Texas 2009 - 81st Regular

Texas Senate Bill SB1015 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R1846 AJA/UM-D
2	2	By: Hegar S.B. No. 1015
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas Residential
8	8	Construction Commission.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 27, Property Code, is amended by adding
11	11	Section 27.0021 to read as follows:
12	12	Sec. 27.0021. TIME FOR CERTAIN OFFERS AND ELECTIONS BY
13	13	BUILDER. In a dispute subject to Subtitle D, Title 16, if a party to
14	14	the dispute is authorized under Section 426.005(g) to file an
15	15	action before a recommendation is issued by a third-party
16	16	inspection or before a ruling on an appeal of a third-party
17	17	inspector's recommendation is issued, a builder may make a written
18	18	offer of settlement to the claimant under Sections 27.004(b) and
19	19	(c) or an election to purchase the residence under Section 27.0042
20	20	not later than the 15th day after the earliest date on which the
21	21	action may be filed under Section 426.005(g).
22	22	SECTION 2. Section 27.004, Property Code, is amended by
23	23	adding Subsection (l-1) to read as follows:
24	24	(l-1) An inspection of repairs by a third-party inspector
25	25	under Subsection (l), other than minor cosmetic repairs described
26	26	by Subsection (l), must be completed in the time provided by Section
27	27	428.0041.
28	28	SECTION 3. Chapter 401, Property Code, is amended by adding
29	29	Section 401.0011 to read as follows:
30	30	Sec. 401.0011. PURPOSE; TEXAS RESIDENTIAL CONSTRUCTION
31	31	COMMISSION. (a) The Texas Residential Construction Commission
32	32	oversees builders registered with the commission to ensure that
33	33	builders are responsible and accountable to the homeowners with
34	34	whom they contract.
35	35	(b) The commission's mission includes:
36	36	(1) educating builders and homeowners about all
37	37	aspects of the residential construction industry affecting the
38	38	building or remodeling of homes; and
39	39	(2) facilitating resolution of disputes between
40	40	builders and homeowners regarding construction defects through the
41	41	state-sponsored inspection and dispute resolution process.
42	42	SECTION 4. Section 401.006, Property Code, is amended to
43	43	read as follows:
44	44	Sec. 401.006. SUNSET PROVISION. The Texas Residential
45	45	Construction Commission is subject to Chapter 325, Government Code
46	46	(Texas Sunset Act). Unless continued in existence as provided by
47	47	that chapter, the commission is abolished and this title expires
48	48	September 1, 2013 [2009].
49	49	SECTION 5. Sections 401.007(a), (b), and (c), Property
50	50	Code, are amended to read as follows:
51	51	(a) The [If the] commission [has reasonable cause to believe
52	52	that a person is violating a statute to which this chapter applies,
53	53	the commission, in addition to any other authorized action,] may
54	54	issue an emergency order, including an emergency order to cease and
55	55	desist, to any person regardless of whether the person is a builder
56	56	registered under this title [from the violation or an order to take
57	57	affirmative action, or both], to enforce a statute to which this
58	58	chapter applies if the commission determines that an emergency
59	59	exists requiring immediate action to protect the public health and
60	60	safety or if the commission has reasonable cause to believe that a
61	61	person is violating a statute to which this chapter applies. The
62	62	commission may issue the emergency order without notice and hearing
63	63	or with any notice and hearing the commission considers practicable
64	64	under the circumstances [compliance]. A person may appeal the
65	65	order directly to district court in accordance with Chapter 2001,
66	66	Government Code.
67	67	(b) The [Before issuing an order under this section, the]
68	68	commission shall set the time and place and give notice for a
69	69	hearing to affirm, modify, or set aside an emergency order that was
70	70	issued without a hearing [of a hearing before a hearings officer].
71	71	The hearing is governed by Chapter 2001, Government Code. Based on
72	72	the findings of fact, conclusions of law, and recommendations of
73	73	the hearings officer, the commission by order may find whether a
74	74	violation has occurred.
75	75	(c) The commission, after providing notice and an
76	76	opportunity to appear for a hearing, may impose against a person who
77	77	violates an emergency [a cease and desist] order an administrative
78	78	penalty in an amount not to exceed $1,000 for each day of violation.
79	79	In addition to any other remedy provided by law, the attorney
80	80	general or the commission may institute in district court a suit for
81	81	injunctive relief and to collect an administrative penalty. A bond
82	82	is not required of the commission with respect to injunctive relief
83	83	granted under this section. In the action, the court may enter as
84	84	proper an order awarding a preliminary or final injunction.
85	85	SECTION 6. Section 406.001(a), Property Code, is amended to
86	86	read as follows:
87	87	(a) The Texas Residential Construction Commission consists
88	88	of 11 [nine] members appointed by the governor with the advice and
89	89	consent of the senate as follows:
90	90	(1) four members must be builders who each hold a
91	91	certificate of registration under Chapter 416;
92	92	(2) four [three] members must be representatives of
93	93	the general public;
94	94	(3) one member must be a licensed professional
95	95	engineer who practices in the area of residential construction;
96	96	[and]
97	97	(4) one member must be [either] a licensed architect
98	98	who practices in the area of residential construction; and
99	99	(5) one member must be [or] a building inspector who
100	100	meets the requirements set forth in Chapter 427 and practices in the
101	101	area of residential construction.
102	102	SECTION 7. Section 406.002(a), Property Code, is amended to
103	103	read as follows:
104	104	(a) Commission members serve staggered six-year terms, with
105	105	three or four members' terms expiring February 1 of each
106	106	odd-numbered year. The terms of three of the builder
107	107	representatives must expire in different odd-numbered years. The
108	108	terms [term] of three [one] of the representatives of the general
109	109	public must expire in different [each] odd-numbered years [year].
110	110	SECTION 8. Chapter 408, Property Code, is amended by adding
111	111	Sections 408.006 and 408.007 to read as follows:
112	112	Sec. 408.006. USE OF TECHNOLOGY. The commission shall
113	113	implement a policy requiring the commission to use appropriate
114	114	technological solutions to improve the commission's ability to
115	115	perform its functions. The policy must ensure that the public is
116	116	able to interact with the commission on the Internet.
117	117	Sec. 408.007. NEGOTIATED RULEMAKING AND ALTERNATIVE
118	118	DISPUTE RESOLUTION PROCEDURES. (a) The commission shall develop
119	119	and implement a policy to encourage the use of:
120	120	(1) negotiated rulemaking procedures under Chapter
121	121	2008, Government Code, for the adoption of commission rules; and
122	122	(2) appropriate alternative dispute resolution
123	123	procedures under Chapter 2009, Government Code, to assist in the
124	124	resolution of internal and external disputes under the commission's
125	125	jurisdiction.
126	126	(b) The commission's procedures relating to alternative
127	127	dispute resolution must conform, to the extent possible, to any
128	128	model guidelines issued by the State Office of Administrative
129	129	Hearings for the use of alternative dispute resolution by state
130	130	agencies.
131	131	(c) The commission shall designate a trained person to:
132	132	(1) coordinate the implementation of the policy
133	133	adopted under Subsection (a);
134	134	(2) serve as a resource for any training needed to
135	135	implement the procedures for negotiated rulemaking or alternative
136	136	dispute resolution; and
137	137	(3) collect data concerning the effectiveness of those
138	138	procedures, as implemented by the commission.
139	139	SECTION 9. Sections 416.012(c) and (e), Property Code, are
140	140	amended to read as follows:
141	141	(c) A builder who is registered with the commission [before
142	142	September 1, 2007, and all other builders who register for the first
143	143	time on or after September 1, 2007, and satisfy the requirements of
144	144	Subsection (b),] must complete three [five] hours of continuing
145	145	education every two [five] years, one hour of which must address
146	146	ethics.
147	147	(e) A registered builder may not receive more than one [two]
148	148	continuing education credit hour [hours] during each two-year
149	149	[five-year] period for engaging in self-directed study.
150	150	SECTION 10. Section 418.001, Property Code, is amended to
151	151	read as follows:
152	152	Sec. 418.001. GROUNDS FOR DISCIPLINARY ACTION. A person,
153	153	including a builder or a person who is designated as a builder's
154	154	agent under Section 416.006, or a person who owns or controls a
155	155	majority ownership interest in the builder is subject to
156	156	disciplinary action under this chapter for:
157	157	(1) fraud or deceit in obtaining a registration or
158	158	certification under this subtitle;
159	159	(2) misappropriation or misapplication of trust funds
160	160	in the practice of residential construction, including a violation
161	161	of Chapter 32, Penal Code, or Chapter 162, if found by a final
162	162	nonappealable court judgment;
163	163	(3) naming false consideration in a contract to sell a
164	164	new home or in a construction contract;
165	165	(4) discriminating on the basis of race, color,
166	166	religion, sex, national origin, or ancestry;
167	167	(5) publishing a false or misleading advertisement;
168	168	(6) failure to honor, within a reasonable time, a
169	169	check issued to the commission, or any other instrument of payment,
170	170	including a credit or debit card or electronic funds transfer,
171	171	after the commission has sent by certified mail a request for
172	172	payment to the person's last known business address, according to
173	173	commission records;
174	174	(7) failure to pay an administrative penalty assessed
175	175	by the commission under Chapter 419 or a fee due under Chapter 426;
176	176	(8) failure to pay a final nonappealable court
177	177	judgment arising from a construction defect or other transaction
178	178	between the person and a homeowner;
179	179	(9) failure to register a home as required by Section
180	180	426.003;
181	181	(10) failure to remit the fee for registration of a
182	182	home under Section 426.003;
183	183	(11) failure to reimburse a homeowner the amount
184	184	ordered by the commission as provided by Section 428.004(d);
185	185	(12) engaging in statutory or common-law fraud or
186	186	misappropriation of funds, as determined by the commission after a
187	187	hearing under Section 418.003;
188	188	(13) a [repeated] failure to participate in the
189	189	state-sponsored inspection and dispute resolution process if
190	190	required by this title;
191	191	(14) failure to register as a builder as required
192	192	under Chapter 416;
193	193	(15) using or attempting to use a certificate of
194	194	registration that has expired or that has been revoked;
195	195	(16) falsely representing that the person holds a
196	196	certificate of registration issued under Chapter 416;
197	197	(17) acting as a builder using a name other than the
198	198	name or names disclosed to the commission;
199	199	(18) aiding, abetting, or conspiring with a person who
200	200	does not hold a certificate of registration to evade the provisions
201	201	of this title or rules adopted under this title, if found by a final
202	202	nonappealable court judgment;
203	203	(19) allowing the person's certificate of registration
204	204	to be used by another person;
205	205	(20) acting as an agent, partner, or associate of a
206	206	person who does not hold a certificate of registration with the
207	207	intent to evade the provisions of this title or rules adopted under
208	208	this title;
209	209	(21) a failure to reasonably perform on an accepted
210	210	offer to repair or a [repeated] failure to make an offer to repair
211	211	based on:
212	212	(A) the recommendation of a third-party
213	213	inspector under Section 428.004; or
214	214	(B) the final holding of an appeal under Chapter
215	215	429;
216	216	(22) a [repeated] failure to respond to a commission
217	217	request for information;
218	218	(23) a failure to obtain a building permit required by
219	219	a political subdivision before constructing a new home or an
220	220	improvement to an existing home;
221	221	(24) abandoning, without justification, any home
222	222	improvement contract or new home construction project engaged in or
223	223	undertaken by the person, if found to have done so by a final,
224	224	nonappealable court judgment;
225	225	(25) a [repeated] failure to comply with the
226	226	requirements of Subtitle F; or
227	227	(26) otherwise violating this title or a commission
228	228	rule adopted under this title.
229	229	SECTION 11. Section 418.002(a), Property Code, is amended
230	230	to read as follows:
231	231	(a) On a determination that a ground for disciplinary action
232	232	under Section 418.001 exists, the commission may:
233	233	(1) revoke or suspend a registration or certification
234	234	[in the event of repeated prior violations that have resulted in
235	235	disciplinary action];
236	236	(2) probate the suspension of a registration or
237	237	certification;
238	238	(3) formally or informally reprimand a registered or
239	239	certified person; or
240	240	(4) impose an administrative penalty under Chapter
241	241	419.
242	242	SECTION 12. Subtitle C, Title 16, Property Code, is amended
243	243	by adding Chapter 421 to read as follows:
244	244	CHAPTER 421. HOMEOWNER RECOVERY FUND
245	245	Sec. 421.001. DEFINITION. In this chapter, "fund" means the
246	246	homeowner recovery fund.
247	247	Sec. 421.002. RECOVERY FUND. The commission shall maintain
248	248	a homeowner recovery fund to reimburse aggrieved persons who suffer
249	249	actual damages from a builder's act in violation of this title or a
250	250	rule adopted under this title. An aggrieved person may recover from
251	251	the fund based on the act of any person who is a builder at the time
252	252	the act occurs, regardless of whether the person holds a
253	253	certificate of registration issued under Chapter 416 at the time
254	254	the act occurs.
255	255	Sec. 421.003. CLAIM FOR PAYMENT FROM FUND. An aggrieved
256	256	person who obtains a court judgment against a builder for a
257	257	violation of this title, after final judgment is entered, execution
258	258	returned nulla bona, and a judgment lien perfected, is entitled to
259	259	payment from the fund in an amount equal to the amount of actual
260	260	damages from the violation awarded in the judgment.
261	261	SECTION 13. Sections 426.003(a) and (b), Property Code, are
262	262	amended to read as follows:
263	263	(a) A builder shall register a new home with the commission
264	264	on or before the 15th day of the month following the month in which
265	265	the transfer of title from the builder to the homeowner occurs. The
266	266	registration must:
267	267	(1) include the information required by the commission
268	268	by rule;
269	269	(2) state that the registration concerns a new home;
270	270	and
271	271	(3) be accompanied by the fee required by Subsection
272	272	(c).
273	273	(b) A builder who enters a transaction governed by this
274	274	title, other than the transfer of title of a new home from the
275	275	builder to the seller, shall register the home involved in the
276	276	transaction with the commission. The registration must:
277	277	(1) include the information required by the commission
278	278	by rule;
279	279	(2) state that the registration concerns a remodel or
280	280	other transaction governed by this title other than a transfer of
281	281	title of a new home;
282	282	(3) be accompanied by the fee required by Subsection
283	283	(c); and
284	284	(4) [(3)] be delivered to the commission not later
285	285	than the 15th day after the earlier of:
286	286	(A) the date of the substantial completion of the
287	287	home or other residential construction project;
288	288	(B) the date the [new] home is occupied; or
289	289	(C) the date of issuance of a certificate of
290	290	occupancy or a certificate of completion.
291	291	SECTION 14. Section 426.005, Property Code, is amended by
292	292	amending Subsection (b) and adding Subsections (g), (h), and (i) to
293	293	read as follows:
294	294	(b) Except as provided by Subsections (g) and (h), an [An]
295	295	action described by Subsection (a) must be filed:
296	296	(1) on or before the expiration of any applicable
297	297	statute of limitations or by the 45th day after the date the
298	298	third-party inspector issues the inspector's recommendation,
299	299	whichever is later; or
300	300	(2) if the recommendation is appealed, on or before
301	301	the expiration of any applicable statute of limitations or by the
302	302	45th day after the date the commission issues its ruling on the
303	303	appeal, whichever is later.
304	304	(g) An action described by Subsection (a) may be initiated
305	305	by the homeowner or builder:
306	306	(1) for a dispute involving workmanship and materials,
307	307	on or after the 91st day after the date the request for
308	308	state-sponsored inspection and dispute resolution is submitted,
309	309	except as provided by Subdivision (3);
310	310	(2) for a dispute involving a structural matter, on or
311	311	after the 106th day after the date the request for state-sponsored
312	312	inspection and dispute resolution is submitted, except as provided
313	313	by Subdivision (3); or
314	314	(3) if the third-party inspector's recommendation is
315	315	appealed and a ruling on the appeal is not issued in the time
316	316	prescribed by Section 429.001, on or after the day after the date
317	317	the panel is required to issue the ruling under that section.
318	318	(h) An action filed under Subsection (g) must be filed on or
319	319	before the later of:
320	320	(1) the expiration of the applicable statute of
321	321	limitations; or
322	322	(2) the 45th day after the first date on which
323	323	Subsection (g) authorizes the filing of the action.
324	324	(i) Once a final, unappealable recommendation or a ruling on
325	325	an appeal of a recommendation is issued under this subtitle, a
326	326	homeowner or builder may file an action described by Subsection
327	327	(a). A homeowner is not required to delay the filing of an action to
328	328	allow the builder an opportunity to make an offer of settlement or
329	329	repair under Sections 27.004(b) and (c) or an election to purchase
330	330	the residence under Section 27.0042. The filing of an action by the
331	331	homeowner does not affect a builder's right to make an offer of
332	332	settlement or repair in the time provided by Section 27.004(b) or an
333	333	election to purchase the residence in the time provided by Section
334	334	27.0042.
335	335	SECTION 15. Chapter 428, Property Code, is amended by
336	336	adding Section 428.0011 to read as follows:
337	337	Sec. 428.0011. PROCESSING AND PRIORITIZING OF REQUESTS.
338	338	(a) The commission shall adopt rules for processing requests under
339	339	this chapter that include guidelines for prioritizing the handling
340	340	of the requests and allocating agency staff and other resources in
341	341	the most efficient manner to address the requests.
342	342	(b) In adopting rules under this section, the commission
343	343	shall consider:
344	344	(1) appropriate ways to expedite the state-sponsored
345	345	inspection and dispute resolution process under emergency
346	346	circumstances, including cases involving issues of habitability;
347	347	(2) appropriate handling of complex case material and
348	348	whether different handling is appropriate for requests involving a
349	349	structural defect and requests involving workmanship and
350	350	materials; and
351	351	(3) the most efficient ways to use agency staff.
352	352	SECTION 16. Section 428.002(a), Property Code, is amended
353	353	to read as follows:
354	354	(a) At [In addition to the right of inspection provided by
355	355	Section 428.001(c), at] any time before the conclusion of the
356	356	state-sponsored inspection and dispute resolution process and on
357	357	the builder's written request, the builder shall be given
358	358	reasonable opportunity to inspect the home that is the subject of
359	359	the request or have the home inspected to determine the nature and
360	360	cause of the construction defect and the nature and extent of
361	361	repairs necessary to remedy the construction defect.
362	362	SECTION 17. Section 428.003(a), Property Code, is amended
363	363	to read as follows:
364	364	(a) On or before the 10th [30th] day after the date the
365	365	commission receives a request, the commission shall appoint the
366	366	next available third-party inspector from the applicable lists of
367	367	third-party inspectors maintained by the commission under
368	368	Subsection (c). If, in accordance with guidelines adopted under
369	369	Section 428.0011, the executive director determines the
370	370	circumstances involved in a request constitute an emergency, the
371	371	executive director may assign a state inspector or other commission
372	372	employee that the executive director determines is qualified to
373	373	conduct the inspection and issue a recommendation in accordance
374	374	with the requirements for inspections and recommendations by a
375	375	third-party inspector.
376	376	SECTION 18. Section 428.004, Property Code, is amended by
377	377	amending Subsections (b) and (c) and adding Subsections (g) and (h)
378	378	to read as follows:
379	379	(b) If the dispute involves a structural matter in the home,
380	380	the commission shall appoint an approved engineer to be the
381	381	third-party inspector. The third-party inspector shall inspect the
382	382	home not later than the 30th day after the date the request is
383	383	submitted and issue a recommendation not later than the 45th [60th]
384	384	day after the date the third-party inspector receives the
385	385	assignment from the commission, unless additional time is requested
386	386	by the third-party inspector or a party to the dispute. The
387	387	commission shall adopt rules governing the extension of time under
388	388	this subsection.
389	389	(c) The third-party inspector's recommendation must[:
390	390	[(1) address only the construction defect, based on
391	391	the applicable warranty and building and performance standards; and
392	392	[(2)] designate a method or manner of repair, if any.
393	393	The recommendation may identify any construction defects
394	394	discovered by the third-party inspector that are not included in
395	395	the request for state-sponsored inspection and dispute resolution
396	396	that involve a violation of a statutory warranty or building and
397	397	performance standard or other building code applicable to the
398	398	construction.
399	399	(g) The commission shall remove a final report, including a
400	400	request form or other case material relating to the final report,
401	401	from the commission's Internet website if:
402	402	(1) the builder has made repairs substantially
403	403	equivalent to those required by the findings of the final report
404	404	confirming the defect; and
405	405	(2) the commission has confirmed with the homeowner
406	406	and a third-party inspector who has inspected the repairs that the
407	407	builder has made those repairs.
408	408	(h) A final report removed by the commission under
409	409	Subsection (g) is not public information subject to disclosure
410	410	under Chapter 552, Government Code.
411	411	SECTION 19. Chapter 428, Property Code, is amended by
412	412	adding Section 428.0041 to read as follows:
413	413	Sec. 428.0041. INSPECTION OF CERTAIN REPAIRS. An
414	414	inspection of repairs by a third-party inspector under Section
415	415	27.004(l), other than minor cosmetic repairs described by that
416	416	section, must be completed not later than:
417	417	(1) the 30th day after the date the repairs are
418	418	completed for a dispute involving workmanship and materials; or
419	419	(2) the 45th day after the date the repairs are
420	420	completed for a dispute that involves a structural matter.
421	421	SECTION 20. Chapter 428, Property Code, is amended by
422	422	adding Section 428.006 to read as follows:
423	423	Sec. 428.006. BUILDER REPORTING REQUIRED. (a) A builder
424	424	involved in the state-sponsored inspection and dispute resolution
425	425	process shall file with the commission, on a form prescribed by the
426	426	commission, information relating to any activity related to the
427	427	dispute, including a settlement, repair effort, mediation,
428	428	arbitration, or litigation, that occurs after a third-party
429	429	inspector's report issued under this chapter becomes final and
430	430	nonappealable.
431	431	(b) A builder shall file a form not later than the 21st day
432	432	after the report becomes final and nonappealable.
433	433	(c) In addition to any other information the commission
434	434	determines is appropriate to request, the form prescribed under
435	435	this section must request the following information:
436	436	(1) the name of the builder;
437	437	(2) the name and address of the homeowner and the
438	438	property involved in the state-sponsored inspection and dispute
439	439	resolution process;
440	440	(3) the state-sponsored inspection and dispute
441	441	resolution number assigned by the commission;
442	442	(4) whether any repairs or other types of compensation
443	443	were offered by the builder to the homeowner for any construction
444	444	defects affirmed by the final, nonappealable report;
445	445	(5) if repairs were offered by the builder:
446	446	(A) whether any alleged defects affirmed by the
447	447	report were excluded from the offer of repair; and
448	448	(B) whether the homeowner accepted any or all of
449	449	the repairs offered;
450	450	(6) if repairs were offered and accepted:
451	451	(A) whether the repairs were made; and
452	452	(B) whether the repairs resulted in the
453	453	satisfaction of all issues between the parties as a result of the
454	454	residential construction project;
455	455	(7) if repairs were made, whether the builder engaged
456	456	the services of the third-party inspector assigned to the
457	457	state-sponsored inspection and dispute resolution process to
458	458	inspect the repairs;
459	459	(8) if repairs were not offered or an offer for repair
460	460	was not accepted, whether either of the parties pursued any further
461	461	legal proceedings related to the dispute between the parties;
462	462	(9) if either party has pursued further legal
463	463	proceedings, whether the parties are in mediation or involved in
464	464	arbitration or a civil lawsuit; and
465	465	(10) if the parties are involved in an arbitration
466	466	proceeding, whether the arbitration is required as a provision of a
467	467	contract between the parties.
468	468	(d) If the parties have not resolved their dispute at the
469	469	time the builder files the initial form under Subsection (b), the
470	470	builder must update the status of the information requested or
471	471	provided on the form at least once in each 21-day period until the
472	472	occurrence and reporting of one of the following events:
473	473	(1) repairs offered by the builder are accepted,
474	474	performed, reinspected in accordance with Sections 27.004(l) and
475	475	428.0041, and accepted by the homeowner as resolving all issues in
476	476	the dispute;
477	477	(2) any legal proceedings described by Subsection
478	478	(c)(9) are final;
479	479	(3) the builder repurchases the home under Section
480	480	27.0042; or
481	481	(4) any other resolution of the dispute between the
482	482	parties is finalized.
483	483	(e) A builder's failure to comply with this section or to
484	484	complete the required form honestly is grounds for denial of the
485	485	builder's registration renewal application under Chapter 416.
486	486	SECTION 21. Subtitle D, Title 16, Property Code, is amended
487	487	by adding Chapter 428A to read as follows:
488	488	CHAPTER 428A. OFFICE OF OMBUDSMAN
489	489	Sec. 428A.001. OFFICE OF OMBUDSMAN. The office of the
490	490	ombudsman is established at the commission to assist the
491	491	commission, builders, and homeowners following the completion of
492	492	the state-sponsored inspection and dispute resolution process.
493	493	Sec. 428A.002. QUALIFICATIONS. The commission shall hire a
494	494	licensed attorney to act as ombudsman.
495	495	Sec. 428A.003. POWERS AND DUTIES. (a) The ombudsman shall:
496	496	(1) facilitate defect repairs after the completion of
497	497	the state-sponsored inspection and dispute resolution process;
498	498	(2) oversee staff to conduct a mediation process
499	499	between builders and homeowners after the state-sponsored
500	500	inspection and dispute resolution process concludes; and
501	501	(3) comment on rules and other policy changes being
502	502	considered by the commission.
503	503	(b) The ombudsman shall report directly to the commission.
504	504	SECTION 22. Chapter 430, Property Code, is amended by
505	505	adding Section 430.012 to read as follows:
506	506	Sec. 430.012. HOMEOWNER INFORMATION PAMPHLET. (a) The
507	507	commission shall produce a homeowner information pamphlet to
508	508	provide homeowners with basic information about the commission and
509	509	the state-sponsored inspection and dispute resolution process.
510	510	(b) The pamphlet must include information describing:
511	511	(1) the commission's jurisdiction;
512	512	(2) the state-sponsored inspection and dispute
513	513	resolution process;
514	514	(3) statutory warranties;
515	515	(4) building and performance standards; and
516	516	(5) how the items listed in Subdivisions (1) through
517	517	(4) apply to a new or newly remodeled home.
518	518	(c) The commission shall make the pamphlet available
519	519	through the commission's Internet website and in a hard-copy
520	520	format.
521	521	(d) An escrow officer, as defined by Section 2501.003,
522	522	Insurance Code, or an attorney performing closing services in which
523	523	title insurance is not obtained, at a closing in which title to a
524	524	new home is transferred shall provide the pamphlet produced by the
525	525	commission under Subsection (a) to the person purchasing the new
526	526	home.
527	527	(e) The commission shall provide the pamphlet to a homeowner
528	528	after registration of the home under Section 426.003(b).
529	529	SECTION 23. Section 446.004, Property Code, is amended to
530	530	read as follows:
531	531	Sec. 446.004. FEE INSPECTOR. A fee inspector must be either
532	532	a licensed engineer, a registered architect, a professional
533	533	inspector licensed by the Texas Real Estate Commission, a plumbing
534	534	inspector employed by a municipality and licensed by the Texas
535	535	State Board of Plumbing Examiners, a building inspector employed by
536	536	a political subdivision, or a third-party inspector qualified under
537	537	Section 427.001(b). A builder may use the same or a different fee
538	538	inspector for inspections required under this chapter.
539	539	SECTION 24. The following provisions of the Property Code
540	540	are repealed:
541	541	(1) Section 416.011;
542	542	(2) Section 416.012(b);
543	543	(3) Section 418.002(d); and
544	544	(4) Section 428.001(c).
545	545	SECTION 25. The Sunset Advisory Commission's report to the
546	546	83rd Legislature shall evaluate:
547	547	(1) the Texas Residential Construction Commission's
548	548	overall performance; and
549	549	(2) the ability of the Texas Residential Construction
550	550	Commission to implement the changes in law made by this Act and
551	551	management actions recommended by the 81st Legislature.
552	552	SECTION 26. (a) Section 401.007, Property Code, as amended
553	553	by this Act, applies only to an order regarding an emergency or a
554	554	violation of a statute to which Chapter 401, Property Code, applies
555	555	that occurs on or after the effective date of this Act. An order
556	556	regarding an emergency or a violation of a statute that occurred
557	557	before the effective date of this Act is governed by the law in
558	558	effect at the time the emergency or violation occurred, and that law
559	559	is continued in effect for that purpose.
560	560	(b) Promptly after this Act takes effect, the governor shall
561	561	appoint the two additional members to the Texas Residential
562	562	Construction Commission as required by Section 406.001, Property
563	563	Code, as amended by this Act. In appointing those members, the
564	564	governor shall appoint one person to a term expiring February 1,
565	565	2011, and one to a term expiring February 1, 2013.
566	566	(c) Sections 416.012(c) and (e), Property Code, as amended
567	567	by this Act, apply only to a renewal of a builder registration on or
568	568	after September 1, 2011. The renewal of a builder registration
569	569	before September 1, 2011, is governed by the law in effect
570	570	immediately before the effective date of this Act, and that law is
571	571	continued in effect for that purpose.
572	572	(d) Sections 418.001 and 418.002, Property Code, as amended
573	573	by this Act, apply only to a ground for disciplinary action that
574	574	occurs on or after the effective date of this Act. A ground for
575	575	disciplinary action that occurs before the effective date of this
576	576	Act is governed by the law in effect at the time the ground for
577	577	disciplinary action occurred and the law is continued in effect for
578	578	that purpose.
579	579	(e) Section 426.003, Property Code, as amended by this Act,
580	580	applies only to a registration of a home that occurs on or after the
581	581	effective date of this Act. A registration of a home that occurs
582	582	before the effective date of this Act is governed by the law in
583	583	effect immediately before the effective date of this Act, and that
584	584	law is continued in effect for that purpose.
585	585	(f) Sections 426.005, 428.003, and 428.004, Property Code,
586	586	as amended by this Act, apply only to a request for state-sponsored
587	587	inspection and dispute resolution filed on or after the effective
588	588	date of this Act. A request filed before the effective date of this
589	589	Act is governed by the law in effect immediately before the
590	590	effective date of this Act, and that law is continued in effect for
591	591	that purpose.
592	592	(g) Not later than December 1, 2009, the Texas Residential
593	593	Construction Commission shall adopt rules under Sections 428.0011
594	594	and 428.006, Property Code, as added by this Act.
595	595	(h) Sections 27.004(l-1) and 428.0041, Property Code, as
596	596	added by this Act, apply only to inspection of a repair completed by
597	597	a builder on or after the effective date of this Act. Inspection of
598	598	a repair completed by a builder before the effective date of this
599	599	Act is governed by the law in effect immediately before the
600	600	effective date of this Act, and that law is continued in effect for
601	601	that purpose.
602	602	(i) Not later than December 1, 2009, the Texas Residential
603	603	Construction Commission shall hire an ombudsman as provided by
604	604	Chapter 428A, Property Code, as added by this Act.
605	605	SECTION 27. This Act takes effect September 1, 2009.