| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to indemnity agreements between contractors and |
|
|
subcontractors for services pertaining to certain wells or mines. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 127, Civil Practice and Remedies Code, |
|
|
is amended by adding Section 127.0045 to read as follows: |
|
|
Sec. 127.0045. TRIPARTY RELATIONSHIP AGREEMENT. (a) In |
|
|
this section, "triparty relationship agreement" means any |
|
|
agreement pertaining to a well for oil, gas, or water or to a mine |
|
|
for a mineral that provides: |
|
|
(1) that a subcontractor may or will provide any part |
|
|
of a contractor's services required under a separate agreement with |
|
|
a third party; and |
|
|
(2) for a mutual or unilateral indemnity obligation |
|
|
between the contractor and third party. |
|
|
(b) Before entering into or renewing a triparty |
|
|
relationship agreement with a subcontractor or third party, a |
|
|
contractor shall provide written notice to: |
|
|
(1) the subcontractor that: |
|
|
(A) describes the subcontractor's |
|
|
indemnification obligations to the contractor and to the third |
|
|
party with respect to the services the subcontractor will provide |
|
|
under any related agreement between the contractor and |
|
|
subcontractor; |
|
|
(B) is provided as a separate document from the |
|
|
agreements with the subcontractor and third party; and |
|
|
(C) is written in plain English and in a manner |
|
|
that is clear, concise, and designed to enable the subcontractor to |
|
|
understand the subcontractor's contractual indemnity obligations |
|
|
in connection with any services performed by the subcontractor |
|
|
pursuant to the triparty relationship agreement; and |
|
|
(2) the third party that states: |
|
|
(A) whether the subcontractor possesses |
|
|
liability insurance coverage or qualified self-insurance in |
|
|
accordance with Section 127.005 for the subcontractor's indemnity |
|
|
obligations in connection with any services performed by the |
|
|
subcontractor pursuant to the triparty relationship agreement; and |
|
|
(B) the dollar limits of the subcontractor's |
|
|
insurance policy or qualified self-insurance, if any. |
|
|
(c) A contractor may satisfy the requirement to provide a |
|
|
third party written notice under Subsection (b)(2) by providing the |
|
|
third party a certificate of insurance. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to an agreement entered into on or after the effective date of this |
|
|
Act. |
|
|
SECTION 3. This Act takes effect September 1, 2021. |