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A BILL TO BE ENTITLED
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AN ACT
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relating to damages in an action arising out of a deficiency in the |
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construction or repair of an improvement to real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 41, Civil Practice and Remedies Code, is |
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amended by adding Section 41.014 to read as follows: |
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Sec. 41.014. DAMAGES FOR CONSTRUCTION DEFECT. (a) In this |
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section, "construction defect" means a deficiency in the |
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construction or repair of an improvement to real property. |
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(b) This section applies only to a claim against a person |
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who constructed or repaired an improvement to real property to |
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recover the cost of curing a construction defect. |
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(c) This section applies to a claim regardless of whether |
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the claim is asserted by a person who contracted for the |
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construction or repair. |
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(d) The amount of actual damages for the cost to cure a |
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construction defect that might otherwise be awarded in a claim |
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subject to this section is reduced by 10 percent for each |
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anniversary of the date of substantial completion of the |
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construction or repair that occurs before the date the action |
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asserting the claim is filed. An award of exemplary damages, |
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multiplied damages, or other damages that is computed on the basis |
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of the amount awarded as damages for the cost to cure the |
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construction defect must reflect any reduction of that amount under |
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this section. |
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SECTION 2. The change in law made by this Act applies only |
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to construction or repair of an improvement to real property |
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commenced on or after the effective date of this Act under a |
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contract entered into on or after the effective date of this Act. |
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Construction or repair of an improvement to real property under a |
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contract entered into before the effective date of this Act is |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |