Bill Text: TX SB1215 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of a joint interim committee to study issues related to construction contracts.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Vetoed) 2017-06-15 - Vetoed by the Governor [SB1215 Detail]

Download: Texas-2017-SB1215-Comm_Sub.html
 
 
  By: Hughes S.B. No. 1215
 
  (Shine, Oliveira, Workman, Kacal)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to responsibility for the consequences of defects in the
  plans, specifications, or related documents for the construction or
  repair of an improvement to real property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 4, Business & Commerce Code, is amended by
  adding Chapter 59 to read as follows:
  CHAPTER 59.  RESPONSIBILITY FOR DEFECTS IN PLANS AND
  SPECIFICATIONS
         Sec. 59.001.  APPLICABILITY.  This chapter applies only to a
  contract for the construction or repair of an improvement to real
  property.
         Sec. 59.002.  DEFINITION. In this chapter, "contractor"
  means a person required to perform work under a contract.
         Sec. 59.003.  CONTRACTOR NOT RESPONSIBLE FOR CERTAIN
  DEFECTS. (a)  A contractor is not responsible for the consequences
  of defects in and may not warranty the accuracy, adequacy,
  sufficiency, or suitability of plans, specifications, or other
  design or bid documents provided to the contractor by: 
               (1)  the person with whom the contractor entered into
  the contract; or
               (2)  another person on behalf of the person with whom
  the contractor entered into the contract.
         (b)  A contractor must disclose to the owner a condition
  discovered during construction that was not known or could not have
  reasonably been known at the time of design.
         (c)  A contractor who fails to disclose a condition as
  required by Subsection (b) may be liable for defects that result
  from the failure to disclose.
         Sec. 59.004.  WAIVER OF CHAPTER PROHIBITED. A person may not
  waive this chapter by any means.  A purported waiver of this chapter
  is void.
         SECTION 2.  (a)  The changes in law made by this Act apply
  only to a contract for the construction or repair of an improvement
  to real property entered into on or after the effective date of this
  Act. A contract entered into before the effective date of this Act
  is governed by the law in effect when the contract was entered into,
  and the former law is continued in effect for that purpose.
         (b)  An original contract for the construction or repair of
  an improvement to real property with the owner of an interest in
  real property that is entered into before the effective date of this
  Act, and a subcontract or purchase order for providing labor or
  materials associated with that original contract, whether the
  subcontract or purchase order is entered into before, on, or after
  the effective date of this Act, is governed by the law in effect
  when the original contract was entered into, and the former law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2017.
 
 
  COMMITTEE AMENDMENT NO. 1
         Amend SB 1215 (engrossed) as follows:
         (1)  On page 1, line 16, strike the word "A", and before the
  word "contractor" insert "Except as provided by Sec. 59.004, a";
  and
         (2)  On page 2, lines 6 through line 8, strike all language
  and substitute "Sec. 59.004.  WAIVER OF CHAPTER.  A person may not
  waive this chapter unless the contractor agrees to do so in writing
  with the person with whom the contractor entered the contract."
  Oliveira
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