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A BILL TO BE ENTITLED
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AN ACT
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relating to the resolution of certain contract disputes through a |
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contractual appraisal process. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 154, Civil Practice and Remedies Code, |
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is amended by adding Subchapter E to read as follows: |
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SUBCHAPTER E. RESOLUTION OF DISPUTES BY CONTRACTUAL APPRAISAL |
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PROCESS |
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Sec. 154.101. TIME FOR INVOKING APPRAISAL. A party that |
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receives written notice of a dispute that may be subject to a |
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contractual appraisal process meant to determine the amount of a |
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loss covered by the contract may not invoke that appraisal process |
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after the 60th day after the date the party receives the notice. |
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Sec. 154.102. PURPOSE OF APPRAISAL; OTHER DUTIES NOT |
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AFFECTED. (a) A party that may be liable under a contract for a loss |
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the amount of which may be determined through a contractual |
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appraisal process is required to promptly investigate and pay any |
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obligation under the contract, notwithstanding the existence of the |
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appraisal provision in the contract. |
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(b) A contractual appraisal process does not serve any |
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purpose other than the resolution of a dispute regarding the amount |
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of a covered loss that must be paid under the contract. The |
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appraisal process does not absolve a party from an |
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extra-contractual obligation, including a statutory or common law |
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obligation to timely investigate and pay a contractual obligation |
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in good faith, or exempt a party from the prompt payment of |
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penalties or attorney's fees ordinarily recoverable when a party |
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fails to adequately and timely pay a covered loss. |
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Sec. 154.103. CONFLICT WITH OTHER LAW. (a) Except as |
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provided by Subsection (b), this subchapter controls over any other |
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law to the extent of a conflict. |
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(b) This subchapter does not apply to a dispute that is |
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subject to Section 2210.574, Insurance Code. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |