECTION 26. Section 428.004(b), Property Code, is amended
to read as follows:
(b) If the dispute involves a structural matter in the home
or workmanship and materials and a structural matter in the home,
the commission shall appoint an approved engineer to be the
third-party inspector. The third-party inspector shall inspect the
home not later than the 30th day after the date the request is
submitted and issue a recommendation not later than the 60th day
after the date the third-party inspector receives the assignment
from the commission, unless additional time is requested by the
third-party inspector or a party to the dispute. The commission
shall adopt rules governing the extension of time under this
subsection.
SECTION 27. Section 429.001, Property Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The panel shall:
(1) review the request, any response to the request,
and the recommendation without a hearing unless a hearing is
otherwise required by rules adopted by the commission;
(2) approve, reject, or modify the recommendation of
the third-party inspector or remand the dispute for further action
by the third-party inspector; and
(3) issue written findings of fact and a ruling on the
appeal not later than the 30th day after the date the notice of
appeal is filed with the commission.
(d) The review under Subsection (c)(1) must be limited to
the factual information contained in the request, response, and
recommendation and to the applicable statutory warranties and
building and performance standards.
SECTION 28. Section 430.001, Property Code, is amended by
adding Subsection (i) to read as follows:
(i) Notwithstanding any other provision of this section,
the commission shall periodically review amendments to the
International Residential Code adopted by the International Code
Council and amend the limited statutory warranties and building and
performance standards to reflect any of those amendments if the
commission determines the amendment is appropriate.
SECTION 29. Section 437.001(a), Property Code, is amended
to read as follows:
(a) If an arbitration award made in a residential
construction arbitration is filed in a court of competent
jurisdiction in this state, the filer shall also, not later than the
30th day after the date the [an] award is filed with the court [made
in a residential construction arbitration], 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.
SECTION 30. Subchapter F, Chapter 411, Government Code, is
amended by adding Section 411.1407 to read as follows:
Sec. 411.1407. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION: TEXAS RESIDENTIAL CONSTRUCTION COMMISSION. (a) The
Texas Residential Construction Commission is entitled to obtain
from the department criminal history record information maintained
by the department that relates to a person who is an applicant or is
responsible for an application under Chapter 416, Property Code.
(b) Criminal history record information obtained by the
Texas Residential Construction Commission under this section may
not be released or disclosed to any person except on court order or
with the consent of the person who is the subject of the criminal
history record.
SECTION 31. Chapter 214, Local Government Code, is amended
by adding Subchapter H to read as follows:
SUBCHAPTER H. ISSUANCE OF RESIDENTIAL BUILDING
PERMITS BY MUNICIPALITY
Sec. 214.231. VERIFICATION OF BUILDER REGISTRATION. A
municipality may not issue a building permit to a builder, as
defined by Section 401.003, Property Code, for construction
described by Section 401.003(a), Property Code, unless the
municipality has determined that the builder is registered with the
Texas Residential Construction Commission under Chapter 416,
Property Code.
SECTION 32. Section 436.001(1), Property Code, is repealed.
SECTION 33. (a) The change in law made by Sections 5.014
and 5.015, Property Code, as added by this Act, applies only to a
contract for the sale of real property entered into on or after
September 1, 2005. A contract entered into before September 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.
(b) The amendment by this Act of Section 27.002(b), Property
Code, is intended to clarify rather than change existing law.
(c) The change in law made by Section 27.004(d), Property
Code, as amended by this Act, and Section 426.009, Property Code, as
added by this Act, applies only to an action commenced on or after
the effective date of this Act. An action commenced before the
effective date of this Act 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.
(d) Not later than December 1, 2005, the Texas Residential
Construction Commission shall adopt rules under Section 401.003,
Property Code, as amended by this Act. Except as provided by this
subsection, the change in law made by Section 401.003, Property
Code, as amended by this Act, applies only to conduct occurring on
or after the effective date of those rules. Conduct occurring
before the effective date of those rules or under a contract entered
into before the effective date of this Act 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.
(e) The change in law made by Section 401.007, Property
Code, as added by this Act, applies only to a person's act or
omission that occurs on or after the effective date of this Act. An
act or omission that occurs before the effective date of this Act is
governed by the law in effect immediately before that date, and that
law is continued in effect for that purpose.
(f) The change in law made by Section 406.004, Property
Code, as amended by this Act, applies only to a member of the Texas
Residential Construction Commission appointed on or after the
effective date of this Act. The service of a commission member
appointed before the effective date of this Act is governed by the
law in effect immediately before that date, and that law is
continued in effect for that purpose.
(g) Except as provided by this subsection, the change in law
made to Chapter 416, Property Code, as amended by this Act, applies
only to an application for a certificate of registration under that
chapter, or for renewal of a certificate, that is submitted on or
after the effective date of this Act. An application submitted
before the effective date of this Act is governed by the law in
effect immediately before that date, and that law is continued in
effect for that purpose. Section 416.012, Property Code, as added
by this Act, applies only to an application for renewal of a
certificate of registration submitted on or after January 1, 2006.
(h) The change in law made by Chapter 418, Property Code, as
amended by this Act, applies only to conduct that occurs on or after
the effective date of this Act. Conduct that occurs before the
effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
(i) The change in law made by Section 426.003(b), Property
Code, as amended by this Act, and Section 426.003(f), Property
Code, as added by this Act, applies only to a home involved in a
transaction entered into on or after the effective date of this Act.
A home involved in a transaction entered into before the effective
date of this Act is governed by the law in effect immediately before
that date, and that law is continued in effect for that purpose.
(j) The change in law made by Section 426.003(e), Property
Code, as added by this Act, applies only to a registration of a home
on or after the effective date of this Act. A registration of a home
before the effective date of this Act is governed by the law in
effect immediately before that date, and that law is continued in
effect for that purpose.
(k) The change in law made by Sections 426.004(a), 426.006,
426.007, and 428.001, Property Code, as amended by this Act, and
Section 428.0011, Property Code, as added by this Act, applies only
to a request for state-sponsored inspection and dispute resolution
submitted under Title 16, Property Code, on or after the effective
date of this Act. A request submitted before the effective date of
this Act is governed by the law in effect immediately before that
date, and that law is continued in effect for that purpose.
(l) The change in law made by Section 426.008(b), Property
Code, as amended by this Act, applies only to a disciplinary action
commenced on or after the effective date of this Act. A
disciplinary action commenced before the effective date of this Act
is governed by the law in effect immediately before that date, and
that law is continued in effect for that purpose.
(m) Section 427.003, Property Code, as added by this Act,
applies only to a cause of action that accrues on or after the
effective date of this Act. A cause of action that accrues before
the effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
(n) The change in law made by Section 429.001, Property
Code, as amended by this Act, applies only to a recommendation of a
third-party inspector issued under Subtitle D, Title 16, Property
Code, on or after the effective date of this Act. A recommendation
issued before the effective date of this Act is governed by the law
in effect immediately before that date, and that law is continued in
effect for that purpose.
(o) The change in law made by Section 437.001(a), Property
Code, as amended by this Act, applies only to an arbitration award
filed in a court on or after the effective date of this Act. An
arbitration award filed in a court before the effective date of this
Act is governed by the law in effect immediately before that date,
and that law is continued in effect for that purpose.
(p) Section 411.1407, Government Code, as added by this Act,
applies only to the release of criminal history record information
relating to a person who submits or is responsible for the
submission of an application made under Chapter 416, Property Code,
on or after the effective date of this Act. The release of criminal
history record information relating to a person who submits or is
responsible for the submission of an application made under that
chapter before the effective date of this Act is governed by the law
in effect immediately before that date, and that law is continued in
effect for that purpose.
(q) The change in law made by Section 214.231, Local
Government Code, as added by this Act, applies only to a building
permit issued on or after the effective date of this Act. A
building permit issued before the effective date of this Act is
governed by the law in effect immediately before that date, and that
law is continued in effect for that purpose.
SECTION 34. 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.