Bill: SB 1215, 85(R) - 2017

Bill Caption

Relating to responsibility for the consequences of defects in the plans, specifications, or other documents for the construction or repair of an improvement to real property.

Fiscal Notes

From the Legislative Budget Board: no fiscal implication to the state is anticipated.

Bill Analysis

SB 1215 would amend the Business & Commerce Code to add that a contractor is not responsible for the defects in and can not warranty the accuracy of plans provided to the contractor by the person with whom the contractor has entered the contract. An amendment was adopted on the Senate Floor that would require a contractor to disclose to the owner a condition discovered during construction that was not known or could not have reasonably been known at the time of design. If the contractor fails to disclose, the contractor may be held liable for defects from failing to disclose.

Vote Recommendation Notes

This bill would make two positive changes that would place the responsibility of defects on the appropriate party and protect those who establish a contractual obligation to build a product,

The bill also has provisions that would negatively affect our principles. It is not the appropriate role of government to prohibit an individual from warrantying work or product, even if it is not theirs. Secondly, prohibiting someone from waiving their rights is also not the appropriate function of government. Though it would make little sense to do so, contractors should be left free to decide whether or not they have good cause to waive the immunity granted by this bill.

However, because provisions of this bill uplift our principles while other provisions violate them, we will remain neutral on SB 1215.

Source URL (retrieved on 04/25/2024 11:04 PM): http://reports.texasaction.com/bill/85r/sb1215?print_view=true