S.B. No. 1768
 
 
 
AN ACT
relating to the correction or removal of certain obsolete
provisions of the Property Code.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Sections 27.001(4), (5), and (8), Property Code,
are amended to read as follows:
             (4)  "Construction defect" [has the meaning assigned by
Section 401.004 for an action to which Subtitle D, Title 16, applies
and for any other action] means a matter concerning the design,
construction, or repair of a new residence, of an alteration of or
repair or addition to an existing residence, or of an appurtenance
to a residence, on which a person has a complaint against a
contractor. The term may include any physical damage to the
residence, any appurtenance, or the real property on which the
residence and appurtenance are affixed proximately caused by a
construction defect.
             (5)  "Contractor":
                   (A)  means:
                         (i)  a builder[, as defined by Section
401.003,] contracting with an owner for the construction or repair
of a new residence, for the repair or alteration of or an addition
to an existing residence, or for the construction, sale,
alteration, addition, or repair of an appurtenance to a new or
existing residence;
                         (ii)  any person contracting with a
purchaser for the sale of a new residence constructed by or on
behalf of that person; or
                         (iii)  a person contracting with an owner or
the developer of a condominium for the construction of a new
residence, for an alteration of or an addition to an existing
residence, for repair of a new or existing residence, or for the
construction, sale, alteration, addition, or repair of an
appurtenance to a new or existing residence; and
                   (B)  includes:
                         (i)  an owner, officer, director,
shareholder, partner, or employee of the contractor; and
                         (ii)  a risk retention group registered
under Chapter 2201 [Article 21.54], Insurance Code, that insures
all or any part of a contractor's liability for the cost to repair a
residential construction defect.
             (8)  "Structural failure" [has the meaning assigned by
Section 401.002 for an action to which Subtitle D, Title 16, applies
and for any other action] means actual physical damage to the
load-bearing portion of a residence caused by a failure of the
load-bearing portion.
       SECTION 2.  Section 27.002(b), Property Code, is amended to
read as follows:
       (b)  To [Except as provided by this subsection, to] the
extent of conflict between this chapter and any other law,
including the Deceptive Trade Practices-Consumer Protection Act
(Subchapter E, Chapter 17, Business & Commerce Code) or a common law
cause of action, this chapter prevails. [To the extent of conflict
between this chapter and Title 16, Title 16 prevails.]
       SECTION 3.  Section 27.003(a), Property Code, is amended to
read as follows:
       (a)  In an action to recover damages or other relief arising
from a construction defect:
             (1)  a contractor is not liable for any percentage of
damages caused by:
                   (A)  negligence of a person other than the
contractor or an agent, employee, or subcontractor of the
contractor;
                   (B)  failure of a person other than the contractor
or an agent, employee, or subcontractor of the contractor to:
                         (i)  take reasonable action to mitigate the
damages; or
                         (ii)  take reasonable action to maintain the
residence;
                   (C)  normal wear, tear, or deterioration;
                   (D)  normal shrinkage due to drying or settlement
of construction components within the tolerance of building
standards; or
                   (E)  the contractor's reliance on written

Statutes affected:
Introduced: Property Code 27.001, Property Code 27.002, Property Code 27.003, Property Code 27.004, Property Code 27.0042, Property Code 53.172, Property Code 74.3013, Property Code 112.058, Property Code 202.002, Property Code 202.003, Property Code 204.004, Property Code 204.010 (Property Code 53, Property Code 204, Property Code 112, Property Code 74, Property Code 27, Property Code 202)
Senate Committee Report: Property Code 27.001, Property Code 27.002, Property Code 27.003, Property Code 27.004, Property Code 27.0042, Property Code 53.172, Property Code 74.3013, Property Code 112.058, Property Code 202.002, Property Code 202.003, Property Code 204.004, Property Code 204.010 (Property Code 53, Property Code 204, Property Code 112, Property Code 74, Property Code 27, Property Code 202)
Engrossed: Property Code 27.001, Property Code 27.002, Property Code 27.003, Property Code 27.004, Property Code 27.0042, Property Code 53.172, Property Code 74.3013, Property Code 112.058, Property Code 202.002, Property Code 202.003, Property Code 204.004, Property Code 204.010 (Property Code 53, Property Code 204, Property Code 112, Property Code 74, Property Code 27, Property Code 202)
House Committee Report: Property Code 27.001, Property Code 27.002, Property Code 27.003, Property Code 27.004, Property Code 27.0042, Property Code 53.172, Property Code 74.3013, Property Code 112.058, Property Code 202.002, Property Code 202.003, Property Code 204.004, Property Code 204.010 (Property Code 53, Property Code 204, Property Code 112, Property Code 74, Property Code 27, Property Code 202)
Enrolled: Property Code 27.001, Property Code 27.002, Property Code 27.003, Property Code 27.004, Property Code 27.0042, Property Code 53.172, Property Code 74.3013, Property Code 112.058, Property Code 202.002, Property Code 202.003, Property Code 204.004, Property Code 204.010 (Property Code 53, Property Code 204, Property Code 112, Property Code