Texas 2009 - 81st Regular

Texas Senate Bill SB1015 Latest Draft

Bill / Introduced Version Filed 02/01/2025

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                            81R1846 AJA/UM-D
 By: Hegar S.B. No. 1015


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Texas Residential
 Construction Commission.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Chapter 27, Property Code, is amended by adding
 Section 27.0021 to read as follows:
 Sec. 27.0021.  TIME FOR CERTAIN OFFERS AND ELECTIONS BY
 BUILDER. In a dispute subject to Subtitle D, Title 16, if a party to
 the dispute is authorized under Section 426.005(g) to file an
 action before a recommendation is issued by a third-party
 inspection or before a ruling on an appeal of a third-party
 inspector's recommendation is issued, a builder may make a written
 offer of settlement to the claimant under Sections 27.004(b) and
 (c) or an election to purchase the residence under Section 27.0042
 not later than the 15th day after the earliest date on which the
 action may be filed under Section 426.005(g).
 SECTION 2. Section 27.004, Property Code, is amended by
 adding Subsection (l-1) to read as follows:
 (l-1)  An inspection of repairs by a third-party inspector
 under Subsection (l), other than minor cosmetic repairs described
 by Subsection (l), must be completed in the time provided by Section
 428.0041.
 SECTION 3. Chapter 401, Property Code, is amended by adding
 Section 401.0011 to read as follows:
 Sec. 401.0011.  PURPOSE; TEXAS RESIDENTIAL CONSTRUCTION
 COMMISSION.  (a)  The Texas Residential Construction Commission
 oversees builders registered with the commission to ensure that
 builders are responsible and accountable to the homeowners with
 whom they contract.
 (b) The commission's mission includes:
 (1)  educating builders and homeowners about all
 aspects of the residential construction industry affecting the
 building or remodeling of homes; and
 (2)  facilitating resolution of disputes between
 builders and homeowners regarding construction defects through the
 state-sponsored inspection and dispute resolution process.
 SECTION 4. Section 401.006, Property Code, is amended to
 read as follows:
 Sec. 401.006. SUNSET PROVISION. The Texas Residential
 Construction Commission is subject to Chapter 325, Government Code
 (Texas Sunset Act). Unless continued in existence as provided by
 that chapter, the commission is abolished and this title expires
 September 1, 2013 [2009].
 SECTION 5. Sections 401.007(a), (b), and (c), Property
 Code, are amended to read as follows:
 (a) The [If the] commission [has reasonable cause to believe
 that a person is violating a statute to which this chapter applies,
 the commission, in addition to any other authorized action,] may
 issue an emergency order, including an emergency order to cease and
 desist, to any person regardless of whether the person is a builder
 registered under this title [from the violation or an order to take
 affirmative action, or both], to enforce a statute to which this
 chapter applies if the commission determines that an emergency
 exists requiring immediate action to protect the public health and
 safety or if the commission has reasonable cause to believe that a
 person is violating a statute to which this chapter applies.  The
 commission may issue the emergency order without notice and hearing
 or with any notice and hearing the commission considers practicable
 under the circumstances [compliance]. A person may appeal the
 order directly to district court in accordance with Chapter 2001,
 Government Code.
 (b) The [Before issuing an order under this section, the]
 commission shall set the time and place and give notice for a
 hearing to affirm, modify, or set aside an emergency order that was
 issued without a hearing [of a hearing before a hearings officer].
 The hearing is governed by Chapter 2001, Government Code. Based on
 the findings of fact, conclusions of law, and recommendations of
 the hearings officer, the commission by order may find whether a
 violation has occurred.
 (c) The commission, after providing notice and an
 opportunity to appear for a hearing, may impose against a person who
 violates an emergency [a cease and desist] order an administrative
 penalty in an amount not to exceed $1,000 for each day of violation.
 In addition to any other remedy provided by law, the attorney
 general or the commission may institute in district court a suit for
 injunctive relief and to collect an administrative penalty. A bond
 is not required of the commission with respect to injunctive relief
 granted under this section. In the action, the court may enter as
 proper an order awarding a preliminary or final injunction.
 SECTION 6. Section 406.001(a), Property Code, is amended to
 read as follows:
 (a) The Texas Residential Construction Commission consists
 of 11 [nine] members appointed by the governor with the advice and
 consent of the senate as follows:
 (1) four members must be builders who each hold a
 certificate of registration under Chapter 416;
 (2) four [three] members must be representatives of
 the general public;
 (3) one member must be a licensed professional
 engineer who practices in the area of residential construction;
 [and]
 (4) one member must be [either] a licensed architect
 who practices in the area of residential construction; and
 (5) one member must be [or] a building inspector who
 meets the requirements set forth in Chapter 427 and practices in the
 area of residential construction.
 SECTION 7. Section 406.002(a), Property Code, is amended to
 read as follows:
 (a) Commission members serve staggered six-year terms, with
 three or four members' terms expiring February 1 of each
 odd-numbered year. The terms of three of the builder
 representatives must expire in different odd-numbered years. The
 terms [term] of three [one] of the representatives of the general
 public must expire in different [each] odd-numbered years [year].
 SECTION 8. Chapter 408, Property Code, is amended by adding
 Sections 408.006 and 408.007 to read as follows:
 Sec. 408.006.  USE OF TECHNOLOGY. The commission shall
 implement a policy requiring the commission to use appropriate
 technological solutions to improve the commission's ability to
 perform its functions. The policy must ensure that the public is
 able to interact with the commission on the Internet.
 Sec. 408.007.  NEGOTIATED RULEMAKING AND ALTERNATIVE
 DISPUTE RESOLUTION PROCEDURES.  (a) The commission shall develop
 and implement a policy to encourage the use of:
 (1)  negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of commission rules; and
 (2)  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the commission's
 jurisdiction.
 (b)  The commission's procedures relating to alternative
 dispute resolution must conform, to the extent possible, to any
 model guidelines issued by the State Office of Administrative
 Hearings for the use of alternative dispute resolution by state
 agencies.
 (c) The commission shall designate a trained person to:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  serve as a resource for any training needed to
 implement the procedures for negotiated rulemaking or alternative
 dispute resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures, as implemented by the commission.
 SECTION 9. Sections 416.012(c) and (e), Property Code, are
 amended to read as follows:
 (c) A builder who is registered with the commission [before
 September 1, 2007, and all other builders who register for the first
 time on or after September 1, 2007, and satisfy the requirements of
 Subsection (b),] must complete three [five] hours of continuing
 education every two [five] years, one hour of which must address
 ethics.
 (e) A registered builder may not receive more than one [two]
 continuing education credit hour [hours] during each two-year
 [five-year] period for engaging in self-directed study.
 SECTION 10. 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;
 (13) a [repeated] failure to participate in the
 state-sponsored inspection and dispute resolution process if
 required by this title;
 (14) failure to register as a builder as required
 under Chapter 416;
 (15) using or attempting to use a certificate of
 registration that has expired or that has been revoked;
 (16) falsely representing that the person holds a
 certificate of registration issued under Chapter 416;
 (17) acting as a builder using a name other than the
 name or names disclosed to the commission;
 (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;
 (19) allowing the person's certificate of registration
 to be used by another person;
 (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;
 (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;
 (22) a [repeated] failure to respond to a commission
 request for information;
 (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;
 (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;
 (25) a [repeated] failure to comply with the
 requirements of Subtitle F; or
 (26) otherwise violating this title or a commission
 rule adopted under this title.
 SECTION 11. Section 418.002(a), Property Code, is amended
 to read as follows:
 (a) On a determination that a ground for disciplinary action
 under Section 418.001 exists, the commission may:
 (1) revoke or suspend a registration or certification
 [in the event of repeated prior violations that have resulted in
 disciplinary action];
 (2) probate the suspension of a registration or
 certification;
 (3) formally or informally reprimand a registered or
 certified person; or
 (4) impose an administrative penalty under Chapter
 419.
 SECTION 12. Subtitle C, Title 16, Property Code, is amended
 by adding Chapter 421 to read as follows:
 CHAPTER 421.  HOMEOWNER RECOVERY FUND
 Sec. 421.001.  DEFINITION. In this chapter, "fund" means the
 homeowner recovery fund.
 Sec. 421.002.  RECOVERY FUND. The commission shall maintain
 a homeowner recovery fund to reimburse aggrieved persons who suffer
 actual damages from a builder's act in violation of this title or a
 rule adopted under this title. An aggrieved person may recover from
 the fund based on the act of any person who is a builder at the time
 the act occurs, regardless of whether the person holds a
 certificate of registration issued under Chapter 416 at the time
 the act occurs.
 Sec. 421.003.  CLAIM FOR PAYMENT FROM FUND. An aggrieved
 person who obtains a court judgment against a builder for a
 violation of this title, after final judgment is entered, execution
 returned nulla bona, and a judgment lien perfected, is entitled to
 payment from the fund in an amount equal to the amount of actual
 damages from the violation awarded in the judgment.
 SECTION 13. Sections 426.003(a) and (b), Property Code, are
 amended to read as follows:
 (a) A builder shall register a new home with the commission
 on or before the 15th day of the month following the month in which
 the transfer of title from the builder to the homeowner occurs. The
 registration must:
 (1) include the information required by the commission
 by rule;
 (2) state that the registration concerns a new home;
 and
 (3) be accompanied by the fee required by Subsection
 (c).
 (b) A builder who enters a transaction governed by this
 title, other than the transfer of title of a new home from the
 builder to the seller, shall register the home involved in the
 transaction with the commission. The registration must:
 (1) include the information required by the commission
 by rule;
 (2) state that the registration concerns a remodel or
 other transaction governed by this title other than a transfer of
 title of a new home;
 (3) be accompanied by the fee required by Subsection
 (c); and
 (4) [(3)] be delivered to the commission not later
 than the 15th day after the earlier of:
 (A) the date of the substantial completion of the
 home or other residential construction project;
 (B) the date the [new] home is occupied; or
 (C) the date of issuance of a certificate of
 occupancy or a certificate of completion.
 SECTION 14. Section 426.005, Property Code, is amended by
 amending Subsection (b) and adding Subsections (g), (h), and (i) to
 read as follows:
 (b) Except as provided by Subsections (g) and (h), an [An]
 action described by Subsection (a) must be filed:
 (1) on or before the expiration of any applicable
 statute of limitations or by the 45th day after the date the
 third-party inspector issues the inspector's recommendation,
 whichever is later; or
 (2) if the recommendation is appealed, on or before
 the expiration of any applicable statute of limitations or by the
 45th day after the date the commission issues its ruling on the
 appeal, whichever is later.
 (g)  An action described by Subsection (a) may be initiated
 by the homeowner or builder:
 (1)  for a dispute involving workmanship and materials,
 on or after the 91st day after the date the request for
 state-sponsored inspection and dispute resolution is submitted,
 except as provided by Subdivision (3);
 (2)  for a dispute involving a structural matter, on or
 after the 106th day after the date the request for state-sponsored
 inspection and dispute resolution is submitted, except as provided
 by Subdivision (3); or
 (3)  if the third-party inspector's recommendation is
 appealed and a ruling on the appeal is not issued in the time
 prescribed by Section 429.001, on or after the day after the date
 the panel is required to issue the ruling under that section.
 (h)  An action filed under Subsection (g) must be filed on or
 before the later of:
 (1)  the expiration of the applicable statute of
 limitations; or
 (2)  the 45th day after the first date on which
 Subsection (g) authorizes the filing of the action.
 (i)  Once a final, unappealable recommendation or a ruling on
 an appeal of a recommendation is issued under this subtitle, a
 homeowner or builder may file an action described by Subsection
 (a). A homeowner is not required to delay the filing of an action to
 allow the builder an opportunity to make an offer of settlement or
 repair under Sections 27.004(b) and (c) or an election to purchase
 the residence under Section 27.0042. The filing of an action by the
 homeowner does not affect a builder's right to make an offer of
 settlement or repair in the time provided by Section 27.004(b) or an
 election to purchase the residence in the time provided by Section
 27.0042.
 SECTION 15. Chapter 428, Property Code, is amended by
 adding Section 428.0011 to read as follows:
 Sec. 428.0011.  PROCESSING AND PRIORITIZING OF REQUESTS.
 (a)  The commission shall adopt rules for processing requests under
 this chapter that include guidelines for prioritizing the handling
 of the requests and allocating agency staff and other resources in
 the most efficient manner to address the requests.
 (b)  In adopting rules under this section, the commission
 shall consider:
 (1)  appropriate ways to expedite the state-sponsored
 inspection and dispute resolution process under emergency
 circumstances, including cases involving issues of habitability;
 (2)  appropriate handling of complex case material and
 whether different handling is appropriate for requests involving a
 structural defect and requests involving workmanship and
 materials; and
 (3) the most efficient ways to use agency staff.
 SECTION 16. Section 428.002(a), Property Code, is amended
 to read as follows:
 (a) At [In addition to the right of inspection provided by
 Section 428.001(c), at] any time before the conclusion of the
 state-sponsored inspection and dispute resolution process and on
 the builder's written request, the builder shall be given
 reasonable opportunity to inspect the home that is the subject of
 the request or have the home inspected to determine the nature and
 cause of the construction defect and the nature and extent of
 repairs necessary to remedy the construction defect.
 SECTION 17. Section 428.003(a), Property Code, is amended
 to read as follows:
 (a) On or before the 10th [30th] day after the date the
 commission receives a request, the commission shall appoint the
 next available third-party inspector from the applicable lists of
 third-party inspectors maintained by the commission under
 Subsection (c). If, in accordance with guidelines adopted under
 Section 428.0011, the executive director determines the
 circumstances involved in a request constitute an emergency, the
 executive director may assign a state inspector or other commission
 employee that the executive director determines is qualified to
 conduct the inspection and issue a recommendation in accordance
 with the requirements for inspections and recommendations by a
 third-party inspector.
 SECTION 18. Section 428.004, Property Code, is amended by
 amending Subsections (b) and (c) and adding Subsections (g) and (h)
 to read as follows:
 (b) If the dispute involves a structural matter in the home,
 the commission shall appoint an approved engineer to be the
 third-party inspector. The third-party inspector shall inspect the
 home not later than the 30th day after the date the request is
 submitted and issue a recommendation not later than the 45th [60th]
 day after the date the third-party inspector receives the
 assignment from the commission, unless additional time is requested
 by the third-party inspector or a party to the dispute. The
 commission shall adopt rules governing the extension of time under
 this subsection.
 (c) The third-party inspector's recommendation must[:
 [(1)     address only the construction defect, based on
 the applicable warranty and building and performance standards; and
 [(2)] designate a method or manner of repair, if any.
 The recommendation may identify any construction defects
 discovered by the third-party inspector that are not included in
 the request for state-sponsored inspection and dispute resolution
 that involve a violation of a statutory warranty or building and
 performance standard or other building code applicable to the
 construction.
 (g)  The commission shall remove a final report, including a
 request form or other case material relating to the final report,
 from the commission's Internet website if:
 (1)  the builder has made repairs substantially
 equivalent to those required by the findings of the final report
 confirming the defect; and
 (2)  the commission has confirmed with the homeowner
 and a third-party inspector who has inspected the repairs that the
 builder has made those repairs.
 (h)  A final report removed by the commission under
 Subsection (g) is not public information subject to disclosure
 under Chapter 552, Government Code.
 SECTION 19. Chapter 428, Property Code, is amended by
 adding Section 428.0041 to read as follows:
 Sec. 428.0041.  INSPECTION OF CERTAIN REPAIRS.  An
 inspection of repairs by a third-party inspector under Section
 27.004(l), other than minor cosmetic repairs described by that
 section, must be completed not later than:
 (1)  the 30th day after the date the repairs are
 completed for a dispute involving workmanship and materials; or
 (2)  the 45th day after the date the repairs are
 completed for a dispute that involves a structural matter.
 SECTION 20. Chapter 428, Property Code, is amended by
 adding Section 428.006 to read as follows:
 Sec. 428.006.  BUILDER REPORTING REQUIRED. (a)  A builder
 involved in the state-sponsored inspection and dispute resolution
 process shall file with the commission, on a form prescribed by the
 commission, information relating to any activity related to the
 dispute, including a settlement, repair effort, mediation,
 arbitration, or litigation, that occurs after a third-party
 inspector's report issued under this chapter becomes final and
 nonappealable.
 (b)  A builder shall file a form not later than the 21st day
 after the report becomes final and nonappealable.
 (c)  In addition to any other information the commission
 determines is appropriate to request, the form prescribed under
 this section must request the following information:
 (1) the name of the builder;
 (2)  the name and address of the homeowner and the
 property involved in the state-sponsored inspection and dispute
 resolution process;
 (3)  the state-sponsored inspection and dispute
 resolution number assigned by the commission;
 (4)  whether any repairs or other types of compensation
 were offered by the builder to the homeowner for any construction
 defects affirmed by the final, nonappealable report;
 (5) if repairs were offered by the builder:
 (A)  whether any alleged defects affirmed by the
 report were excluded from the offer of repair; and
 (B)  whether the homeowner accepted any or all of
 the repairs offered;
 (6) if repairs were offered and accepted:
 (A) whether the repairs were made; and
 (B)  whether the repairs resulted in the
 satisfaction of all issues between the parties as a result of the
 residential construction project;
 (7)  if repairs were made, whether the builder engaged
 the services of the third-party inspector assigned to the
 state-sponsored inspection and dispute resolution process to
 inspect the repairs;
 (8)  if repairs were not offered or an offer for repair
 was not accepted, whether either of the parties pursued any further
 legal proceedings related to the dispute between the parties;
 (9)  if either party has pursued further legal
 proceedings, whether the parties are in mediation or involved in
 arbitration or a civil lawsuit; and
 (10)  if the parties are involved in an arbitration
 proceeding, whether the arbitration is required as a provision of a
 contract between the parties.
 (d)  If the parties have not resolved their dispute at the
 time the builder files the initial form under Subsection (b), the
 builder must update the status of the information requested or
 provided on the form at least once in each 21-day period until the
 occurrence and reporting of one of the following events:
 (1)  repairs offered by the builder are accepted,
 performed, reinspected in accordance with Sections 27.004(l) and
 428.0041, and accepted by the homeowner as resolving all issues in
 the dispute;
 (2)  any legal proceedings described by Subsection
 (c)(9) are final;
 (3)  the builder repurchases the home under Section
 27.0042; or
 (4)  any other resolution of the dispute between the
 parties is finalized.
 (e)  A builder's failure to comply with this section or to
 complete the required form honestly is grounds for denial of the
 builder's registration renewal application under Chapter 416.
 SECTION 21. Subtitle D, Title 16, Property Code, is amended
 by adding Chapter 428A to read as follows:
 CHAPTER 428A.  OFFICE OF OMBUDSMAN
 Sec. 428A.001.  OFFICE OF OMBUDSMAN.  The office of the
 ombudsman is established at the commission to assist the
 commission, builders, and homeowners following the completion of
 the state-sponsored inspection and dispute resolution process.
 Sec. 428A.002.  QUALIFICATIONS. The commission shall hire a
 licensed attorney to act as ombudsman.
 Sec. 428A.003. POWERS AND DUTIES. (a) The ombudsman shall:
 (1)  facilitate defect repairs after the completion of
 the state-sponsored inspection and dispute resolution process;
 (2)  oversee staff to conduct a mediation process
 between builders and homeowners after the state-sponsored
 inspection and dispute resolution process concludes; and
 (3)  comment on rules and other policy changes being
 considered by the commission.
 (b) The ombudsman shall report directly to the commission.
 SECTION 22. Chapter 430, Property Code, is amended by
 adding Section 430.012 to read as follows:
 Sec. 430.012.  HOMEOWNER INFORMATION PAMPHLET.  (a)  The
 commission shall produce a homeowner information pamphlet to
 provide homeowners with basic information about the commission and
 the state-sponsored inspection and dispute resolution process.
 (b) The pamphlet must include information describing:
 (1) the commission's jurisdiction;
 (2)  the state-sponsored inspection and dispute
 resolution process;
 (3) statutory warranties;
 (4) building and performance standards; and
 (5)  how the items listed in Subdivisions (1) through
 (4) apply to a new or newly remodeled home.
 (c)  The commission shall make the pamphlet available
 through the commission's Internet website and in a hard-copy
 format.
 (d)  An escrow officer, as defined by Section 2501.003,
 Insurance Code, or an attorney performing closing services in which
 title insurance is not obtained, at a closing in which title to a
 new home is transferred shall provide the pamphlet produced by the
 commission under Subsection (a) to the person purchasing the new
 home.
 (e)  The commission shall provide the pamphlet to a homeowner
 after registration of the home under Section 426.003(b).
 SECTION 23. Section 446.004, Property Code, is amended to
 read as follows:
 Sec. 446.004. FEE INSPECTOR. A fee inspector must be either
 a licensed engineer, a registered architect, a professional
 inspector licensed by the Texas Real Estate Commission, a plumbing
 inspector employed by a municipality and licensed by the Texas
 State Board of Plumbing Examiners, a building inspector employed by
 a political subdivision, or a third-party inspector qualified under
 Section 427.001(b). A builder may use the same or a different fee
 inspector for inspections required under this chapter.
 SECTION 24. The following provisions of the Property Code
 are repealed:
 (1) Section 416.011;
 (2) Section 416.012(b);
 (3) Section 418.002(d); and
 (4) Section 428.001(c).
 SECTION 25. The Sunset Advisory Commission's report to the
 83rd Legislature shall evaluate:
 (1) the Texas Residential Construction Commission's
 overall performance; and
 (2) the ability of the Texas Residential Construction
 Commission to implement the changes in law made by this Act and
 management actions recommended by the 81st Legislature.
 SECTION 26. (a) Section 401.007, Property Code, as amended
 by this Act, applies only to an order regarding an emergency or a
 violation of a statute to which Chapter 401, Property Code, applies
 that occurs on or after the effective date of this Act. An order
 regarding an emergency or a violation of a statute that occurred
 before the effective date of this Act is governed by the law in
 effect at the time the emergency or violation occurred, and that law
 is continued in effect for that purpose.
 (b) Promptly after this Act takes effect, the governor shall
 appoint the two additional members to the Texas Residential
 Construction Commission as required by Section 406.001, Property
 Code, as amended by this Act. In appointing those members, the
 governor shall appoint one person to a term expiring February 1,
 2011, and one to a term expiring February 1, 2013.
 (c) Sections 416.012(c) and (e), Property Code, as amended
 by this Act, apply only to a renewal of a builder registration on or
 after September 1, 2011. The renewal of a builder registration
 before September 1, 2011, 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.
 (d) Sections 418.001 and 418.002, Property Code, as amended
 by this Act, apply only to a ground for disciplinary action that
 occurs on or after the effective date of this Act. A ground for
 disciplinary action that occurs before the effective date of this
 Act is governed by the law in effect at the time the ground for
 disciplinary action occurred and the law is continued in effect for
 that purpose.
 (e) Section 426.003, Property Code, as amended by this Act,
 applies only to a registration of a home that occurs on or after the
 effective date of this Act. A registration of a home 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.
 (f) Sections 426.005, 428.003, and 428.004, Property Code,
 as amended by this Act, apply only to a request for state-sponsored
 inspection and dispute resolution filed on or after the effective
 date of this Act. A request filed 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.
 (g) Not later than December 1, 2009, the Texas Residential
 Construction Commission shall adopt rules under Sections 428.0011
 and 428.006, Property Code, as added by this Act.
 (h) Sections 27.004(l-1) and 428.0041, Property Code, as
 added by this Act, apply only to inspection of a repair completed by
 a builder on or after the effective date of this Act. Inspection of
 a repair completed by a builder 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.
 (i) Not later than December 1, 2009, the Texas Residential
 Construction Commission shall hire an ombudsman as provided by
 Chapter 428A, Property Code, as added by this Act.
 SECTION 27. This Act takes effect September 1, 2009.