BILL ANALYSIS


                                                        H.B. 2517
                                               By: Bosse (Sibley)
                                             Economic Development
                                                          5-23-95
                              Senate Committee Report (Unamended)
BACKGROUND

Many "master service contracts," written by shippers, are worded in
such a way that the carrier must indemnify and hold harmless the
shipper and all the shipper's subcontractors 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

As proposed, H.B. 2517 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 42, Article 6701d-11, V.T.C.S., by adding
Section 3C, as follows:

     Sec. 3C.  Provides that no persons may require indemnification
     from a motor carrier as a condition to (a) such carrier
     transporting property for compensation or hire; or (b)
     entering upon any property for the purpose of loading,
     unloading, or transporting property for compensation or hire
     other than as relates to claims, demands, losses, damages, and
     liability resulting from the wrongful or negligent act or
     omission on the part of the motor carriers.
     
SECTION 2. Emergency clause.
           Effective date: 90 days after adjournment.