By:  Wilson                                           H.B. No. 2476
       73R6788 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the payment of subcontractors by a contractor.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Chapter 35, Texas Business & Commerce Code, is
    1-5  amended by adding Section 35.56 to read as follows:
    1-6        Sec. 35.56.  PAYMENT.  (a)  Any provision of a contract,
    1-7  agreement or understanding whereby payment from an original
    1-8  contractor to a subcontractor is conditioned upon receipt of such
    1-9  payment from any other party including a private or public owner,
   1-10  is void and against public policy.
   1-11        (b)  Definition.
   1-12              In this section:
   1-13              The term "original contractor" shall have the same
   1-14  meaning as that term is defined in Section 53.001(7), Subchapter A,
   1-15  Property Code, V.A.C.S.
   1-16              The term "subcontractor" shall have the same meaning as
   1-17  that term is defined in Section 53.001(10), Subchapter A, Property
   1-18  Code, V.A.C.S.
   1-19        SECTION 2.  This act applies only to payment due after the
   1-20  effective date of this Act.
   1-21        SECTION 3.  This Act takes effect September 1, 1993.
   1-22        SECTION 4.  The importance of this legislation and the
   1-23  crowded condition of the calendars in both houses create an
   1-24  emergency and an imperative public necessity that the
    2-1  constitutional rule requiring bills to be read on three several
    2-2  days in each house be suspended, and this rule is hereby suspended.