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.