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 * * * * *