By Bosse, Williams H.B. No. 1742
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to residential construction liability.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 27.001(3), Property Code, is amended to
1-5 read as follows:
1-6 (3) "Contractor" means:
1-7 (A) a person contracting with an owner for the
1-8 construction or sale of a new residence constructed by that
1-9 person;
1-10 (B) a person contracting with an owner for the
1-11 [or of an] alteration or repair of or addition to an existing
1-12 residence;
1-13 (C) a person contracting with an owner for the
1-14 [, repair of a new or existing residence, or] construction, [sale,]
1-15 alteration, addition, or repair of an appurtenance to a new or
1-16 existing residence;
1-17 (D) a person providing a warranty covering
1-18 defects in a residence or a person administering the warranty on
1-19 behalf of the person providing the warranty;
1-20 (E) a person insuring [. The term "contractor"
1-21 also includes a risk retention group registered under Article
1-22 21.54, Insurance Code, that insures] all or any part of a
1-23 contractor's liability for the cost to repair a residential
1-24 construction defect; or
2-1 (F) an officer, director, shareholder, or
2-2 employee of the contractor or a subcontractor or design
2-3 professional hired by the contractor to perform the construction,
2-4 alteration, addition, or repair.
2-5 SECTION 2. Section 27.002(a), Property Code, is amended to
2-6 read as follows:
2-7 (a) This chapter applies to any action to recover damages
2-8 resulting from a construction defect, except a claim for personal
2-9 injury, survival, or wrongful death or for damage to goods, by an
2-10 owner of a residence, including an owner subsequent to the owner
2-11 contracting with the contractor. To the extent of conflict between
2-12 this chapter and any other law, including the Deceptive Trade
2-13 Practices-Consumer Protection Act (Subchapter E, Chapter 17,
2-14 Business & Commerce Code), this chapter prevails.
2-15 SECTION 3. Sections 27.004(g) and (i), Property Code, are
2-16 amended to read as follows:
2-17 (g) If a contractor fails to make a reasonable offer under
2-18 this section, or fails to make a reasonable attempt to complete the
2-19 repairs specified in an accepted offer made under this section, or
2-20 fails to complete, in a good and workmanlike manner, the repairs
2-21 specified in an accepted offer made under this section, the
2-22 limitations on damages and defenses to liability provided for in
2-23 Subsection (f) [this section] shall not apply.
2-24 (i) The total damages awarded in a suit subject to this
2-25 chapter, excluding reasonable and necessary attorney's fees,
2-26 arbitration expenses, and taxable costs, may not exceed the greater
2-27 of the claimant's purchase price for the residence or the fair
3-1 market value of the residence without the construction defect.
3-2 SECTION 4. The changes in law made by this Act apply only to
3-3 an action for residential construction liability filed on or after
3-4 the effective date of this Act. An action filed before the
3-5 effective date of this Act is governed by the law in effect at the
3-6 time of filing, and the prior law is continued in effect for that
3-7 purpose.
3-8 SECTION 5. This Act takes effect September 1, 1997.
3-9 SECTION 6. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.