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A BILL TO BE ENTITLED
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AN ACT
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relating to civil liability and responsibility for the consequences |
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of defects in the plans, specifications, or related documents for |
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the construction or repair of an improvement to real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 4, Business & Commerce Code, is amended by |
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adding Chapter 59 to read as follows: |
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CHAPTER 59. RESPONSIBILITY FOR DEFECTS IN PLANS AND SPECIFICATIONS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 59.0001. DEFINITIONS. In this chapter: |
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(1) "Construction" includes: |
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(A) the initial construction of an improvement to |
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real property; |
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(B) the construction of an addition to an |
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improvement to real property; or |
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(C) the repair, alteration, or remodeling of an |
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improvement to real property. |
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(2) "Contractor" means a person engaged in the |
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business of developing, constructing, fabricating, repairing, |
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altering, or remodeling improvements to real property. |
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(3) "Critical infrastructure facility" has the |
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meaning assigned by Section 423.0045, Government Code. |
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(4) "Subcontractor" means a contractor directly |
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retained and compensated by another contractor to perform labor or |
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perform labor and supply materials in the construction. |
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SUBCHAPTER B. CONTRACTOR RESPONSIBILITY |
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Sec. 59.0051. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to a contract for the construction or |
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repair of an improvement to real property. |
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(b) This subchapter does not apply to a contract entered |
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into by a person for the construction or repair of a critical |
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infrastructure facility owned or operated by the person or any |
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building, structure, improvement, appurtenance, or other facility |
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owned by the person that is necessary to the business operations |
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associated with the critical infrastructure facility. For purposes |
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of this subsection, "person" includes a parent, subsidiary, |
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affiliated entity, joint venture partner, or owner of the person. |
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Sec. 59.0052. LIMITATION ON CONTRACTOR'S LIABILITY AND |
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RESPONSIBILITY FOR CERTAIN DEFECTS. (a) A contractor is not |
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responsible for the consequences of defects in and may not warranty |
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the accuracy, adequacy, sufficiency, or suitability of plans, |
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specifications, or other design or bid documents provided to the |
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contractor by: |
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(1) the person with whom the contractor entered into |
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the contract; or |
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(2) another person on behalf of the person with whom |
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the contractor entered into the contract. |
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(b) A contractor must disclose in writing to the person with |
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whom the contractor enters into a contract the existence of any |
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known defect in the plans, specifications, or other design or bid |
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documents discovered by the contractor before or during |
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construction. |
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(c) A contractor who fails to disclose a condition as |
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required by Subsection (b) may be liable for defects that result |
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from the failure to disclose. |
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Sec. 59.0053. WAIVER PROHIBITED. This subchapter may not |
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be waived by a contractor, subcontractor, or owner. A purported |
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waiver of this subchapter in violation of this section is void. |
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SECTION 2. Subchapter A, Chapter 2254, Government Code, is |
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amended by adding Section 2254.0041 to read as follows: |
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Sec. 2254.0041. ARCHITECT'S OR ENGINEER'S STANDARD OF CARE. |
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(a) A governmental entity may not require in a contract for |
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architectural or engineering services related to the construction |
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or repair of an improvement to real property, or in a contract |
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related to the construction or repair of an improvement to real |
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property that contains architectural or engineering services as a |
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component part, that the architectural or engineering services be |
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performed to a level of professional skill and care beyond that |
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which would be provided by an ordinarily prudent architect or |
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engineer with the same professional license under the same or |
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similar circumstances. |
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(b) Nothing in this section prevents a party to a contract |
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for architectural or engineering services from enforcing specific |
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obligations in the contract that are separate from the standard of |
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care. |
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SECTION 3. (a) The changes in law made by this Act apply |
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only to a contract entered into on or after the effective date of |
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this Act. A contract entered into before the effective date of this |
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Act is governed by the law in effect when the contract was entered |
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into, and the former law is continued in effect for that purpose. |
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(b) An original contract for the construction or repair of |
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an improvement to real property with the owner of an interest in |
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real property that is entered into before the effective date of this |
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Act, and a subcontract or purchase order for providing labor or |
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materials associated with that original contract, whether the |
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subcontract or purchase order is entered into before, on, or after |
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the effective date of this Act, is governed by the law in effect |
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when the original contract was entered into, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |