Amend CSHB 1038 to read as follows:                                          
	1) On page 3, line 4, strike the words "with the intent to 
sell" and substitute "and sells"
	2) On page 3, line 9, after "individual." add "Liability 
under this subsection does not automatically require an individual 
to register under Section 416.001."
	3) Add the following appropriately numbered SECTION and 
renumber subsequent SECTIONS accordingly:
	SECTION ____. Section 401.002, Property Code, is amended to 
read as follows: 
		(8) Improvement to the interior of an existing 
home---any modification to the interior living space of a home 
which includes the addition or installation of permanent fixtures 
inside the home. An improvement to the interior of an existing home 
does not include improvements to an existing home if the 
improvements are designed primarily to repair or replace the home's 
component parts.
		(9) (8) "Limited statutory warranty and building and 
performance standards" means the limited statutory warranty and 
building and performance standards adopted by the commission under 
Section 430.001.
		(10) Material improvement---a modification to an 
existing home that either increases or decreases the home's total 
square footage of living space that also modifies the home's 
foundation, perimeter walls or roof. A material improvement does 
not include modifications to an existing home if the modifications 
are designed primarily to repair or replace the home's component 
parts.
		(11) (9) "Nonstructural matter" has the meaning 
assigned by the limited statutory warranty and building and 
performance standards adopted by the commission under Section 
430.001.
		(12) (10) "Request" means a request submitted under 
Section 428.001.
		(13) (11) "State inspector" means a person employed by 
the commission under Section 427.002.
		(14) (12) "State-sponsored inspection and dispute 
resolution process" means the process by which the commission 
resolves a request.
		(15) (13) "Structural" means the load-bearing portion 
of a home.
		(16) (14) "Structural failure" has the meaning assigned 
by the limited statutory warranty and building and performance 
standards adopted by the commission under Section 430.001.
		(17) (15) "Third-party inspector" means a person 
appointed by the commission under Section 428.003.
		(18) (16) "Warranty of habitability" means a builder's 
obligation to construct a home or home improvement that is in 
compliance with the limited statutory warranties and building and 
performance standards adopted by the commission under Section 
430.001 and that is safe, sanitary, and fit for humans to inhabit.
	4) On page 20, line 8, after the words "Property Code" and 
before "." add "or is exempt from registration under Section 
401.005, Property Code".