Capitol Roundup

March 29, 2021

Quote of the Week

"To try to perpetuate your power through limiting access to the polling place is not only morally bankrupt, I think it’s a losing proposition over time."

-Former Texas House Speaker Joe Straus

Straus made the comment in an interview with the Texas Tribune, dismissing claims of widespread fraud in the 2020 election as "nonsense."

Inside this edition of Capitol Roundup:

Legislation backed by AGC-TBB that would limit contractor liability for design defects passed committees in both the House and Senate last week, clearing a major hurdle before receiving a full vote. The House bill is sponsored by Rep. Jeff Leach, and the Senate bill is sponsored by Sen. Bryan Hughes.

Visit online: AGC Texas Building Branch

Design-defect bills pass out of committee, becoming just one of three pieces of legislation to clear committee hurdle

Key legislation that would limit contractor liability for design defects cleared a major hurdle last week when two bills backed by AGC Texas Building Branch were passed out of House and Senate Committees.

The legislation – contained in House Bill 1418 and Senate Bill 219 – is just one of three pieces of proposed law that has been heard and passed by committees in both chambers of the Legislature. Nearly 7,000 bills have been filed this session.

The Senate bill was amended in the State Affairs Committee, where it passed on a 6-1 vote (with two lawmakers absent) last Wednesday. The chairman of that committee, Sen. Bryan Hughes (R-Mineola), is the sponsor of SB 219 and has been essential to its progress.

The companion House version – HB 1418 – was also amended and approved in committee last week. The bill received a 7-2 vote of passage by the House Judiciary & Civil Jurisprudence Committee, where Rep. Jeff Leach (R-Plano), who also chairs the committee, spearheaded the effort as the bill’s sponsor.

The advancement of the two bills is a major win at this stage of the legislative session, as the bill sponsors now seek votes by the full House and Senate. Legislation must be approved by both the House and Senate, in identical form, before advancing to the governor for signature and final passage.

While both versions of the bill seek to limit contractor liability related to design defects, the amended Senate version carves out some exceptions for design-build contracts and uses slightly different language concerning the contractor’s duty to disclose design defects.

Additionally, both the House and Senate versions make clear that the legislation does not apply to contracts for the construction or repair of a “critical infrastructure facility.” The Senate version further specifies that the bill would not apply to structures or improvements that are “necessary to the operation of and directly related to the critical infrastructure facility.”

Further, the amended Senate bill states that its proposed changes to the design-defect code would not apply when both 1) the construction, repair, alteration, or remodeling is performed under a design-build contract, and 2) the part of the plans or design for which the contractor is responsible under the contract is the part alleged to be defective.

Both bills are set to take effect on September 1, 2021, if passed by both chambers of the Legislature and signed into law by the governor.

Click here to read the text of HB 1418.

Click here to read the text of HB 219, as substituted and amended by committee.

Click here to read the Senate Research Center’s bill analysis.