81R1405 UM-D
By: Leibowitz H.B. No. 311
A BILL TO BE ENTITLED
AN ACT
relating to certain fees authorized by the Texas Residential
Construction Commission Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 408.002, Property Code, is amended by
amending Subsections (c) and (d) to read as follows:
(c) The commission may charge a reasonable fee for:
(1) [a homeowner to submit a request for
state-sponsored inspection under Subtitle D;
[(2)] providing public information requested under
Chapter 552, Government Code, excluding information requested from
the commission under Section 409.001; or
(2) [(3)] producing, mailing, and distributing
special printed materials and publications generated in bulk by the
commission for use and distribution by builders.
(d) The commission may not charge [waive or reduce the fee
for an inspection under Subtitle D for] a homeowner a [who
demonstrates an inability to pay the] fee in connection with a
complaint, request, or other proceeding under Chapter 409 or
Subtitle D.
SECTION 2. Section 418.001, Property Code, is amended to
read as follows:
Sec. 418.001. GROUNDS FOR DISCIPLINARY ACTION. A person,
including a builder or a person who is designated as a builder's
agent under Section 416.006, or a person who owns or controls a
majority ownership interest in the builder is subject to
disciplinary action under this chapter for:
(1) fraud or deceit in obtaining a registration or
certification under this subtitle;
(2) misappropriation or misapplication of trust funds
in the practice of residential construction, including a violation
of Chapter 32, Penal Code, or Chapter 162, 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;
(4) discriminating on the basis of race, color,
religion, sex, national origin, or ancestry;
(5) publishing a false or misleading advertisement;
(6) failure to honor, within a reasonable time, a
check issued to the commission, or any other instrument of payment,
including a credit or debit card or electronic funds transfer,
after the commission has sent by certified mail a request for
payment to the person's last known business address, according to
commission records;
(7) failure to pay an administrative penalty assessed
by the commission under Chapter 419 or a fee due under Chapter 426;
(8) failure to pay a final nonappealable court
judgment arising from a construction defect or other transaction
between the person and a homeowner;
(9) failure to register a home as required by Section
426.003;
(10) failure to remit the fee for registration of a
home under Section 426.003;
(11) [failure to reimburse a homeowner the amount
ordered by the commission as provided by Section 428.004(d);
[(12)] engaging in statutory or common-law fraud or
misappropriation of funds, as determined by the commission after a
hearing under Section 418.003;
(12) [(13)] a repeated failure to participate in the
state-sponsored inspection and dispute resolution process if
required by this title;
(13) [(14)] failure to register as a builder as
required under Chapter 416;
(14) [(15)] using or attempting to use a certificate
of registration that has expired or that has been revoked;
(15) [(16)] falsely representing that the person
holds a certificate of registration issued under Chapter 416;
(16) [(17)] acting as a builder using a name other
than the name or names disclosed to the commission;
(17) [(18)] aiding, abetting, or conspiring with a
person who does not hold a certificate of registration to evade the
provisions of this title or rules adopted under this title, if found
by a final nonappealable court judgment;
(18) [(19)] allowing the person's certificate of
registration to be used by another person;
(19) [(20)] acting as an agent, partner, or associate
of a person who does not hold a certificate of registration with the
intent to evade the provisions of this title or rules adopted under
this title;
(20) [(21)] a failure to reasonably perform on an
accepted offer to repair or a repeated failure to make an offer to
repair based on:
(A) the recommendation of a third-party
inspector under Section 428.004; or
(B) the final holding of an appeal under Chapter
429;
(21) [(22)] a repeated failure to respond to a
commission request for information;
(22) [(23)] a failure to obtain a building permit
required by a political subdivision before constructing a new home
or an improvement to an existing home;
(23) [(24)] abandoning, without justification, any
home improvement contract or new home construction project engaged
in or undertaken by the person, if found to have done so by a final,
nonappealable court judgment;
(24) [(25)] a repeated failure to comply with the
requirements of Subtitle F; or
(25) [(26)] otherwise violating this title or a
commission rule adopted under this title.
SECTION 3. The heading to Section 426.004, Property Code,
is amended to read as follows:
Sec. 426.004. EXPENSES [FEES].
SECTION 4. Section 426.004(a), Property Code, is amended to
read as follows:
(a) A builder [party] who is involved in a dispute for which
a request is submitted [submits a request] under this subtitle
shall pay any amount required by the commission to cover the expense
of the third-party inspector.
SECTION 5. Section 428.001(b), Property Code, is amended to
read as follows:
(b) The request must:
(1) specify in reasonable detail each alleged
construction defect that is a subject of the request;
(2) state the amount of any known out-of-pocket
expenses and engineering or consulting fees incurred by the
homeowner in connection with each alleged construction defect;
(3) include any evidence that depicts the nature and
cause of each alleged construction defect and the nature and extent
of repairs necessary to remedy the construction defect, including,
if available, expert reports, photographs, and videotapes, if that
evidence would be discoverable under Rule 192, Texas Rules of Civil
Procedure;
(4) be accompanied by the fees required under Section
426.004, if applicable; and
(5) state the name of any person who has, on behalf of
the requestor, inspected the home in connection with an alleged
construction defect.
SECTION 6. (a) Sections 426.004(b) and (c), Property Code,
are repealed.
(b) Sections 428.004(d) and (e), Property Code, are
repealed.
SECTION 7. (a) This Act applies only to a request for
state-sponsored inspection and dispute resolution filed on or after
the effective date of this Act.
(b) A request for state-sponsored inspection and dispute
resolution that was filed 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.
SECTION 8. This Act takes effect September 1, 2009.