2023 legislative Issues
88th TEXAS LEGISLATIVE SESSION
ASA-HC is proud to partner with the Texas Construction Association (TCA) to move legislative reform forward. By working together, we pass construction legislation that directly affects subcontractors and the construction industry, and we always keep our members informed of the latest legislation and news. Below are the issues we tackled on behalf of ASA members in Houston and throughout Texas.
Securing Reserved Funds/Retainage
HB 1963 by Rep. Jeff Leach Increase security for reserved funds by amending the Construction Trust Fund Act to statutorily classify reserved funds as trust funds.
Documents Incorporated by Reference into Construction Contract
HB 2657 by Rep. Jeff Leach/SB 2207 by Sen. Tan Parker Amend the Business & Commerce Code to require the disclosure of documents incorporated by reference in a construction contract. The foundations of contract law require a “meeting of the minds” for a contract to be valid. To achieve this, all parties must know what is in the contract, including those items incorporated by reference.
Excessive Outstanding Change Orders
HB 3485 by Rep. Keith Bell Amend Texas’ Prompt Pay Acts (public and private) to allow contractors the right to stop work if unsigned owner-directed change orders exceed 10% of the original contract price.
Eliminate Cross-Default/Offset Clauses
HB 2928 by Rep. Chris Turner Amend the private Prompt Pay Act and the Construction Trust Fund Act to clarify that each construction contract stands on its own. Contract clauses that allow the withholding of funds due to a dispute on a separate contract are contrary to Texas law and public policy.
Public Land/Private Project Bond Requirements
HB 2518 by Rep. Keith Bell Require any lease of public land to a nongovernmental entity to include a requirement for performance and payment bonds, notice of construction to the public entity, and copies of bonds to the public entity.
Lien Law Clean Up
HB 4301 by Rep. Mike Schofield/SB 2113 by Sen. Nathan Johnson Amend Property Code, Section 53.003(e) to apply to all deadlines, those that are statutorily defined and those that are calculated by counting days.
Texas Regulatory Consistency Act
HB 2127 by Rep. Dustin Burrows/SB 814 by Sen. Brandon Creighton As a member of the Alliance for Securing and Strengthening the Economy of Texas (ASSET) TCA supports legislation to ensure the regulatory climate in Texas is consistent and uniform, particularly as it relates to employment regulations.