Texas 2009 - 81st Regular

Texas House Bill HB2243 Latest Draft

Bill / Introduced Version Filed 02/01/2025

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                            81R10467 BEF-F
 By: Leibowitz H.B. No. 2243


 A BILL TO BE ENTITLED
 AN ACT
 relating to the licensing and regulation of residential
 construction contractors and the abolition of the Texas Residential
 Construction Commission; providing a criminal penalty.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. LICENSING AND REGULATION OF GENERAL RESIDENTIAL
 CONTRACTORS
 SECTION 1.01. Subtitle C, Title 7, Occupations Code, is
 amended by adding Chapter 1203 to read as follows:
 CHAPTER 1203. GENERAL RESIDENTIAL CONTRACTORS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 1203.001. DEFINITIONS. In this chapter:
 (1)  "Commission" means the Texas Commission of
 Licensing and Regulation.
 (2)  "Department" means the Texas Department of
 Licensing and Regulation.
 (3)  "General residential contractor" means a person
 who under a license issued under this chapter is engaged in the
 business of residential construction.
 (4)  "Residential construction" means the business of
 building, altering, repairing, improving, moving, or demolishing a
 residential structure or an appurtenance on or within the
 structure's residential property lines.
 [Sections 1203.002-1203.050 reserved for expansion]
 SUBCHAPTER B. COMMISSION AND DEPARTMENT POWERS AND DUTIES
 Sec. 1203.051.  ADMINISTRATION. The department shall
 administer this chapter.
 Sec. 1203.052.  FORMS. The department shall prescribe
 application forms for original and renewal licenses and shall
 design the licenses.
 Sec. 1203.053.  CONTRACTS FOR ENFORCEMENT. The department
 may contract with another state agency or a political subdivision
 of the state to enforce this chapter and rules adopted under this
 chapter.
 Sec. 1203.054.  DIRECTORY OF LICENSE HOLDERS. (a) The
 department shall publish annually a directory of license holders.
 (b)  The department may sell the directory on payment of a
 reasonable fee set by the commission.
 Sec. 1203.055.  RULES REGARDING USE AND DISPLAY OF LICENSE.
 The commission shall adopt rules relating to the use, display, and
 advertisement of a license.
 [Sections 1203.056-1203.100 reserved for expansion]
 SUBCHAPTER C. LICENSE REQUIREMENTS
 Sec. 1203.101.  LICENSE REQUIRED. A person may not engage in
 the business of residential construction unless the person holds a
 general residential contractor license under this chapter.
 Sec. 1203.102.  REQUIREMENTS TO OBTAIN LICENSE. The
 department shall issue a general residential contractor license to
 a person who, at the time of application:
 (1) is at least 21 years of age;
 (2)  is a citizen of the United States or a lawfully
 admitted alien;
 (3)  provides proof of insurance in the amount required
 by this chapter;
 (4)  provides proof satisfactory to the department that
 the person has worked in residential construction for at least
 three years;
 (5) is a resident of this state;
 (6) pays the application fee; and
 (7)  passes the applicable licensing examination with a
 score of at least 70 percent.
 Sec. 1203.103.  REQUIREMENTS TO RENEW LICENSE. The
 department shall renew a general residential contractor license if
 the applicant:
 (1)  holds a general residential contractor license in
 good standing;
 (2)  provides proof of insurance in the amount required
 by this chapter; and
 (3) pays the renewal fee.
 Sec. 1203.104.  APPLICANT LICENSED IN ANOTHER JURISDICTION.
 The department may waive any requirement to obtain a license under
 this chapter if the department determines that the applicant holds
 a license issued by another jurisdiction that has licensing
 requirements substantially equivalent to those of this state.
 Sec. 1203.105.  LICENSED ACTIVITY. (a) A license holder may
 exercise all professional rights, honors, and privileges relating
 to the profession of a general residential contractor.
 (b)  A license is the property of the department and must be
 surrendered on demand.
 (c) A license is valid throughout this state.
 (d)  A license holder is not required to hold an additional
 license or certificate issued by a political subdivision to operate
 in the political subdivision.
 Sec. 1203.106.  LICENSE TERM. A license issued under this
 chapter is valid for one year.
 Sec. 1203.107.  INSURANCE REQUIREMENTS. (a) Except as
 provided by Subsection (b), a license holder must maintain a
 general liability insurance policy at all times with a limit of at
 least $500,000.
 (b)  A license holder who has built or remodeled 25 or more
 homes during the previous year must maintain a general liability
 insurance policy at all times with a limit of at least $2 million.
 Sec. 1203.108.  BOND REQUIREMENTS.  (a)  A license holder
 shall obtain a surety bond for each home the license holder
 constructs or remodels. The bond must:
 (1)  guarantee the license holder's performance under
 the license holder's contract with the prospective homeowner; and
 (2)  be issued in an amount not less than the fair
 market value of the completed project if the project had no defects.
 (b)  A license holder who has constructed or remodeled 25 or
 more homes in the preceding year shall obtain a surety bond issued
 to the department in an amount equal to the fair market value of all
 homes built by the license holder in the preceding year.
 [Sections 1203.109-1203.150 reserved for expansion]
 SUBCHAPTER D. EXAMINATION
 Sec. 1203.151.  EXAMINATION REQUIRED. Each applicant for a
 license under this chapter must take the general residential
 contractor licensing examination.
 Sec. 1203.152.  CONTENTS OF EXAMINATION. The examination
 must be comprehensive in nature and require the successful
 applicant to demonstrate an intimate working knowledge of the
 latest version of the International Residential Code applicable to
 all nonelectrical aspects of residential construction.
 Sec. 1203.153.  DEVELOPMENT AND ADMINISTRATION OF
 EXAMINATION. (a) The department shall contract with a nationally or
 internationally recognized testing organization to develop the
 examination and administer the examination at least once each
 quarter.
 (b)  The examination administered under this section must
 be:
 (1)  developed in consultation with experts in
 residential construction; and
 (2)  professionally constructed, validated, and
 administered.
 Sec. 1203.154.  REEXAMINATION. (a) The department shall
 establish the criteria under which an applicant may retake an
 examination under this chapter.
 (b)  The commission shall establish a reasonable examination
 fee for an applicant requesting reexamination under this section.
 [Sections 1203.155-1203.200 reserved for expansion]
 SUBCHAPTER E. PENALTIES AND ENFORCEMENT
 Sec. 1203.201.  EMERGENCY SUSPENSION. (a) The department
 shall temporarily suspend the license of a license holder if the
 department determines from the evidence or information presented to
 it that continued practice by the license holder would constitute a
 continuing and imminent threat to the public welfare.
 (b)  A license may be suspended under this section without
 notice or hearing on the complaint if:
 (1)  action is taken to initiate proceedings for a
 hearing before the State Office of Administrative Hearings
 simultaneously with the temporary suspension; and
 (2)  a hearing is held as soon as practicable under this
 chapter and Chapter 2001, Government Code.
 (c)  The State Office of Administrative Hearings shall hold a
 preliminary hearing not later than the 14th day after the date of
 the temporary suspension to determine if there is probable cause to
 believe that a continuing and imminent threat to the public welfare
 still exists. A final hearing on the matter shall be held not later
 than the 61st day after the date of the temporary suspension.
 Sec. 1203.202.  CEASE AND DESIST ORDERS. The department may
 issue a cease and desist order regarding a violation of this chapter
 or a rule adopted under this chapter.
 Sec. 1203.203.  LICENSE SUSPENSION OR REVOCATION. (a) The
 grounds for suspending or revoking a license under this chapter
 include:
 (1)  fraud or deceit in obtaining an original or
 renewal license under this chapter;
 (2)  misapplication or misappropriation of trust
 funds, including a violation of Chapter 32, Penal Code, or Chapter
 162, Property Code, if found by a final, nonappealable court
 judgment;
 (3)  naming false consideration in a contract to sell a
 new home or in a construction contract for a new or remodeled home;
 (4)  discriminating on the basis of race, color,
 religion, sex, age, national origin, or disability;
 (5) publishing a false or misleading advertisement;
 (6)  failing to honor, within a reasonable time, a
 check issued to the department or commission, or any other
 instrument of payment, including a credit or debit card or
 electronic funds transfer, after the commission or department has
 sent by certified mail to the person's last known business address
 according to department records a request for payment;
 (7)  failing to pay a fine, fee, or administrative
 penalty assessed by the department or commission;
 (8)  failing to pay a nonappealable court judgment
 arising from a construction defect or other transaction between the
 license holder and the homeowner;
 (9)  engaging in statutory or common law fraud or
 misappropriation of funds, if found by a final, nonappealable
 judgment of any arbitrator or court that includes a finding of fraud
 against the license holder and is not satisfied before the 30th day
 after the date of the final judgment or award;
 (10)  using or attempting to use a general residential
 contractor license that has expired or been suspended or revoked;
 (11)  falsely representing that the person holds a
 license issued under this chapter;
 (12)  acting as a general residential contractor by
 using a name other than a name disclosed to the department or
 commission;
 (13)  aiding, abetting, or conspiring with a person who
 does not hold a license issued under this chapter to evade the
 provisions of this chapter, if found by a final, nonappealable
 court judgment;
 (14)  allowing a license issued under this chapter to
 be used by another person;
 (15)  acting as an agent, partner, or associate of a
 person who does not hold a license issued under this chapter with
 the intent to evade the provisions of this chapter or rules adopted
 under this chapter;
 (16)  repeatedly failing to respond to a request for
 information from the department or commission;
 (17)  failing to obtain a building permit required by a
 political subdivision before constructing a new home or improving
 an existing home;
 (18)  abandoning, without justification, any contract
 for new home improvement or construction engaged in or undertaken
 by the license holder, if found to have done so by a final,
 nonappealable court judgment;
 (19)  failing to complete a new home or home
 improvement construction project under the contract terms with the
 homeowner or prospective homeowner;
 (20)  failing to correct a violation of building codes
 or standards;
 (21)  failing to comply with architectural drawings
 specified in a contract to improve, build, or purchase a new home;
 (22)  failing to comply with the engineering design of
 a home, including the home's foundation;
 (23)  failing to satisfy a court judgment or a judgment
 in binding arbitration;
 (24) failing to honor a contractual warranty;
 (25) failing to disclose in writing:
 (A) the products that are installed in the home;
 (B) care and component warranties;
 (C) building standards; and
 (D) the risks and hazards of the home; and
 (26)  otherwise violating this chapter or a rule
 adopted under this chapter.
 (b)  A person whose license is revoked as a result of conduct
 described by Subsection (a)(9) is not eligible to hold a license
 under this chapter until the 10th anniversary of the date of
 revocation.
 Sec. 1203.204.  OFFENSE; CRIMINAL PENALTY. (a) A person
 commits an offense if the person knowingly or intentionally
 violates Section 1203.101.
 (b) An offense under this section is a Class A misdemeanor.
 SECTION 1.02. Not later than March 1, 2010, the Texas
 Commission of Licensing and Regulation shall adopt any rules
 necessary to administer Chapter 1203, Occupations Code, as added by
 this article.
 SECTION 1.03. (a) The Texas Department of Licensing and
 Regulation shall ensure that the first general residential
 contractor licensing examination is administered on June 30, 2010.
 (b) The Texas Department of Licensing and Regulation shall
 begin issuing licenses under Chapter 1203, Occupations Code, as
 added by this article, on September 1, 2010.
 SECTION 1.04. (a) Except as provided by Subsection (b) of
 this section, this article takes effect September 1, 2009.
 (b) Section 1203.101 and Subchapter E, Chapter 1203,
 Occupations Code, as added by this article, take effect January 1,
 2011.
 ARTICLE 2. ABOLITION OF TEXAS RESIDENTIAL CONSTRUCTION COMMISSION
 SECTION 2.01. (a) The Texas Residential Construction
 Commission is abolished effective September 1, 2009.
 (b) The following statutes are repealed:
 (1) Section 214.906, Local Government Code;
 (2) Title 16, Property Code;
 (3) Section 5.016, Property Code, as added by Section
 1, Chapter 843 (H.B. 1038), Acts of the 80th Legislature, Regular
 Session, 2007; and
 (4) Sections 27.001(3) and (9), 27.004(l), and
 27.007(c), Property Code.
 SECTION 2.02. (a) The Texas Department of Licensing and
 Regulation shall take custody of the property, records, or other
 assets of the Texas Residential Construction Commission unless the
 governor designates another appropriate governmental entity to
 take custody of the property, records, or other assets.
 (b) If the Texas Residential Construction Commission has a
 continuing valid and enforceable obligation, including bonded
 indebtedness, Section 325.017(f), Government Code, applies in
 relation to the continuing obligation of the commission.
 SECTION 2.03. Sections 59.011(a) and (c), Finance Code, are
 amended to read as follows:
 (a) For purposes of Chapter 27, Property Code, [and Title
 16, Property Code,] a federally insured financial institution
 regulated under this code is not a builder.
 (c) A builder hired by a lender to complete the construction
 of a foreclosed home is not liable for any construction defects of
 which the builder had no knowledge that existed prior to the
 acquisition of the home by the lender, but the builder is subject to
 Chapter 27, Property Code, [and Title 16, Property Code,] for work
 performed for the lender subsequent to the acquisition of the home
 by the lender.
 SECTION 2.04. Sections 27.001(4), (5), and (8), Property
 Code, are amended to read as follows:
 (4) "Construction defect" [has the meaning assigned by
 Section 401.004 for an action to which Subtitle D, Title 16, applies
 and for any other action] means a matter concerning the design,
 construction, or repair of a new residence, of an alteration of or
 repair or addition to an existing residence, or of an appurtenance
 to a residence, on which a person has a complaint against a
 contractor. The term may include any physical damage to the
 residence, any appurtenance, or the real property on which the
 residence and appurtenance are affixed proximately caused by a
 construction defect.
 (5) "Contractor":
 (A) means:
 (i) a person [builder, as defined by
 Section 401.003,] contracting with an owner for the construction or
 repair of a new residence, for the repair or alteration of or an
 addition to an existing residence, or for the construction, sale,
 alteration, addition, or repair of an appurtenance to a new or
 existing residence;
 (ii) any person contracting with a
 purchaser for the sale of a new residence constructed by or on
 behalf of that person; or
 (iii) a person contracting with an owner or
 the developer of a condominium for the construction of a new
 residence, for an alteration of or an addition to an existing
 residence, for repair of a new or existing residence, or for the
 construction, sale, alteration, addition, or repair of an
 appurtenance to a new or existing residence; and
 (B) includes:
 (i) an owner, officer, director,
 shareholder, partner, or employee of the contractor; and
 (ii) a risk retention group registered
 under Chapter 2201 [Article 21.54], Insurance Code, that insures
 all or any part of a contractor's liability for the cost to repair a
 residential construction defect.
 (8) "Structural failure" [has the meaning assigned by
 Section 401.002 for an action to which Subtitle D, Title 16, applies
 and for any other action] means actual physical damage to the
 load-bearing portion of a residence caused by a failure of the
 load-bearing portion.
 SECTION 2.05. Section 27.002(b), Property Code, is amended
 to read as follows:
 (b) To [Except as provided by this subsection, to] the
 extent of conflict between this chapter and any other law,
 including the Deceptive Trade Practices-Consumer Protection Act
 (Subchapter E, Chapter 17, Business & Commerce Code) or a common law
 cause of action, this chapter prevails. [To the extent of conflict
 between this chapter and Title 16, Title 16 prevails.]
 SECTION 2.06. Section 27.003(a), Property Code, is amended
 to read as follows:
 (a) In an action to recover damages or other relief arising
 from a construction defect:
 (1) a contractor is not liable for any percentage of
 damages caused by:
 (A) negligence of a person other than the
 contractor or an agent, employee, or subcontractor of the
 contractor;
 (B) failure of a person other than the contractor
 or an agent, employee, or subcontractor of the contractor to:
 (i) take reasonable action to mitigate the
 damages; or
 (ii) take reasonable action to maintain the
 residence;
 (C) normal wear, tear, or deterioration;
 (D) normal shrinkage due to drying or settlement
 of construction components within the tolerance of building
 standards; or
 (E) the contractor's reliance on written
 information relating to the residence, appurtenance, or real
 property on which the residence and appurtenance are affixed that
 was obtained from official government records, if the written
 information was false or inaccurate and the contractor did not know
 and could not reasonably have known of the falsity or inaccuracy of
 the information; and
 (2) if an assignee of the claimant or a person
 subrogated to the rights of a claimant fails to provide the
 contractor with the written notice and opportunity to inspect and
 offer to repair required by Section 27.004 [or fails to request
 state-sponsored inspection and dispute resolution under Chapter
 428, if applicable,] before performing repairs, the contractor is
 not liable for the cost of any repairs or any percentage of damages
 caused by repairs made to a construction defect at the request of an
 assignee of the claimant or a person subrogated to the rights of a
 claimant by a person other than the contractor or an agent,
 employee, or subcontractor of the contractor.
 SECTION 2.07. Sections 27.004(a), (b), (c), and (d),
 Property Code, are amended to read as follows:
 (a) Before [In a claim not subject to Subtitle D, Title 16,
 before] the 60th day preceding the date a claimant seeking from a
 contractor damages or other relief arising from a construction
 defect initiates an action, the claimant shall give written notice
 by certified mail, return receipt requested, to the contractor, at
 the contractor's last known address, specifying in reasonable
 detail the construction defects that are the subject of the
 complaint. On the request of the contractor, the claimant shall
 provide to the contractor any evidence that depicts the nature and
 cause of the defect and the nature and extent of repairs necessary
 to remedy the defect, including expert reports, photographs, and
 videotapes, if that evidence would be discoverable under Rule 192,
 Texas Rules of Civil Procedure. During the 35-day period after the
 date the contractor receives the notice, and on the contractor's
 written request, the contractor shall be given a reasonable
 opportunity to inspect and have inspected the property that is the
 subject of the complaint to determine the nature and cause of the
 defect and the nature and extent of repairs necessary to remedy the
 defect. The contractor may take reasonable steps to document the
 defect. [In a claim subject to Subtitle D, Title 16, a contractor
 is entitled to make an offer of repair in accordance with Subsection
 (b). A claimant is not required to give written notice to a
 contractor under this subsection in a claim subject to Subtitle D,
 Title 16.]
 (b) Not [later than the 15th day after the date of a final,
 unappealable determination of a dispute under Subtitle D, Title 16,
 if applicable, or not] later than the 45th day after the date the
 contractor receives the notice [under this section, if Subtitle D,
 Title 16, does not apply], the contractor may make a written offer
 of settlement to the claimant. The offer must be sent to the
 claimant at the claimant's last known address or to the claimant's
 attorney by certified mail, return receipt requested. The offer
 may include either an agreement by the contractor to repair or to
 have repaired by an independent contractor partially or totally at
 the contractor's expense or at a reduced rate to the claimant any
 construction defect described in the notice and shall describe in
 reasonable detail the kind of repairs which will be made. The
 repairs shall be made not later than the 45th day after the date the
 contractor receives written notice of acceptance of the settlement
 offer, unless completion is delayed by the claimant or by other
 events beyond the control of the contractor. If a contractor makes
 a written offer of settlement that the claimant considers to be
 unreasonable:
 (1) on or before the 25th day after the date the
 claimant receives the offer, the claimant shall advise the
 contractor in writing and in reasonable detail of the reasons why
 the claimant considers the offer unreasonable; and
 (2) not later than the 10th day after the date the
 contractor receives notice under Subdivision (1), the contractor
 may make a supplemental written offer of settlement to the claimant
 by sending the offer to the claimant or the claimant's attorney.
 (c) If [compliance with Subtitle D, Title 16, or] the giving
 of the notice under Subsections (a) and (b) within the period
 prescribed by those subsections is impracticable because of the
 necessity of initiating an action at an earlier date to prevent
 expiration of the statute of limitations or if the complaint is
 asserted as a counterclaim, [compliance with Subtitle D, Title 16,
 or] the notice is not required. However, the action or counterclaim
 shall specify in reasonable detail each construction defect that is
 the subject of the complaint. The [If Subtitle D, Title 16, applies
 to the complaint, simultaneously with the filing of an action by a
 claimant, the claimant must submit a request under Section 428.001.
 If Subtitle D, Title 16, does not apply, the] inspection provided
 for by Subsection (a) may be made not later than the 75th day after
 the date of service of the suit, request for arbitration, or
 counterclaim on the contractor, and the offer provided for by
 Subsection (b) may be made [not later than the 15th day after the
 date the state-sponsored inspection and dispute resolution process
 is completed, if Subtitle D, Title 16, applies, or] not later than
 the 60th day after the date of service [, if Subtitle D, Title 16,
 does not apply]. If, while an action subject to this chapter is
 pending, the statute of limitations for the cause of action would
 have expired and it is determined that the provisions of Subsection
 (a) were not properly followed, the action shall be abated to allow
 compliance with Subsections (a) and (b).
 (d) The court or arbitration tribunal shall abate an action
 governed by this chapter if Subsection (c) does not apply and the
 court or tribunal, after a hearing, finds that the contractor is
 entitled to abatement because the claimant failed to [comply with
 the requirements of Subtitle D, Title 16, if applicable, failed to]
 provide the notice or failed to give the contractor a reasonable
 opportunity to inspect the property as required by Subsection (a),
 or failed to follow the procedures specified by Subsection (b). An
 action is automatically abated without the order of the court or
 tribunal beginning on the 11th day after the date a motion to abate
 is filed if the motion:
 (1) is verified and alleges that the person against
 whom the action is pending did not receive the written notice
 required by Subsection (a), the person against whom the action is
 pending was not given a reasonable opportunity to inspect the
 property as required by Subsection (a), or the claimant failed to
 follow the procedures specified by Subsection (b) [or Subtitle D,
 Title 16]; and
 (2) is not controverted by an affidavit filed by the
 claimant before the 11th day after the date on which the motion to
 abate is filed.
 SECTION 2.08. Section 27.0042(b), Property Code, is amended
 to read as follows:
 (b) A contractor may not elect to purchase the residence
 under Subsection (a) if [:
 [(1)] the residence is more than five years old at the
 time an action is initiated [; or
 [(2)     the contractor makes such an election later than
 the 15th day after the date of a final, unappealable determination
 of a dispute under Subtitle D, Title 16, if applicable].
 SECTION 2.09. Section 41.007(a), Property Code, is amended
 to read as follows:
 (a) A contract for improvements to an existing residence
 described by Section 41.001(b)(3) must contain[:
 [(1)     the contractor's certificate of registration
 number from the Texas Residential Construction Commission if the
 contractor is required to register as a builder with the
 commission;
 [(2)     the address and telephone number at which the
 owner may file a complaint with the Texas Residential Construction
 Commission about the conduct of the contractor if the contractor is
 required to register as a builder with the commission; and
 [(3)] the following warning conspicuously printed,
 stamped, or typed in a size equal to at least 10-point bold type or
 computer equivalent:
 "IMPORTANT NOTICE: You and your contractor are responsible
 for meeting the terms and conditions of this contract. If you sign
 this contract and you fail to meet the terms and conditions of this
 contract, you may lose your legal ownership rights in your
 home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW."
 SECTION 2.10. (a) The repeal by this Act of Section 5.016,
 Property Code, as added by Section 1, Chapter 843 (H.B. 1038), Acts
 of the 80th Legislature, Regular Session, 2007, applies only to a
 transfer of residential property that occurs on or after the
 effective date of this Act. A transfer of residential property that
 occurs before the effective date of this Act is governed by the law
 in effect immediately before the effective date of this Act, and
 that law is continued in effect for that purpose.
 (b) The repeal by this Act of Section 401.005(c), Property
 Code, applies only to a home or material improvement to a home
 described by Section 401.005(c), Property Code, repealed by this
 Act, the building or remodeling of which commences on or after the
 effective date of this Act. A home or material improvement to a
 home described by Section 401.005(c), Property Code, repealed by
 this Act, the building or remodeling of which is commenced before
 the effective date of this Act is subject to the warranty obligation
 applicable to the home or material improvement to the home
 immediately before the effective date of this Act.
 (c) The repeal by this Act of Sections 420.002 and 420.003,
 Property Code, applies only to a contract for the construction of a
 new home or the improvement of an existing home that is entered into
 on or after the effective date of this Act. A contract for the
 construction of a new home or the improvement of an existing home
 that is entered into before the effective date of this Act is
 governed by the law as it existed immediately before the effective
 date of this Act, and that law is continued in effect for that
 purpose.
 (d) Except as provided by this section, the change in law
 made by this Act to Chapter 27, Property Code, and the repeal by
 this Act of Sections 426.005, 426.007, and 426.008, Property Code,
 apply only to an action commenced on or after the effective date of
 this Act. An action commenced before the effective date of this Act
 or with respect to which a request was filed under Section 428.001,
 Property Code, repealed by this Act, before the effective date of
 this Act, is governed by the law in effect immediately before the
 effective date of this Act, and that law is continued in effect for
 that purpose.
 (e) The change in law made by this Act to Section
 27.003(a)(2), Property Code, applies only to a repair made on or
 after the effective date of this Act. A repair made before the
 effective date of this Act is subject to the law as it existed
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 (f) The repeal by this Act of Section 428.005, Property
 Code, does not apply to the receipt by a builder of a notice
 described by that section before the effective date of this Act.
 The receipt by a builder of a notice described by that section
 before the effective date of this Act is governed by the law in
 effect immediately before that date, and that law is continued in
 effect for that purpose.
 (g) The repeal by this Act of Chapter 430, Property Code,
 applies only to residential construction commenced on or after the
 effective date of this Act. Residential construction commenced
 before the effective date of this Act or residential construction
 commenced after the effective date of this Act under a contract
 entered into before the effective date of this Act is subject to the
 warranties and building and performance standards applicable to
 residential construction immediately before the effective date of
 this Act.
 (h) The repeal by this Act of Section 436.003, Property
 Code, applies only to an arbitration initiated on or after the
 effective date of this Act. An arbitration initiated before the
 effective date of this Act is governed by the law applicable to the
 arbitration immediately before the effective date of this Act, and
 that law is continued in effect for that purpose.
 (i) The repeal by this Act of Chapter 437, Property Code,
 applies only to an arbitration award filed on or after the effective
 date of this Act. An award filed before the effective date of this
 Act is governed by the law in effect immediately before that date,
 and that law is continued in effect for that purpose.
 (j) The repeal by this Act of Chapter 438, Property Code,
 applies only to an arbitration award issued on or after the
 effective date of this Act. An award issued before the effective
 date of this Act is governed by the law in effect immediately before
 that date, and that law is continued in effect for that purpose.
 SECTION 2.11. This article takes effect September 1, 2009.
 ARTICLE 3. EFFECTIVE DATE
 SECTION 3.01. This Act takes effect September 1, 2009.