Texas Construction Association

Monitor your legislation:  For instructions on using the Texas Legislature's Bill tracking system

 

Texas Legislature Online:  To monitor legislation and the activities of the Legislature, go to the official Texas Legislature website. On this website you can search for legislation, monitor the status of legislation and even establish your own tracking lists of legislation of interest to you.

 

The 82nd Texas Legislature, in addition to passing TCA's priority bills,  passed several other bills affecting the construction industry directly.  Below is a list of those bills, however more information can be found at Texas Legislature Online

 

Alternative Delivery Methods

HB 628 by Representative Bill Callegari and Senator Mike Jackson

This bill changes current law relating to the procurement and alternative delivery methods in the Education Code, the Local Government Code and sections of the Government Code by consolidating them in the Government Code. HB 628 applies to public junior colleges, but not to institutions of higher education; it exempts TxDOT, regional toll-road authorities, regional mobility authorities, and local government corporations that are exempt from competitive bidding requirements under the Transportation Code. The bill prohibits reverse auctions in construction procurement and contains a provision to minimize frivolous lawsuits relating to defects in school construction. 
This law is effective September 1, 2011.

Public-Private Partnerships

SB 1048 by Senator Mike Jackson and Representative John Davis

This bill establishes a process for governmental entities to contract with private entities to construct, finance, and operate a variety of facilities, including ports, pipelines, parking garages, hospitals, schools, and other public works projects.  State highways are not included. Before considering a proposal, the governmental entity must adopt guidelines including criteria for selection, financial review, timeline, and other issues.  The bill was amended in the House with language provided by TCA that requires performance and payment bonds to be in place before the start of any projects contemplated under this law.

This law is effective on September 1, 2011.

Attorney's Fees on Lien and Bond Claims

SB 539 by Senator John Carona and Representative Tim Kleinschmidt

This bill amends Section 53.156 of the Texas Property Code to now require, rather than authorize, a court to award costs and reasonable attorney’s fees in any proceeding to foreclose a lien or to enforce a claim against a bond, or to declare that any lien or claim is invalid or unenforceable under the law governing mechanic’s, contractor’s or materialman’s liens.

This law is effective September 1, 2011 for actions commenced on or after that date.

Prompt Pay Interest

HB 345 by Representative Tim Kleinschmidt and Senator Jeff Wentworth

This bill clarifies that interest under the prompt pay statute is awardable in breach of contract lawsuits brought against local governmental entities.

This law is effective on September 1, 2011.

Background Checks for Public School Construction

HB 398 by Representative Bill Callegari and Senator Mike Jackson

H.B. 398 corrects a drafting error in legislation passed in 2009, so that employees of subcontractors and contractors will now be required to submit to the same background check as non-teacher employees, instead of the more extensive background check required for teachers, when working on school construction projects.

This law is effective on June 17, 2011.

Approval of Change Orders for Certain Governmental Entities

HB 679 by Representative Angie Chen Button and Senator John Carona
This legislation raises the change order threshold from $25,000 to $50,000 for cities and other local governmental entities (including water districts) and allows for the delegation of such change order approval to a designated employee.
This law is effective September 1, 2011.

Frivolous Lawsuits

HB 274 by Representative Brandon Creighton and Senator Joan Huffman 

What started out as a strict “loser pay” bill was changed to allow courts to dismiss frivolous lawsuits more quickly, allow questions of law to go directly to appellate courts, allow plaintiffs seeking less than $100,000 to request an expedited civil action, and encourage the timely settlement of disputes if there is a fair offer of settlement.

This law is effective on September 1, 2011.

Eminent Domain

SB 18 by Senator Craig Estes

Current law requires that when governmental entities exercise their eminent domain powers, adequate compensation be given to landowners. This bill will also require that those governmental entities make both a written initial and final offer and provide a written appraisal to the owner. 

This law is effective on September 1, 2011.

Certificates of Insurance

SB 425 by Senator John Carona

This legislation amends the Texas Insurance Code to state that a Certificate of Insurance is not a policy of insurance and does not alter, amend, or extend coverage provided under the referenced policy.   A property and casualty insurer or agent will not be allowed to issue a Certificate of Insurance that claims to give a person the right to notice of cancellation, nonrenewal, or material change with regard to the policy unless that person is named in the policy or in an endorsement to the policy and the policy or the endorsement requires this type of notice be given to that person. In addition, third parties are prohibited from requiring insurers or agents to issue any document or correspondence that is inconsistent with statutory conditions and limitations with regard to Certificates of Insurance, but third parties are not prohibited from requiring the insured to furnish copies of the actual policy of insurance and the endorsements. Violations of this statute are subject to a civil penalty of up to $1,000 per violation.

This law is effectivive on September 1, 2011, and is effective for Certificates of Insurance issued on or before January 1, 2012.