BILL ANALYSIS
S.B. 341
By: Armbrister
Economic Development
04-05-95
Committee Report (Amended)
BACKGROUND
Current law restricts an engineer's ability to seek contractual
indemnification from others. Engineers are prohibited from
requiring a contractor to indemnify the engineer against the
engineer's negligence. The engineer is prohibited by law from
passing the liability for his or her negligence onto a contractor,
but can be required to accept the negligence of an owner.
PURPOSE
As proposed, S.B. 341 amends the process of indemnification in
construction contracts by prohibiting owners from requiring
registered engineers or architects to indemnify the owner, owner's
agent, or employee against liability caused by the owner's, owner's
agent's, or employee's negligence.
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 Sections 130.001, 130.002, and 130.004, Civil
Practice and Remedies Code, as follows:
Sec. 130.001. DEFINITION. Redefines "construction
contract."
Sec. 130.002. COVENANT OR PROMISE VOID AND UNENFORCEABLE.
(a) Created from existing text. Makes a nonsubstantive
change.
(b) Provides that except as provided by Subsection (c), a
covenant or promise in connection with, or collateral to a
construction contract for other than a single or multifamily
residence is void and unenforceable if the covenant or
promise provides that a registered architect or engineer
whose work is the subject of the contract must indemnify the
owner or the owner's agent or employee against liability for
damages caused by or resulting from the negligence of the
owner or the owner's agent or employee and arising from
personal injury or death; property injury, or any other
expense that arises from personal injury, death, or property
injury.
(c) Provides that a covenant under which a registered
architect or engineer agrees to indemnify or hold harmless
the owner or the owner's agent or employee against liability
arising from personal injury or death of the architect or
engineer or employees of the architect or engineer is
enforceable.
Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY. Makes
conforming changes.
SECTION 2. Amends the heading of Chapter 130, Civil Practice and
Remedies Code, as follows:
CHAPTER 130. New title: INDEMNIFICATION IN CERTAIN CONSTRUCTION
CONTRACTS
SECTION 3. Makes application of this Act prospective.
SECTION 4. Emergency clause.
Effective date: upon passage.