By Armbrister                                          S.B. No. 341
       74R3196 DLF-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to indemnification in certain construction contracts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Sections 130.001, 130.002, and 130.004, Civil
    1-5  Practice and Remedies Code, are amended to read as follows:
    1-6        Sec. 130.001.  DEFINITION.  In this chapter "construction
    1-7  contract" means a contract or agreement made and entered into by an
    1-8  owner, contractor, subcontractor, registered architect, registered
    1-9  engineer, or supplier concerning the design, construction,
   1-10  alteration, repair, or maintenance of a building, structure,
   1-11  appurtenance, road, highway, bridge, dam, levee, or other
   1-12  improvement to or on real property, including moving, demolition,
   1-13  and excavation connected with the real property.
   1-14        Sec. 130.002.  COVENANT OR PROMISE VOID AND UNENFORCEABLE.
   1-15  (a)  A covenant or promise in, in connection with, or collateral to
   1-16  a construction contract is void and unenforceable if the covenant
   1-17  or promise provides for a contractor who is to perform the work
   1-18  that is the subject of the construction contract to indemnify or
   1-19  hold harmless a registered architect or<,> registered engineer or
   1-20  an agent, servant, or employee of a registered architect or
   1-21  registered engineer from liability for damage that:
   1-22              (1)  is caused by or results from:
   1-23                    (A)  defects in plans, designs, or specifications
   1-24  prepared, approved, or used by the architect or engineer; or
    2-1                    (B)  negligence of the architect or engineer in
    2-2  the rendition or conduct of professional duties called for or
    2-3  arising out of the construction contract and the plans, designs, or
    2-4  specifications that are a part of the construction contract; and
    2-5              (2)  arises from:
    2-6                    (A)  personal injury or death;
    2-7                    (B)  property injury; or
    2-8                    (C)  any other expense that arises from personal
    2-9  injury, death, or property injury.
   2-10        (b)  A covenant or promise in, in connection with, or
   2-11  collateral to a construction contract is void and unenforceable if
   2-12  the covenant or promise provides that a registered architect or
   2-13  registered engineer whose work product is the subject of the
   2-14  construction contract must indemnify or hold harmless the owner or
   2-15  the owner's agent or employee against liability for damage that:
   2-16              (1)  is caused by or results from the negligence of the
   2-17  owner or the owner's agent or employee; and
   2-18              (2)  arises from:
   2-19                    (A)  personal injury or death;
   2-20                    (B)  property injury; or
   2-21                    (C)  any other expense that arises from personal
   2-22  injury, death, or property injury.
   2-23        Sec. 130.004.  OWNER OF INTEREST IN REAL PROPERTY.
   2-24  (a)  Except as provided by Section 130.002(b), this <This> chapter
   2-25  does not apply to an owner of an interest in real property or
   2-26  persons employed solely by that owner.
   2-27        (b)  Except as provided by Section 130.002(b), this <This>
    3-1  chapter does not prohibit or make void or unenforceable a covenant
    3-2  or promise to:
    3-3              (1)  indemnify or hold harmless an owner of an interest
    3-4  in real property and persons employed solely by that owner; or
    3-5              (2)  allocate, release, liquidate, limit, or exclude
    3-6  liability in connection with a construction contract between an
    3-7  owner or other person for whom a construction contract is being
    3-8  performed and a registered architect or registered engineer.
    3-9        SECTION 2.  The heading of Chapter 130, Civil Practice and
   3-10  Remedies Code, is amended to read as follows:
   3-11     CHAPTER 130. INDEMNIFICATION <OF ARCHITECTS AND ENGINEERS> IN
   3-12                    CERTAIN CONSTRUCTION CONTRACTS
   3-13        SECTION 3.  This Act applies only to a construction contract
   3-14  entered into on or after the effective date of this Act.  A
   3-15  construction contract entered into before the effective date of
   3-16  this Act is governed by the law as it existed immediately before
   3-17  the effective date of this Act, and that law is continued in effect
   3-18  for that purpose.
   3-19        SECTION 4.  The importance of this legislation and the
   3-20  crowded condition of the calendars in both houses create an
   3-21  emergency and an imperative public necessity that the
   3-22  constitutional rule requiring bills to be read on three several
   3-23  days in each house be suspended, and this rule is hereby suspended,
   3-24  and that this Act take effect and be in force from and after its
   3-25  passage, and it is so enacted.