76R11068 PAM-F
By Brimer H.B. No. 2717
Substitute the following for H.B. No. 2717:
By Brimer C.S.H.B. No. 2717
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contracts involving the construction or repair of
1-3 improvements to private or public real property.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 162.006(a), Property Code, is amended to
1-6 read as follows:
1-7 (a) A contractor who enters into a written contract or
1-8 written purchase order with a property owner to construct
1-9 improvements to a residential homestead for an amount exceeding
1-10 $5,000 shall deposit the trust funds in a construction account in a
1-11 financial institution.
1-12 SECTION 2. Section 35.52, Business & Commerce Code, is
1-13 amended by amending Subsections (b) and (c) and adding Subsection
1-14 (e) to read as follows:
1-15 (b) A contract is principally for the construction or repair
1-16 of improvements to real property located in this state if the
1-17 contract obligates a party, as its principal obligation under the
1-18 contract, to provide labor, materials, or equipment [labor and
1-19 materials,] for the construction or repair of improvements to real
1-20 property located in this state as a general contractor or
1-21 subcontractor.
1-22 (c) A contract is not principally for the construction or
1-23 repair of improvements to real property located in this state if:
1-24 (1) the contract is a partnership agreement or other
2-1 agreement governing an entity or trust;
2-2 (2) the contract provides for a loan or other
2-3 extension of credit and the party promising to construct or repair
2-4 improvements does so as part of its agreement [agreements] with the
2-5 lender or other extender of credit; or
2-6 (3) the contract is for the management of real
2-7 property or improvements and the obligation to construct or repair
2-8 is part of that management.
2-9 (e) A judgment rendered by a court or a decision issued by
2-10 an arbitrator that is inconsistent with this section is not
2-11 enforceable in this state.
2-12 SECTION 3. Section 130.001, Civil Practice and Remedies
2-13 Code, is amended to read as follows:
2-14 Sec. 130.001. DEFINITION. In this chapter "construction
2-15 contract" means a contract or agreement made and entered into by an
2-16 owner, contractor, subcontractor, artisan, or supplier concerning
2-17 the construction, alteration, repair, or maintenance of a building,
2-18 structure, appurtenance, road, highway, bridge, dam, levee, or
2-19 other improvement to or on real property in this state, including
2-20 moving, demolition, abatement, and excavation connected with the
2-21 real property.
2-22 SECTION 4. Section 2166.259(c), Government Code, is amended
2-23 to read as follows:
2-24 (c) The commission shall provide for the centralized
2-25 purchasing of:
2-26 (1) workers' compensation insurance coverage;
2-27 (2) employer's liability insurance coverage;
3-1 (3) commercial general and excess liability coverage;
3-2 (4) payment and performance bonds;
3-3 (5) pollution liability coverage; and
3-4 (6) [(5)] other similar coverage the commission
3-5 considers necessary and reasonable for the public works project.
3-6 SECTION 5. Section 2166.305(a), Government Code, is amended
3-7 to read as follows:
3-8 (a) The commission shall require a review of the uniform
3-9 general conditions of state building construction contracts
3-10 whenever the commission considers review worthwhile, but not less
3-11 frequently than once every three [five] years.
3-12 SECTION 6. Section 406.096(c), Labor Code, is amended to
3-13 read as follows:
3-14 (c) A contractor who has a contract that requires workers'
3-15 compensation insurance coverage may provide the coverage through a
3-16 group plan, self-insurance plan certified under Chapter 407, or
3-17 other method satisfactory to the governing body of the governmental
3-18 entity.
3-19 SECTION 7. (a) This Act takes effect September 1, 1999.
3-20 (b) The changes in law made by this Act apply only to a
3-21 contract or agreement involving the construction or repair of
3-22 improvements to private or public real property that is entered
3-23 into on or after the effective date of this Act. A contract or
3-24 agreement entered into before the effective date of this Act is
3-25 governed by the law in effect when the contract or agreement was
3-26 entered into, and the former law is continued in effect for that
3-27 purpose.
4-1 SECTION 8. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.