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.