SRC-CTC S.B. 623 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 623
2001S0439/1By: Duncan
Business & Commerce
2/19/2001
As Filed


DIGEST AND PURPOSE 

In 1989, the Residential Construction Liability Act (RCLA) became effective
and, along with its subsequent amendments, provides remedies applicable to
residential construction defect lawsuits. Recently, the courts have begun
construing RCLA in ways that run contrary to the original intent of the
legislation.  As proposed, S.B. 623 clarifies RCLA on these certain issues
so that the courts will apply the law consistently with the legislature's
original intent. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 27.002(a), Property Code, to provide that this
chapter applies to any action, rather than any action to recover damages,
resulting from a construction defect, with exceptions. 

SECTION 2.  Amends Section 27.004(g), Property Code, to delete wording
relating to the defenses to liability provided for in this section.
Provides that the limitations on damages provided for in Subsection (f),
rather than this section, shall not apply and Subsection (h) shall control
under certain circumstances. 

SECTION 3.  Effective date: September 1, 2001.