Texas 2019 - 86th Regular

Texas House Bill HB2268 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~86R23559~~ CLG-F
	1	+	86R6933 CLG-F
2	2		By: Thompson of Harris H.B. No. 2268
3		-	Substitute the following for H.B. No. 2268:
4		-	By: Collier C.S.H.B. No. 2268
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to a provision in a construction contract that
10	8		incorporates the terms and conditions of another document.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 272.0001, Business & Commerce Code, is
13	11		amended to read as follows:
14	12		Sec. 272.0001. DEFINITIONS [DEFINITION]. In this chapter:
15	13		(1) "Construction[,"construction] contract" means a
16	14		contract, subcontract, or agreement entered into or made by an
17	15		owner, architect, engineer, contractor, construction manager,
18	16		subcontractor, supplier, or material or equipment lessor for the
19	17		design, construction, alteration, renovation, remodeling, or
20	18		repair of, or for the furnishing of material or equipment for, a
21	19		building, structure, appurtenance, or other improvement to or on
22	20		public or private real property, including moving, demolition, and
23	21		excavation connected with the real property. The term includes an
24	22		agreement to which an architect, engineer, or contractor and an
25	23		owner's lender are parties regarding an assignment of the
26	24		construction contract or other modifications thereto.
27	25		(2) "Copy" means an accurate reproduction of an
28	26		original document reproduced in paper form or in an electronic
29	27		format that a person can access, download, save, and print for the
30	28		person's own records.
31	29		(3) "Original contract" means an agreement to which an
32	30		owner is a party either directly or by implication of law.
33	31		(4) "Original contractor" means a person contracting
34	32		with an owner directly or through the owner's agent.
35	33		(5) "Owner" means a person who owns any interest in
36	34		real property or an authorized agent, trustee, or receiver of the
37	35		person.
38	36		(6) "Subcontractor" means a person who furnishes labor
39	37		or materials to fulfill an obligation to an original contractor or
40	38		to a subcontractor of any tier to perform all or part of the work
41	39		required by an original contract.
42	40		SECTION 2. The heading to Section 272.001, Business &
43	41		Commerce Code, is amended to read as follows:
44	42		Sec. 272.001. VOIDABLE CONTRACT PROVISIONS [PROVISION].
45	43		SECTION 3. Section 272.001, Business & Commerce Code, is
46		-	amended by adding Subsections (c), (d), (e), (f)~~, (g), and (h)~~ to
47		-	~~read as~~ follows:
48		-	(c) Except as provided by Subsection (g), a provision in a
	44	+	amended by adding Subsections (c), (d), (e), and (f) to read as
	45	+	follows:
	46	+	(c) Except as provided by Subsection (f), a provision in a
49	47		construction contract between an original contractor and owner that
50	48		incorporates the terms and conditions of another document, by
51		-	reference or otherwise, is voidable by the original contractor if,
52		-	on written request, the owner does not provide a copy of the
53		-	incorporated document to the original contractor on or before the
54		-	10th day before the date the contract is executed. This subsection
55		-	does not preclude the owner from redacting information from a
56		-	document to be incorporated into the contract, provided that any
57		-	redacted information may not be incorporated into the contract by
58		-	reference or otherwise. The owner may request the original
59		-	contractor to sign, date, and submit to the owner a written
60		-	statement acknowledging receipt of the copy of the incorporated
61		-	document. The written statement acknowledging receipt must be
62		-	provided separately from the construction contract.
63		-	(d) Except as provided by Subsection (g), a provision in a
	49	+	reference or otherwise, is voidable by the original contractor if
	50	+	the owner does not provide a copy of the incorporated document to
	51	+	the original contractor before the contract is executed. This
	52	+	subsection does not preclude the owner from redacting information
	53	+	from a document to be incorporated into the contract, provided that
	54	+	any redacted information may not be incorporated into the contract
	55	+	by reference or otherwise.
	56	+	(d) Except as provided by Subsection (f), a provision in a
64	57		construction contract between a subcontractor and an original
65	58		contractor that incorporates the terms and conditions of another
66	59		document, by reference or otherwise, is voidable by the
67		-	subcontractor if, on written request, the original contractor does
68		-	not provide a copy of the incorporated document to the
69		-	subcontractor on or before the 10th day before the date the contract
	60	+	subcontractor if the original contractor does not provide a copy of
	61	+	the incorporated document to the subcontractor before the contract
70	62		is executed. This subsection does not preclude the original
71	63		contractor from redacting information from a document to be
72	64		incorporated into the contract, provided that any redacted
73	65		information may not be incorporated into the contract by reference
74		-	or otherwise. The original contractor may request the
75		-	subcontractor to sign, date, and submit to the original contractor
76		-	a written statement acknowledging receipt of the copy of the
77		-	incorporated document. The written statement acknowledging
78		-	receipt must be provided separately from the construction contract.
79		-	(e) Except as provided by Subsection (g), a provision in a
80		-	construction contract between a subcontractor and another
81		-	subcontractor that incorporates the terms and conditions of another
82		-	document, by reference or otherwise, is voidable by the
83		-	subcontractor who is to furnish labor or materials to fulfill an
84		-	obligation to the other subcontractor if, on written request, the
85		-	subcontractor to whom the requesting subcontractor is obligated
86		-	does not provide a copy of the incorporated document to the
87		-	requesting subcontractor on or before the 10th day before the date
88		-	the contract is executed. This subsection does not preclude a
89		-	subcontractor from redacting information from a document to be
90		-	incorporated into the contract, provided that any redacted
91		-	information may not be incorporated into the contract by reference
92		-	or otherwise. The subcontractor providing the copy of the document
93		-	may request the other subcontractor to sign, date, and submit a
94		-	written statement acknowledging receipt of the copy of the
95		-	incorporated document. The written statement acknowledging
96		-	receipt must be provided separately from the construction contract.
97		-	(f) A provision in a construction contract made void by a
98		-	party to the contract under Subsection (c), (d), or (e) is void only
99		-	to the extent of the provision's applicability to the incorporated
	66	+	or otherwise.
	67	+	(e) A provision in a construction contract made void by a
	68	+	party to the contract under Subsection (c) or (d) is void only to
	69	+	the extent of the provision's applicability to the incorporated
100	70		document not provided to the party.
101		-	(g) Subsections (c)~~, (d),~~ and (e) do not apply to the
	71	+	(f) Subsections (c) and (d) do not apply to the
102	72		incorporation of a publicly available document.
103		-	(h) An owner, original contractor, or subcontractor may
104		-	provide a copy of an incorporated document to the other party to a
105		-	construction contract under Subsection (c), (d), or (e) by
106		-	providing a link to the document on an Internet website or file
107		-	hosting service that may be accessed by the other party free of
108		-	charge for the duration of the contract. The version of the
109		-	incorporated document that is accessible on the date the party
110		-	receives the information necessary to access the document is the
111		-	version of the document that is incorporated into the contract.
112	73		SECTION 4. The changes in law made by this Act apply only to
113	74		a contract that is entered into on or after the effective date of
114	75		this Act.
115	76		SECTION 5. This Act takes effect September 1, 2019.