BILL ANALYSIS H.B. 2517 By: Bosse 04-26-95 Committee Report (Unamended) BACKGROUND Current law, (Vernon's Texas Civil Statutes, Article 6701d-11) holds motor carriers are liable for those wrongful or negligent acts which they are directly responsible for. TAC 5.142 Contract for Indemnity, limits carrier indemnification to "any wrongful or negligent act or omission on the part of the motor carrier, its officers, agents or employees." When federal deregulation of motor carriers occurred last year, the scope of the indemnification clauses were no longer restricted. Many "Master Service Contracts", written by the shippers, are worded in such a way that the carrier must indemnify and hold harmless the shipper and all the shipper's sub-contractors from all wrongful or negligent acts on the part of the shipper or its subcontractors, in addition to the actions of the motor carrier itself. PURPOSE HB 2517 specifically limits a motor carrier's indemnification to wrongful or negligent acts on the part of the motor carrier. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Chapter 42, General Laws Acts of the 41st Legislature, 2nd Called Session, 1929 (Article 6701d-11, Vernon's Texas Civil Statutes) by adding Section 3c which prohibits anyone from requiring indemnification from a motor carrier (a)as a condition to such carrier transporting property for hire or (b)as a condition to such carrier from entering upon any property for the purpose of loading, unloading or transporting property for hire other than as relates to claims, demands, losses, damages and liability resulting from the wrongful or negligent acts on the part of the motor carrier. SECTION 2: Emergency Clause. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on April 7, 1995 at 5:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 12, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 3:58 p.m. by the Chair, Representative Clyde Alexander. The Chair laid out H.B. 2517 and recognized Representative Bosse to explain H.B. 2517. The Chair recognized the following persons who testified in support of H.B. 2517. Bill Haley, Texas Motor Transportation Association. Tim Herman, Texas Motor Transportation Association. There were no witnesses testifying in opposition. The Chair left H.B. 2517 pending before the Committee. Pursuant to a public notice posted on April 21, 1995, at 4:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 26, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 6:13 p.m. by the Chair, Representative Clyde Alexander. The Chair laid out H.B. 2517 by Bosse, which was pending before the Committee. Representative Uher moved that the Committee report H.B. 2517, without amendments, to the full House with the recommendation that it do pass. The motion prevailed by the following vote: Ayes (8), Nayes (0), Absent (1), Present not voting (0).