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