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By:  Kuempel                                                      H.B. No. 1699



A BILL TO BE ENTITLED

AN ACT

relating to the liability of highway, road and street contractors.            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 4 of the Civil Practice & Remedies Code is 
hereby amended by adding Chapter 95A to read as follows:

CHAPTER 95A.  LIABILITY OF CONTRACTORS OF

HIGHWAYS, ROADS OR STREETS
	Sec. 95A.001.  LIMIT ON LIABILITY.  (a)  A contractor who 
performs the construction or repair of any highway, road or street 
for any governmental unit is not liable for personal injury, 
property damage, or death to third parties resulting from or 
arising out of the performance of or any failure to perform the 
construction or repair if, at the time of such personal injury, 
property damage or death, the contractor is in substantial 
compliance with all specifications for such construction or repair 
required by the contracting governmental unit.
	(b)  A contractor who performs the construction or repair of 
any highway, road or street for any governmental unit may be liable 
for personal injury, property damage, or death to third parties 
resulting from or arising out of the performance of or any failure 
to perform the construction or repair if, at the time of such 
personal injury, property damage or death, the contractor is not in 
substantial compliance with all specifications for such 
construction or repair required by the contracting governmental 
unit and such failure is the proximate cause of the personal injury, 
property damage or death to a third party.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies to a cause of action that accrues on or after that date.  An 
action that accrued before the effective date of this Act is 
governed by the law in effect at the time the action accrued, and 
that law is continued in effect for that purpose.