81R19574 PMO-F
 
  By: Kleinschmidt, Darby H.B. No. 3441
 
  Substitute the following for H.B. No. 3441:
 
  By:  Elkins C.S.H.B. No. 3441
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain construction liens under the Texas Residential
  Construction Commission Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 420.002, Property Code, is amended to
  read as follows:
         Sec. 420.002.  REQUIRED CONTRACT PROVISIONS.  (a)  In a
  contract for the construction of a new home or an improvement to an
  existing home required to be registered under Section 426.003, the
  contract is not enforceable against a homeowner unless the
  contract:
               (1)  contains the builder's name and certificate of
  registration number; and
               (2)  contains the notice required by Section 420.001.
         (b)  Notwithstanding Subsection (a), a builder's failure to
  comply with that subsection does not invalidate a lien of an entity
  that:
               (1)  provided third-party financing to a homeowner for
  the construction of a new home or an improvement to an existing home
  under a residential construction contract; or
               (2)  renewed and extended financing for a purpose
  described by Subdivision (1).
         SECTION 2.  This Act takes effect September 1, 2009.