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.