Texas 2025 - 89th Regular

Texas House Bill HB2021 Compare Versions

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1	1	By: Barry H.B. No. 2021
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to certain construction liability claims.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2272.001, Government Code, is amended to
11	11	read as follows:
12	12	Sec. 2272.001. DEFINITIONS.
13	13	(9) "Critical Infrastructure Facility" means
14	14	(a) The same as defined by Chapter 59 of the Business and
15	15	Commerce Code.
16	16	(b) For the purposes of this chapter, the definition of
17	17	"critical infrastructure facility" excludes the following:
18	18	(1) a natural gas compressor station;
19	19	(2) a liquid natural gas terminal or storage facility;
20	20	(3) a telecommunications central switching office or
21	21	any structure used as part of a system to provide wired or wireless
22	22	telecommunications services;
23	23	(4) a port, railroad switching yard, trucking
24	24	terminal, or other freight transportation facility;
25	25	(5) a transmission facility used by a federally
26	26	licensed radio or television station;
27	27	(6) a steelmaking facility that uses an electric arc
28	28	furnace to make steel;
29	29	(7) a dam that is classified as a high hazard by the
30	30	Texas Commission on Environmental Quality;
31	31	(8) any portion of an aboveground oil, gas, or
32	32	chemical pipeline;
33	33	(9) an oil or gas drilling site;
34	34	(10) a group of tanks used to store crude oil, such as
35	35	a tank battery;
36	36	(11) an oil or gas wellhead;
37	37	(12) any oil and gas facility that has an active flare;
38	38	and
39	39	(13) pipelines and pipeline appurtenances or
40	40	facilities, including pipes, valves, meters, pumps, compressors,
41	41	treating and processing facilities, cathodic protection
42	42	facilities, and any other equipment, facilities, devices,
43	43	structures, and buildings used or intended for use in the
44	44	gathering, transportation, treating, storage, or processing of
45	45	CO2, oil, gas, or other minerals, and the liquefied or gaseous
46	46	substances, constituents, products, or mixtures derived from those
47	47	minerals through refining, processing, or other methods.
48	48	SECTION 2. Chapter 2272, Government Code, is amended by
49	49	adding the following section:
50	50	Sec. 2272.002. APPLICABILITY OF CHAPTER
51	51	(a) for:
52	52	(1) damages arising from damage to or loss of real or
53	53	personal property caused by an alleged construction defect in an
54	54	improvement to real property that is a public building or public
55	55	work; or
56	56	(2) indemnity or contribution for damages described by
57	57	Paragraph (A);
58	58	(3) asserted by a governmental entity with an interest
59	59	in the public building or public work affected by the alleged
60	60	construction defect; and
61	61	(4) asserted against a contractor, subcontractor,
62	62	supplier, or design professional.
63	63	(b) (1) damages arising from damage to or loss of real or
64	64	personal property caused by an alleged construction defect in an
65	65	improvement to real property that is a private construction
66	66	contract exceeding $10 million
67	67	(2) indemnity or contribution for damages described by
68	68	Paragraph (B);
69	69	(3) asserted by a private owner with an interest in the
70	70	construction contract affected by the alleged construction defect;
71	71	and
72	72	(4) asserted against a contractor, subcontractor,
73	73	supplier, or design professional.
74	74	(c) This chapter does not apply to:
75	75	(1) a claim for personal injury, survival, or wrongful
76	76	death;
77	77	(2) a claim involving the construction of residential
78	78	property covered under Chapter 27, Property Code;
79	79	(3) a contract entered into by the Texas Department of
80	80	Transportation;
81	81	(4) a project that receives money from a state or
82	82	federal highway fund; or
83	83	(5) a civil works project as defined by Section
84	84	2269.351.
85	85	(5) a "critical infrastructure facility" as defined by
86	86	Sec. 2272.001 (9).
87	87	SECTION 3. Chapter 2272, Government Code, is amended by
88	88	adding the following section:
89	89	Sec. 2272.003. REPORT.
90	90	(a) Before bringing an action asserting a claim to which
91	91	this chapter applies, the governmental entity or private owner must
92	92	provide each party with whom the governmental entity or private
93	93	owner has a contract for the design or construction of an affected
94	94	structure a written report by certified mail, return receipt
95	95	requested, that clearly:
96	96	(1) identifies the specific construction defect on
97	97	which the claim is based;
98	98	(2) describes the present physical condition of the
99	99	affected structure; and
100	100	(3) describes any modification, maintenance, or
101	101	repairs to the affected structure made by the governmental entity
102	102	or private owner or others since the affected structure was
103	103	initially occupied or used.
104	104	(b) Not later than the fifth day after the date a contractor
105	105	receives a report under Subsection (a), the contractor must provide
106	106	a copy of the report to each subcontractor retained on the
107	107	construction of the affected structure whose work is subject to the
108	108	claim.
109	109	SECTION 4. Chapter 2272, Government Code, is amended by
110	110	adding the following section:
111	111	Sec. 2272.004. OPPORTUNITY TO INSPECT AND CORRECT.
112	112	(a) Before bringing an action asserting a claim to which
113	113	this chapter applies, the governmental entity or a party to a
114	114	private construction contract exceeding $10 million must allow each
115	115	party with whom the governmental entity or private owner has a
116	116	contract for the design or construction of an affected structure
117	117	and who is subject to the claim and any known subcontractor or
118	118	supplier who is subject to the claim:
119	119	(1) a reasonable opportunity to inspect any
120	120	construction defect or related condition identified in the report
121	121	for a period of 30 days after sending the report required by Section
122	122	2272.003; and
123	123	(2) at least 120 days after the inspection to:
124	124	(A) correct any construction defect or related
125	125	condition identified in the report; or
126	126	(B) enter into a separate agreement with the
127	127	governmental entity or private owner to correct any construction
128	128	defect or related condition identified in the report.
129	129	(b) The governmental entity or private owner is not required
130	130	to allow a party to make a correction or repair under Subsection (a)
131	131	if:
132	132	(1) the party:
133	133	(A) is a contractor and cannot provide payment
134	134	and performance bonds to cover the corrective work if applicable;
135	135	(B) cannot provide liability insurance or
136	136	workers' compensation insurance;
137	137	(C) has been previously terminated for cause by
138	138	the governmental entity or private owner; or
139	139	(D) has been convicted of a felony; or
140	140	(2) the governmental entity or private owner
141	141	previously complied with the process required by Subsection (a)
142	142	regarding a construction defect or related condition identified in
143	143	the report and:
144	144	(A) the defect or condition was not corrected as
145	145	required by Subsection (a)(2)(A) or an agreement under Subsection
146	146	(a)(2)(B); or
147	147	(B) the attempt to correct the construction
148	148	defect or related condition identified in the report resulted in a
149	149	new construction defect or related condition.
150	150	SECTION 5. Chapter 2272, Government Code, is amended by
151	151	adding the following section:
152	152	Sec. 2272.006. DISMISSAL.
153	153	(a) If a governmental entity or private owner brings an
154	154	action asserting a claim to which this chapter applies without
155	155	complying with Sections 2272.003 and 2272.004, the court,
156	156	arbitrator, or other adjudicating authority shall dismiss the
157	157	action without prejudice.
158	158	(b) If an action is dismissed without prejudice under
159	159	Subsection (a) and the governmental entity or private owner brings
160	160	a second action asserting a claim to which this chapter applies
161	161	without complying with Sections 2272.003 and 2272.004, the court,
162	162	arbitrator, or other adjudicating authority shall dismiss the
163	163	action with prejudice.
164	164	SECTION 6. Chapter 2272, Government Code, is amended by
165	165	adding the following section:
166	166	Sec. 2272.007. RECOVERY OF REPORT COSTS.
167	167	If a report provided by a governmental entity or private
168	168	owner under Section 2272.003 identifies a construction defect that
169	169	is corrected under Section 2272.004 or for which the governmental
170	170	entity or private owner recovers damages, the party responsible for
171	171	that construction defect shall pay the reasonable amounts incurred
172	172	by the governmental entity or private owner to obtain the report
173	173	with respect to identification of that construction defect.
174	174	SECTION 7. Effective Date:
175	175	This act takes effect on September 1, 2025.