By Gray H.B. No. 2641 74R4676 LJR-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain agreements for the payment of subcontractors. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-5 Code, is amended by adding Section 35.521 to read as follows: 1-6 Sec. 35.521. AGREEMENT FOR PAYMENT OF CONSTRUCTION 1-7 SUBCONTRACTOR. (a) A provision of a contract or other agreement 1-8 by which payment from an original contractor to a subcontractor is 1-9 conditioned on receipt of payment from another person, including a 1-10 private or public owner for whom an improvement is being made, is 1-11 against public policy and is void. 1-12 (b) In this section: 1-13 (1) "Original contractor" means a person who directly 1-14 or indirectly contracts with an owner to improve the owner's real 1-15 property, including construction, remodeling, repair, or 1-16 improvement of the property. 1-17 (2) "Owner" means a person who has an interest in real 1-18 property. 1-19 (3) "Subcontractor" means a person who contracts to 1-20 furnish labor or material to an original contractor or another 1-21 subcontractor in connection with a contract to improve real 1-22 property. 1-23 SECTION 2. This Act applies only to a contract or other 1-24 agreement entered into on or after the effective date of this Act. 2-1 SECTION 3. This Act takes effect September 1, 1995. 2-2 SECTION 4. The importance of this legislation and the 2-3 crowded condition of the calendars in both houses create an 2-4 emergency and an imperative public necessity that the 2-5 constitutional rule requiring bills to be read on three several 2-6 days in each house be suspended, and this rule is hereby suspended.