By:  Jackson                                           H.B. No. 896
       73R3871 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a restriction of the use of certain indemnity
    1-3  provisions in construction contracts.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  DEFINITIONS.  In this Act:
    1-6              (1)  "Construction contract" means a written or oral
    1-7  agreement relating to the construction, alteration, demolition, or
    1-8  maintenance of a building, other structure, or fixture.
    1-9              (2)  "Design defect" means a condition inherent in the
   1-10  design of a building, other structure, or fixture that renders the
   1-11  structure or fixture unfit for its intended use.  The term includes
   1-12  a condition that renders the structure or fixture dangerous for its
   1-13  intended use.
   1-14        SECTION 2.  RESTRICTION ON HOLD HARMLESS CLAUSES.  (a)  A
   1-15  provision, covenant, or other agreement relating to a construction
   1-16  contract that purports to indemnify a person against liability that
   1-17  arises from the negligence or wilful misconduct of the person, or
   1-18  of an agent or employee of the person, is void as against public
   1-19  policy.
   1-20        (b)  This section applies to liability based on:
   1-21              (1)  death or bodily injury incurred by individuals;
   1-22              (2)  injury to property;
   1-23              (3)  design defects; or
   1-24              (4)  any other loss, damage, or expense that is based
    2-1  on such a death, injury, or defect.
    2-2        SECTION 3.  EXCEPTIONS.  This Act does not apply to an
    2-3  insurance contract or to an agreement entered under the workers'
    2-4  compensation laws of this state.
    2-5        SECTION 4.  EFFECTIVE DATE.  This Act takes effect September
    2-6  1, 1993, and applies only to a construction contract entered on or
    2-7  after that date.
    2-8        SECTION 5.  Emergency.  The importance of this legislation
    2-9  and the crowded condition of the calendars in both houses create an
   2-10  emergency and an imperative public necessity that the
   2-11  constitutional rule requiring bills to be read on three several
   2-12  days in each house be suspended, and this rule is hereby suspended.