SRC-AAA S.B. 1604 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1604
By: Lindsay
Jurisprudence
4-17-97
As Filed


DIGEST 

Currently, Chapter 127, Civil Practice and Remedies Code, voids any
provision indemnifying a party for certain damages attributable to the
negligence of the indemnitee or his agent or emoployee.  The language of
the statute is confusing and difficult to apply. This bill provides that
Chapter 127 does not apply to covenants, promises, agreements, and
understandings to indemnify made by an indemnitor having assets of more
than $25,000,000 at the end of its last fiscal year preceding the making
of the covenant, promise, agreement, or understanding. 
 
PURPOSE

As proposed, S.B. 1604 provides that Chapter 127, Civil Practice and
Remedies Code, does not apply to covenants, promises, agreements, and
understandings to indemnify made by an indemnitor having assets of more
than $25,000,000 at the end of its last fiscal year preceding the making
of the covenant, promise, agreement, or understanding. 
 
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS
  
SECTION 1. Amends Section 127.004, Civil Practice and Remedies Code, to
provide that this chapter does not apply to covenants, promises,
agreements, and understandings to indemnify made by an indemnitor having
assets of more than $25,000,000 at the end of its last fiscal year
preceding the making of the covenant, promise, agreement, or
understanding. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.