| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to disclosures regarding indemnification obligations and |
|
|
insurance coverage in connection with provision of services |
|
|
pertaining to wells or mines by certain subcontractors. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Title 6, Civil Practice and Remedies Code, is |
|
|
amended by adding Chapter 127A to read as follows: |
|
|
CHAPTER 127A. DISCLOSURES REGARDING INDEMNIFICATION OBLIGATIONS |
|
|
AND INSURANCE COVERAGE REGARDING WELL OR MINE SERVICES PROVIDED BY |
|
|
CERTAIN SUBCONTRACTORS |
|
|
Sec. 127A.001. DEFINITIONS. In this chapter: |
|
|
(1) "Temporary placement service" means an entity or |
|
|
other person that employs individuals or contracts with another |
|
|
entity or person to refer or assign personnel to the placement |
|
|
service's clients to support or supplement the clients' workforce |
|
|
in a special work situation, including: |
|
|
(A) an employee absence; |
|
|
(B) a temporary skill shortage; |
|
|
(C) a seasonal or cyclical workload; |
|
|
(D) work requiring uniquely skilled personnel; |
|
|
or |
|
|
(E) a special assignment or project. |
|
|
(2) "Temporary subcontractor" means an independent |
|
|
contractor who, in connection with performing well or mine |
|
|
services: |
|
|
(A) is referred to or placed by a temporary |
|
|
placement service with the placement service's client; or |
|
|
(B) has entered into an agreement with a |
|
|
temporary placement service to provide those services to the |
|
|
placement service's client. |
|
|
(3) "Well or mine service" has the meaning assigned by |
|
|
Section 127.001. |
|
|
Sec. 127A.002. DISCLOSURE REGARDING TEMPORARY |
|
|
SUBCONTRACTOR INDEMNIFICATION OBLIGATIONS AND INSURANCE COVERAGE |
|
|
REQUIREMENTS. (a) Before a temporary placement service refers or |
|
|
assigns a temporary subcontractor to the placement service's client |
|
|
to perform well or mine services, the placement service shall |
|
|
provide a written disclosure to the subcontractor that: |
|
|
(1) describes the subcontractor's indemnification |
|
|
obligations, if any, to the placement service and to the placement |
|
|
service's client in connection with the services the subcontractor |
|
|
will provide to the client; |
|
|
(2) describes any insurance policy, including the |
|
|
amount of coverage and any limits on coverage, that is provided for |
|
|
the benefit of the subcontractor by the placement service or the |
|
|
placement service's client, or both, in connection with the |
|
|
services the subcontractor will provide to the client; and |
|
|
(3) expressly states whether and to what extent any |
|
|
insurance policy described by Subdivision (2) will cover the |
|
|
subcontractor's tort liability and contractual indemnity |
|
|
obligations arising out of the performance of the services by the |
|
|
subcontractor for the placement service's client or clients. |
|
|
(b) The disclosure required under Subsection (a) may state |
|
|
that the disclosure does not alter, amend, or otherwise modify the |
|
|
terms of any agreement governing services provided by the temporary |
|
|
subcontractor or any insurance policy described by Subsection |
|
|
(a)(2), provided that the temporary placement service is |
|
|
responsible for the content of the disclosure. |
|
|
(c) A temporary placement service shall: |
|
|
(1) provide the disclosure required under Subsection |
|
|
(a) to a temporary subcontractor as a separate document from any |
|
|
agreement entered into with the subcontractor by the placement |
|
|
service or the placement service's client; and |
|
|
(2) ensure that the disclosure is written in plain |
|
|
English and in a manner that is clear, concise, and designed to |
|
|
enable the temporary subcontractor to understand the |
|
|
subcontractor's contractual indemnity obligations, if any, and any |
|
|
insurance policy provided for the benefit of the subcontractor in |
|
|
connection with well or mine services to be performed by the |
|
|
subcontractor. |
|
|
(d) A temporary placement service may satisfy the |
|
|
requirement to describe an insurance policy under Subsection (a)(2) |
|
|
by providing to the temporary subcontractor a certificate of |
|
|
insurance evidencing applicable coverage and limits. |
|
|
Sec. 127A.003. DISCLOSURE REQUIREMENTS FOR ONGOING |
|
|
INSURANCE POLICY. A temporary placement service that provides a |
|
|
disclosure to a temporary subcontractor under Section 127A.002 that |
|
|
states that an insurance policy described in that disclosure that |
|
|
is provided for the benefit of the temporary subcontractor remains |
|
|
in effect for a specified time period and with respect to a |
|
|
specified client or clients is not required to provide that |
|
|
subcontractor with an additional disclosure under Section 127A.002 |
|
|
for future services provided by the subcontractor to that client or |
|
|
those clients until: |
|
|
(1) the insurance policy is no longer in effect; or |
|
|
(2) the placement service is required to provide the |
|
|
subcontractor a new disclosure because of a change concerning the |
|
|
insurance policy as provided under Section 127A.004. |
|
|
Sec. 127A.004. NOTICE REQUIRED FOR CERTAIN CHANGES RELATED |
|
|
TO INSURANCE POLICY. A temporary placement service shall provide a |
|
|
temporary subcontractor who is provided a disclosure of a provided |
|
|
insurance policy under Section 127A.002 a separate written notice |
|
|
of a cancellation or nonrenewal of the policy or a material |
|
|
reduction in coverage under the insurance policy not later than the |
|
|
30th day before the date the cancellation or nonrenewal of the |
|
|
policy or the material reduction in insurance coverage takes |
|
|
effect. |
|
|
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. |
|
|
|
|
|
* * * * * |