March 30, 2007

AGC Texas Building Branch
Update on Priorities

Following is a quick update on the key AGC Legislative Priorities for the 2007 Legislative Session.

SB 324 by Senator Deuell – House Sponsor is Representative Warren Chisum

This is the contingent payment bill.  This bill has passed the Senate and it had its hearing in the House Business & Industry Committee this past Monday.  We expect this bill to be voted out of the House Committee after the Easter recess.

HB 447 by Representative Callegari  - Senate version is SB 356 by Senator Jackson

This is the public construction alternative delivery bill.  This bill was passed out of the House Government Reform Committee this past Monday.  We expect the bill to go to the full House of Representatives for consideration after the Easter recess.  We are pleased that the few points of contention on this issue appear to have been resolved with regard to the use of interlocal agreements and the scope of job order contracts for construction.

HB 3147 by Representative Burt Solomons

This is the technical corrections bill on the common elements of condominiums under the Residential Construction Liability Act (Chapter 27 of the Property Code).  This bill is expected to have its hearing in the House Business & Industry Committee after the Easter recess.  Under current law, the actual residential units of condos are covered by Chapter 27.  However, the statute is silent on the common elements.  This bill will correct this oversight by bringing the common condominium elements into Chapter 27.

SB 346 by Senator Duncan – House version is HB 1152 by Representative Eiland

These bills would ban the use of indemnification and additional insured clauses in construction contracts.  AGC Texas Building Branch is opposed to this legislation as it currently exists.  We believe that there are a number of good elements in the bills, but they fall short of a solution that resolves this issue for the construction industry. As they currently exist, the bills could have a number of unintended consequences that are not good for the industry.  AGC continues to try to work with TCA to find some common ground on this issue.  SB 346 is the bill as it was passed by the Senate State Affairs Committee almost two weeks ago and it is expected to eventually pass the Senate.  When it moves to the House, it will go to the House Civil Practices Committee where HB 1152 was heard on March 7^th and is still being held as pending business.

On the issue of alleged construction defects lawsuits by a number of school districts, AGC Texas Building Branch is continuing to work with legislative leaders to find a solution that allows for the filing of valid claims while discouraging the filing of frivolous lawsuits.

For all of the bills TBB AGC is following go to bills tracking.
 

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