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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting certain community development corporations |
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from the Texas Residential Construction Commission Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 401.003, Property Code, is amended to by |
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adding Section 401.003(d) to read as follows: |
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(d) The term does not include a non-profit business entity |
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that is exempted from taxation pursuant to Internal Revenue Code |
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section 501(c)3 provided that: |
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(1) the actual improvement to residential real |
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property sold to a homeowner by such non-profit business entity is |
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performed by a builder registered under this title; |
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(2) the registered builder contractually agrees to |
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comply with the provisions of this title for the improvement to |
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residential real property sold to a homeowner by such non-profit |
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business entity; |
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(3) the registered builder is liable contractually to |
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the homeowner for the warranties and building and performance |
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standards of the improvement to residential real property sold to |
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the homeowner by such non-profit business entity, and |
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(3) the non-profit business entity does not |
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participate, supervise or manage the construction of the |
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improvement to residential real property as described by section |
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401.003(a)(1) through section 410.003(a)(3) of this section. |
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SECTION 2. This Act applies only to a contract for sale or |
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construction of, or improvement to a home, executed on or after the |
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effective date of this Act. A contract for sale or construction of, |
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or improvement to a home, executed before the effective date of this |
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Act is covered by the law in effect at the time the contract for |
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sale, construction, or improvement is executed, and the former law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |