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Amend CSHB 2397 as follows:                                                  
	(1) On page 2, strike SECTION 3 and renumber subsequent 
SECTIONS appropriately.
	(2) On page 3, beginning on line 24, strike all of Section 
2251.052 and insert the following:
	Sec. 2251.052. SUBCONTRACTOR REMEDY FOR VENDOR'S NONPAYMENT 
OF CONTRACT. (a) A subcontractor of a vendor under a contract with a 
governmental entity may suspend performance required under the 
contract with the vendor if:
		(1) the governmental entity with whom the 
subcontractor's vendor has a contract does not pay the vendor an 
undisputed amount within the time limits provided by Subchapter B; 
or
		(2) the governmental entity with whom the 
subcontractor's vendor has a contract has paid the vendor 
undisputed amounts and the vendor does not pay the subcontractor an 
undisputed amount within the time limits provided by Subchapter B.
	(b) A subcontractor who suspends performance under 
subsection (a) must give the vendor written notice, a copy of which 
the subcontractor may provide the governmental entity with whom the 
vendor has a contract,:
			(A) informing the vendor that payment has not been 
received; and    
			(B) stating the intent of the subcontractor to 
suspend performance for nonpayment.
	(c) The subcontractor may not suspend performance under this 
section before the later of:
		(1) the 10th day after the date the subcontractor gives 
notice under Subsection (b); or
		(2) the date specified by Section 2251.053(b), if 
applicable.        
	(d) A subcontractor who suspends performance under this 
section is not:
		(1) required to supply further labor, services, or 
materials until the subcontractor is paid the amount provided for 
under the contract, plus costs for demobilization and 
remobilization; or
		(2) responsible for damages resulting from suspending 
work if the vendor has not notified the subcontractor in writing 
before performance is suspended that payment has been made or the 
governmental entity has notified the vendor that a bona fide 
dispute for payment exists.
	(e) A notification under Subsection (d)(2) that a bona fide 
dispute for payment exists must include a list of the specific 
reasons for nonpayment.  If a reason specified is that labor, 
services, or materials provided by the subcontractor are not 
provided in compliance with the contract, the subcontractor is 
entitled to a reasonable opportunity to:
		(1) cure the noncompliance of the listed items; or                     
		(2) offer a reasonable amount to compensate for listed 
items for which noncompliance cannot be promptly cured.
	(3) On page 5, line 11, strike "HIGHWAY" and substitute 
"HIGHWAY-RELATED".
	(4) On page 5 line 13, between "construction" and "of", 
insert "or maintenance".
	(5) On page 5, line 13, between "highway" and the period, 
insert "or a related facility"
	(6) On page 5, line 23, strike "or personally delivered"