Amend CSHB 1038 on page 4, between lines 11 and 12, by 
inserting the following appropriately numbered SECTION and 
renumbering subsequent SECTIONS accordingly:
	SECTION ____.  Section 406.001, Property Code, is amended by 
amending Subsection (a) and adding Subsections (c), (d), (e), and 
(f) to read as follows:
	(a)  The Texas Residential Construction Commission consists 
of nine members appointed by the governor with the advice and 
consent of the senate as follows:
		(1)  four members must be builders who each hold a 
certificate of registration under Chapter 416;
		(2)  three members must be representatives of the 
general public, each of whom has demonstrated a continued interest 
in consumer protection;
		(3)  one member must be a licensed professional 
engineer who practices in the area of residential construction;  
and
		(4)  one member must be either a licensed architect who 
practices in the area of residential construction or a building 
inspector who meets the requirements set forth in Chapter 427 and 
practices in the area of residential construction.
	(c)  A person may not be a public member of the commission if 
the person or the person's spouse:
		(1)  is a builder registered with the commission, or is 
otherwise registered, certified, or licensed by a regulatory agency 
in the field of residential construction;
		(2)  is employed by or participates in the management 
of a business entity or other organization regulated by or 
receiving money from the commission;
		(3)  owns or controls, directly or indirectly, more 
than a 10 percent interest in a business entity or other 
organization regulated by or receiving money from the commission; 
or
		(4)  uses or receives a substantial amount of tangible 
goods, services, or money from the commission other than 
compensation or reimbursement authorized by law for commission 
membership, attendance, or expenses.
	(d)  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.) if:
		(1)  the person is an officer, employee, manager, or 
paid consultant of a Texas trade association in the field of 
residential construction; or
		(2)  the person's spouse is an officer, manager, or paid 
consultant of a Texas trade association in the field of residential 
construction.
	(e)  A person may not be a member of the commission or act as 
general counsel to the commission if the person is required to 
register as a lobbyist under Chapter 305, Government Code, because 
of the person's activities for compensation on behalf of a 
profession related to the operation of the commission.
	(f)  In this section, "Texas trade association" means a 
cooperative and voluntarily joined statewide association of 
business or professional competitors in this state designed to 
assist its members and its industry or profession in dealing with 
mutual business or professional problems and in promoting their 
common interest.