HB2021 - Relating to certain construction liability claims.

      By: Barry H.B. No. 2021       A BILL TO BE ENTITLED   AN ACT   relating to certain construction liability claims.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2272.001, Government Code, is amended to   read as follows:          Sec. 2272.001.  DEFINITIONS.          (9)   "Critical Infrastructure Facility" means           (a)     The same as defined by Chapter 59 of the Business and   Commerce Code.           (b)     For the purposes of this chapter, the definition of   "critical infrastructure facility" excludes the following:                 (1)  a natural gas compressor station;                 (2)  a liquid natural gas terminal or storage facility;                 (3)     a telecommunications central switching office or   any structure used as part of a system to provide wired or wireless   telecommunications services;                 (4)     a port, railroad switching yard, trucking   terminal, or other freight transportation facility;                 (5)     a transmission facility used by a federally   licensed radio or television station;                 (6)     a steelmaking facility that uses an electric arc   furnace to make steel;                 (7)     a dam that is classified as a high hazard by the   Texas Commission on Environmental Quality;                 (8)     any portion of an aboveground oil, gas, or   chemical pipeline;                 (9)  an oil or gas drilling site;                 (10)     a group of tanks used to store crude oil, such as   a tank battery;                 (11)  an oil or gas wellhead;                 (12)     any oil and gas facility that has an active flare;   and                 (13)     pipelines and pipeline appurtenances or   facilities, including pipes, valves, meters, pumps, compressors,   treating and processing facilities, cathodic protection   facilities, and any other equipment, facilities, devices,   structures, and buildings used or intended for use in the   gathering, transportation, treating, storage, or processing of   CO2, oil, gas, or other minerals, and the liquefied or gaseous   substances, constituents, products, or mixtures derived from those   minerals through refining, processing, or other methods.          SECTION 2.  Chapter 2272, Government Code, is amended by   adding the following section:          Sec. 2272.002.  APPLICABILITY OF CHAPTER          (a)  for:                (1)  damages arising from damage to or loss of real or   personal property caused by an alleged construction defect in an   improvement to real property that is a public building or public   work; or                (2)  indemnity or contribution for damages described by   Paragraph (A);                (3)  asserted by a governmental entity with an interest   in the public building or public work affected by the alleged   construction defect; and                (4)  asserted against a contractor, subcontractor,   supplier, or design professional.           (b)   (1)     damages arising from damage to or loss of real or   personal property caused by an alleged construction defect in an   improvement to real property that is a private construction   contract exceeding $10 million                 (2)     indemnity or contribution for damages described by   Paragraph (B);                 (3)     asserted by a private owner with an interest in the   construction contract affected by the alleged construction defect;   and                 (4)     asserted against a contractor, subcontractor,   supplier, or design professional.           (c)   This chapter does not apply to:                (1)  a claim for personal injury, survival, or wrongful   death;                (2)  a claim involving the construction of residential   property covered under Chapter 27, Property Code;                (3)  a contract entered into by the Texas Department of   Transportation;                (4)  a project that receives money from a state or   federal highway fund; or                (5)   a civil works project as defined by Section   2269.351.                 (5)     a "critical infrastructure facility" as defined by   Sec. 2272.001 (9).          SECTION 3.  Chapter 2272, Government Code, is amended by   adding the following section:          Sec. 2272.003.  REPORT.          (a)  Before bringing an action asserting a claim to which   this chapter applies, the governmental entity or private owner must   provide each party with whom the governmental entity or private   owner has a contract for the design or construction of an affected   structure a written report by certified mail, return receipt   requested, that clearly:                (1)  identifies the specific construction defect on   which the claim is based;                (2)  describes the present physical condition of the   affected structure; and                (3)  describes any modification, maintenance, or   repairs to the affected structure made by the governmental entity   or private owner or others since the affected structure was   initially occupied or used.          (b)  Not later than the fifth day after the date a contractor   receives a report under Subsection (a), the contractor must provide   a copy of the report to each subcontractor retained on the   construction of the affected structure whose work is subject to the   claim.          SECTION 4.  Chapter 2272, Government Code, is amended by   adding the following section:          Sec. 2272.004.  OPPORTUNITY TO INSPECT AND CORRECT.          (a)  Before bringing an action asserting a claim to which   this chapter applies, the governmental entity or a party to a   private construction contract exceeding $10 million must allow each   party with whom the governmental entity or private owner has a   contract for the design or construction of an affected structure   and who is subject to the claim and any known subcontractor or   supplier who is subject to the claim:                (1)  a reasonable opportunity to inspect any   construction defect or related condition identified in the report   for a period of 30 days after sending the report required by Section   2272.003; and                (2)  at least 120 days after the inspection to:                      (A)  correct any construction defect or related   condition identified in the report; or                      (B)  enter into a separate agreement with the   governmental entity or private owner to correct any construction   defect or related condition identified in the report.          (b)  The governmental entity or private owner is not required   to allow a party to make a correction or repair under Subsection (a)   if:                (1)  the party:                      (A)  is a contractor and cannot provide payment   and performance bonds to cover the corrective work if applicable ;                      (B)  cannot provide liability insurance or   workers' compensation insurance;                      (C)  has been previously terminated for cause by   the governmental entity or private owner ; or                      (D)  has been convicted of a felony; or                (2)  the governmental entity or private owner   previously complied with the process required by Subsection (a)   regarding a construction defect or related condition identified in   the report and:                      (A)  the defect or condition was not corrected as   required by Subsection (a)(2)(A) or an agreement under Subsection   (a)(2)(B); or                      (B)  the attempt to correct the construction   defect or related condition identified in the report resulted in a   new construction defect or related condition.          SECTION 5.  Chapter 2272, Government Code, is amended by   adding the following section:          Sec. 2272.006.  DISMISSAL.          (a)  If a governmental entity or private owner brings an   action asserting a claim to which this chapter applies without   complying with Sections 2272.003 and 2272.004, the court,   arbitrator, or other adjudicating authority shall dismiss the   action without prejudice.          (b)  If an action is dismissed without prejudice under   Subsection (a) and the governmental entity or private owner brings   a second action asserting a claim to which this chapter applies   without complying with Sections 2272.003 and 2272.004, the court,   arbitrator, or other adjudicating authority shall dismiss the   action with prejudice.          SECTION 6.  Chapter 2272, Government Code, is amended by   adding the following section:          Sec. 2272.007.  RECOVERY OF REPORT COSTS.          If a report provided by a governmental entity or private   owner under Section 2272.003 identifies a construction defect that   is corrected under Section 2272.004 or for which the governmental   entity or private owner recovers damages, the party responsible for   that construction defect shall pay the reasonable amounts incurred   by the governmental entity or private owner to obtain the report   with respect to identification of that construction defect.          SECTION 7.  Effective Date:          This act takes effect on September 1, 2025.