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A BILL TO BE ENTITLED
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AN ACT
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relating to indemnification and duties of real property appraisers |
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under certain governmental contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 271, Local Government |
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Code, is amended by adding Section 271.9041 to read as follows: |
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Sec. 271.9041. APPRAISAL SERVICE CONTRACTS; |
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INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this |
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section, "governmental agency" has the meaning assigned by Section |
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271.003. |
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(b) This section applies only to a contract for appraisal |
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services for real property entered into by a licensed appraiser and |
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a governmental agency. |
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(c) A provision of a contract for appraisal services, or a |
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promise in connection with the contract, is void and unenforceable |
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if the provision requires a licensed appraiser to indemnify or hold |
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harmless a governmental agency against liability for damage, other |
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than damage to the extent the damage is caused by or results from an |
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act of: |
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(1) negligence; |
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(2) intentional tort; |
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(3) intellectual property infringement; or |
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(4) failure to pay: |
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(A) a subcontractor or supplier committed by the |
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appraiser or the appraiser's agent; |
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(B) a consultant under contract; or |
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(C) another person over which the appraiser |
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exercises control. |
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(d) Except as provided by Subsection (e)(2), a provision of |
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a contract for appraisal services, or a promise in connection with |
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the contract, is void and unenforceable if the provision requires a |
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licensed appraiser to defend a person against a claim based wholly |
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or partly on the negligence or fault of, or breach of contract by: |
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(1) the governmental agency that is a party to the |
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contract; |
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(2) an employee or agent of the governmental agency; |
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or |
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(3) another person over which the governmental agency |
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exercises control, other than the appraiser or an employee, agent, |
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or consultant of the appraiser. |
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(e) A contract for appraisal services may require: |
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(1) the reimbursement of a governmental agency's |
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reasonable attorney's fees in proportion to an appraiser's |
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liability; and |
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(2) an appraiser to name a governmental agency as an |
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additional insured under the appraiser's general liability |
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insurance policy and provide any defense provided by the policy. |
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(f) A contract for appraisal services must require a |
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licensed appraiser to perform services: |
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(1) with the professional skill and care ordinarily |
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provided by competent appraisers under the same or similar |
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circumstances and professional license; and |
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(2) as expeditiously as is prudent considering the |
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ordinary professional skill and care of a competent appraiser. |
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(g) A provision of a contract for appraisal services |
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establishing a different standard of care than a standard described |
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by Subsection (f) is void and unenforceable. If a contract contains |
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a void and unenforceable provision described by this subsection, |
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the standard of care described by Subsection (f) applies. |
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(h) This section does not prohibit a governmental agency |
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from including in and enforcing a provision in a contract for |
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appraisal services that relates to the scope, fees, and schedule of |
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a project in the contract. |
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SECTION 2. Section 271.9041, Local Government Code, as |
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added by this Act, applies only to a contract for appraisal services |
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for which a request for proposals or a request for qualifications is |
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first published or distributed on or after the effective date of |
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this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |
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