| 1 | 1 | | 88R4436 JES-F |
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| 2 | 2 | | By: Hughes S.B. No. 803 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the award of compensatory damages caused by certain |
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| 8 | 8 | | delays under governmental construction contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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| 11 | 11 | | amended by adding Section 2252.909 to read as follows: |
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| 12 | 12 | | Sec. 2252.909. LIMITATION OF COMPENSATORY DAMAGES CAUSED BY |
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| 13 | 13 | | GOVERNMENTAL DELAYS IN CONSTRUCTION CONTRACTS PROHIBITED. (a) In |
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| 14 | 14 | | this section: |
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| 15 | 15 | | (1) "Contractor" means a person engaged in the |
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| 16 | 16 | | business of developing, constructing, fabricating, repairing, |
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| 17 | 17 | | altering, or remodeling improvements to real property. |
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| 18 | 18 | | (2) "Governmental entity" means: |
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| 19 | 19 | | (A) the state; |
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| 20 | 20 | | (B) a municipality, county, public school |
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| 21 | 21 | | district, or special-purpose district or authority; |
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| 22 | 22 | | (C) a district, county, or justice of the peace |
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| 23 | 23 | | court; |
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| 24 | 24 | | (D) a board, commission, department, office, or |
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| 25 | 25 | | other agency in the executive branch of state government, including |
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| 26 | 26 | | an institution of higher education as defined by Section 61.003, |
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| 27 | 27 | | Education Code; |
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| 28 | 28 | | (E) the legislature or a legislative agency; or |
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| 29 | 29 | | (F) the Supreme Court of Texas, the Texas Court |
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| 30 | 30 | | of Criminal Appeals, a court of appeals, or the State Bar of Texas |
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| 31 | 31 | | or another judicial agency having statewide jurisdiction. |
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| 32 | 32 | | (b) A construction contract between a governmental entity |
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| 33 | 33 | | and a contractor may not prohibit or limit the award of compensatory |
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| 34 | 34 | | damages to the contractor for a delay caused solely by the |
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| 35 | 35 | | governmental entity. |
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| 36 | 36 | | (c) This section may not be waived. A purported waiver of |
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| 37 | 37 | | this section in violation of this subsection is void. |
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| 38 | 38 | | SECTION 2. Section 2252.909, Government Code, as added by |
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| 39 | 39 | | this Act, applies only to a construction contract entered into on or |
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| 40 | 40 | | after the effective date of this Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2023. |
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