1-1  By:  Armbrister                                        S.B. No. 341
    1-2        (In the Senate - Filed January 26, 1995; January 30, 1995,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  April 5, 1995, reported favorably, as amended, by the following
    1-5  vote:  Yeas 7, Nays 1; April 5, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                                By:  Ellis
    1-7  Amend S.B. No. 341 in SECTION 1 as follows:
    1-8        (1)  In the proposed Section 130.002(b), delete the first
    1-9  word "A" and insert "Except as provided by Subsection (c), a"
   1-10        (2)  Insert a new Section 130.002(c) to read as follows:
   1-11        (c)  A covenant under which a registered architect or
   1-12  registered engineer agrees to indemnify or hold harmless the owner
   1-13  or the owner's agent or employee against liability arising from the
   1-14  personal injury or death of the architect or engineer or the
   1-15  employees of the architect or engineer is enforceable.
   1-16        (3)  In Section 130.004(b), delete "Section 130.002(b)" and
   1-17  insert "Sections 130.002(b) and (c)".
   1-18  COMMITTEE AMENDMENT NO. 2                                By:  Ellis
   1-19  Amend S.B. No. 341 in Section 130.002, (b) after the word
   1-20  "contract" by adding the following:  "for other than a single or
   1-21  multifamily residence"
   1-22                         A BILL TO BE ENTITLED
   1-23                                AN ACT
   1-24  relating to indemnification in certain construction contracts.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Sections 130.001, 130.002, and 130.004, Civil
   1-27  Practice and Remedies Code, are amended to read as follows:
   1-28        Sec. 130.001.  DEFINITION.  In this chapter "construction
   1-29  contract" means a contract or agreement made and entered into by an
   1-30  owner, contractor, subcontractor, registered architect, registered
   1-31  engineer, or supplier concerning the design, construction,
   1-32  alteration, repair, or maintenance of a building, structure,
   1-33  appurtenance, road, highway, bridge, dam, levee, or other
   1-34  improvement to or on real property, including moving, demolition,
   1-35  and excavation connected with the real property.
   1-36        Sec. 130.002.  COVENANT OR PROMISE VOID AND UNENFORCEABLE.
   1-37  (a)  A covenant or promise in, in connection with, or collateral to
   1-38  a construction contract is void and unenforceable if the covenant
   1-39  or promise provides for a contractor who is to perform the work
   1-40  that is the subject of the construction contract to indemnify or
   1-41  hold harmless a registered architect or<,> registered engineer or
   1-42  an agent, servant, or employee of a registered architect or
   1-43  registered engineer from liability for damage that:
   1-44              (1)  is caused by or results from:
   1-45                    (A)  defects in plans, designs, or specifications
   1-46  prepared, approved, or used by the architect or engineer; or
   1-47                    (B)  negligence of the architect or engineer in
   1-48  the rendition or conduct of professional duties called for or
   1-49  arising out of the construction contract and the plans, designs, or
   1-50  specifications that are a part of the construction contract; and
   1-51              (2)  arises from:
   1-52                    (A)  personal injury or death;
   1-53                    (B)  property injury; or
   1-54                    (C)  any other expense that arises from personal
   1-55  injury, death, or property injury.
   1-56        (b)  A covenant or promise in, in connection with, or
   1-57  collateral to a construction contract is void and unenforceable if
   1-58  the covenant or promise provides that a registered architect or
   1-59  registered engineer whose work product is the subject of the
   1-60  construction contract must indemnify or hold harmless the owner or
   1-61  the owner's agent or employee against liability for damage that:
   1-62              (1)  is caused by or results from the negligence of the
   1-63  owner or the owner's agent or employee; and
   1-64              (2)  arises from:
   1-65                    (A)  personal injury or death;
   1-66                    (B)  property injury; or
   1-67                    (C)  any other expense that arises from personal
   1-68  injury, death, or property injury.
    2-1        Sec. 130.004.  OWNER OF INTEREST IN REAL PROPERTY.
    2-2  (a)  Except as provided by Section 130.002(b), this <This> chapter
    2-3  does not apply to an owner of an interest in real property or
    2-4  persons employed solely by that owner.
    2-5        (b)  Except as provided by Section 130.002(b), this <This>
    2-6  chapter does not prohibit or make void or unenforceable a covenant
    2-7  or promise to:
    2-8              (1)  indemnify or hold harmless an owner of an interest
    2-9  in real property and persons employed solely by that owner; or
   2-10              (2)  allocate, release, liquidate, limit, or exclude
   2-11  liability in connection with a construction contract between an
   2-12  owner or other person for whom a construction contract is being
   2-13  performed and a registered architect or registered engineer.
   2-14        SECTION 2.  The heading of Chapter 130, Civil Practice and
   2-15  Remedies Code, is amended to read as follows:
   2-16     CHAPTER 130. INDEMNIFICATION <OF ARCHITECTS AND ENGINEERS> IN
   2-17                    CERTAIN CONSTRUCTION CONTRACTS
   2-18        SECTION 3.  This Act applies only to a construction contract
   2-19  entered into on or after the effective date of this Act.  A
   2-20  construction contract entered into before the effective date of
   2-21  this Act is governed by the law as it existed immediately before
   2-22  the effective date of this Act, and that law is continued in effect
   2-23  for that purpose.
   2-24        SECTION 4.  The importance of this legislation and the
   2-25  crowded condition of the calendars in both houses create an
   2-26  emergency and an imperative public necessity that the
   2-27  constitutional rule requiring bills to be read on three several
   2-28  days in each house be suspended, and this rule is hereby suspended,
   2-29  and that this Act take effect and be in force from and after its
   2-30  passage, and it is so enacted.
   2-31                               * * * * *