| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to certain construction liens under the Texas Residential |
|
|
Construction Commission Act; providing civil penalties. |
|
|
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) A builder may amend a contract that does not comply with |
|
|
this section to add the required provisions to avoid additional |
|
|
civil penalties. |
|
|
(c) When a builder amends a contract under Subsection (b), |
|
|
the builder and the homeowner may not alter any other term or |
|
|
condition of the contract. |
|
|
SECTION 2. Chapter 420, Property Code, is amended by adding |
|
|
Sections 420.0025 and 420.0026 to read as follows: |
|
|
Sec. 420.0025. CIVIL PENALTY: FAILURE TO COMPLY WITH |
|
|
REQUIRED CONTRACT PROVISIONS. (a) A person who violates Section |
|
|
420.002 is liable for a civil penalty in an amount of not less than |
|
|
$100 and not more than $500 for each violation, not to exceed an |
|
|
aggregate amount of $5,000. |
|
|
(b) Each day a violation of Section 420.002 continues |
|
|
constitutes a separate violation for the purposes of this section. |
|
|
(c) The attorney general may bring suit to recover a civil |
|
|
penalty under this section. |
|
|
(d) The amount of the civil penalty under this section must |
|
|
be based on: |
|
|
(1) the seriousness of the violation, including the |
|
|
nature, circumstances, extent, and gravity of the violation; |
|
|
(2) the history of previous violations; |
|
|
(3) the amount necessary to deter a future violation; |
|
|
(4) whether the violator demonstrated good faith, |
|
|
including when applicable whether the violator made good faith |
|
|
efforts to correct the violation; and |
|
|
(5) any other matter that justice may require. |
|
|
Sec. 420.0026. CERTAIN LIENS VALID. Notwithstanding |
|
|
Section 420.002(a), a builder's failure to comply with Section |
|
|
420.002 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 3. This Act takes effect September 1, 2009. |
|
|
|
|
|
* * * * * |