By: J. Davis of Harris (Senate Sponsor - Jackson) H.B. No. 1711
(In the Senate - Received from the House April 27, 2011;
May 2, 2011, read first time and referred to Committee on Economic
Development; May 13, 2011, reported favorably by the following
vote: Yeas 6, Nays 0; May 13, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to disaster remediation contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 4, Business & Commerce Code, is amended by
adding Chapter 57 to read as follows:
CHAPTER 57. DISASTER REMEDIATION CONTRACTS
Sec. 57.001. DEFINITIONS. In this chapter:
(1) "Disaster remediation" means the removal,
cleaning, sanitizing, demolition, reconstruction, or other
treatment of improvements to real property performed because of
damage or destruction to that property caused by a natural
disaster.
(2) "Disaster remediation contractor" means a person
who engages in disaster remediation for compensation, other than a
person who has a permit, license, registration, or other
authorization from the Texas Commission on Environmental Quality
for the collection, transportation, treatment, storage,
processing, or disposal of solid waste.
(3) "Natural disaster" means the occurrence of
widespread or severe damage, injury, or loss of life or property
related to any natural cause, including fire, flood, earthquake,
wind, storm, or wave action, that results in a disaster declaration
by the governor under Chapter 418, Government Code.
(4) "Person" means an individual, corporation, trust,
partnership, association, or other private legal entity.
Sec. 57.002. APPLICABILITY OF CHAPTER. (a) Except as
provided by Subsection (b), this chapter applies to a contract
between a person and a disaster remediation contractor for the
performance of disaster remediation services on property owned or
leased by the person.
(b) This chapter does not apply to a contract between a
person and a disaster remediation contractor for the performance of
disaster remediation services on property owned or leased by the
person if the contractor maintains for at least one year preceding
the date of the contract a physical business address in:
(1) the county in which the property is located; or
(2) a county adjacent to the county in which the
property is located.
Sec. 57.003. DISASTER REMEDIATION CONTRACT REQUIREMENTS;
CERTAIN CONDUCT PROHIBITED. (a) A contract subject to this chapter
must be in writing.
(b) A disaster remediation contractor:
(1) may not require a person to make a full or partial
payment under a contract before the contractor begins work;
(2) may not require that the amount of any partial
payment under the contract exceed an amount reasonably
proportionate to the work performed, including any materials
delivered; and
(3) shall include in any contract for disaster
remediation services the following statement in conspicuous,
boldfaced type of at least 10 points in size: "This contract is
subject to Chapter 57, Business & Commerce Code. A contractor may
not require a full or partial payment before the contractor begins
work and may not require partial payments in an amount that exceeds
an amount reasonably proportionate to the work performed, including
any materials delivered."
Sec. 57.004. DECEPTIVE TRADE PRACTICE. A violation of this
chapter by a disaster remediation contractor is a false,
misleading, or deceptive act or practice as defined by Section
17.46(b), and any remedy under Subchapter E, Chapter 17, is
available for a violation of this chapter.
Sec. 57.005. WAIVER OF CHAPTER PROHIBITED. A person may not
waive this chapter by contract or other means. A purported waiver
of this chapter is void.
SECTION 2. The change in law made by this Act applies only
to a contract for the performance of disaster remediation services
that is entered into on or after the effective date of this Act. A
contract entered into before the effective date of this Act is
governed by the law in effect on the date the contract was entered
into, and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.
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