1-1  By:  Harris                                            S.B. No. 662
    1-2        (In the Senate - Filed February 20, 1995; February 21, 1995,
    1-3  read first time and referred to Committee on Jurisprudence;
    1-4  April 19, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 4, Nays 0; April 19, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 662                   By:  Harris
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to certain agreements for the payment of subcontractors.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Subchapter D, Chapter 35, Business & Commerce
   1-13  Code, is amended by adding Section 35.521 to read as follows:
   1-14        Sec. 35.521.  AGREEMENT FOR PAYMENT OF CONSTRUCTION
   1-15  SUBCONTRACTOR.  (a)  A provision of a contract or other agreement
   1-16  by which payment from an original contractor to a subcontractor is
   1-17  conditioned on receipt of payment from another person, including a
   1-18  private or public owner for whom an improvement is being made, is
   1-19  against public policy and is void.
   1-20        (b)  In this section:
   1-21              (1)  "Original contractor" means a person who contracts
   1-22  with an owner to improve the owner's real property.  It includes a
   1-23  person who performs construction, construction management services,
   1-24  remodeling, repairs, or improvements to the property.
   1-25              (2)  "Owner" means a person who has an interest in real
   1-26  property.
   1-27              (3)  "Subcontractor" means a person who contracts to
   1-28  furnish labor or material to an original contractor or another
   1-29  subcontractor in connection with a contract to improve real
   1-30  property.
   1-31        SECTION 2.  This Act applies only to a contract or other
   1-32  agreement entered into on or after the effective date of this Act.
   1-33        SECTION 3.  This Act takes effect September 1, 1995.
   1-34        SECTION 4.  The importance of this legislation and the
   1-35  crowded condition of the calendars in both houses create an
   1-36  emergency and an imperative public necessity that the
   1-37  constitutional rule requiring bills to be read on three several
   1-38  days in each house be suspended, and this rule is hereby suspended.
   1-39                               * * * * *