HBA-MSH, MSH H.B. 2129 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2129 By: Hope Civil Practices 3/27/2001 Introduced BACKGROUND AND PURPOSE Liability claims made to recover damages for a residential housing construction defect are governed by the Residential Construction Liability Act. The act provides protection to both a contractor and home purchaser in the case of construction defects. House Bill 2129 clarifies certain provisions relating to the settlement of construction liability claims in an effort to give contractors an opportunity to correct defects in homes before being taken to court by the home owner. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2129 amends the Property Code to set forth that provisions relating to residential construction liability are applicable to any action for any form of relief arising from a construction defect except for personal injury, survival, or wrongful death or for damage to goods. The bill provides that if a contractor fails to make a reasonable offer of settlement, fails to make a reasonable attempt to complete repairs specified in an accepted offer, or fails to complete in a good manner the specified repairs the limitations on damages that apply if a claimant unreasonably rejects an offer do not apply and the claimant may recover damages for the reasonable cost of repairs, expense of temporary housing, reduction in market value, and attorney's fees. EFFECTIVE DATE September 1, 2001.