By Bosse                                              H.B. No. 2034
         77R1963 AEI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to indemnification provisions concerning registered
 1-3     architects and registered engineers in certain construction
 1-4     contracts.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  The heading to Chapter 130, Civil Practice and
 1-7     Remedies Code, is amended to read as follows:
 1-8              CHAPTER 130.  INDEMNIFICATION [OF ARCHITECTS AND
 1-9                ENGINEERS] IN CERTAIN CONSTRUCTION CONTRACTS
1-10           SECTION 2.  Section 130.001, Civil Practice and Remedies
1-11     Code, is amended to read as follows:
1-12           Sec. 130.001.  DEFINITION.  In this chapter "construction
1-13     contract" means a contract or agreement made and entered into by an
1-14     owner, contractor, subcontractor, registered architect, registered
1-15     engineer, or supplier concerning the design, construction,
1-16     alteration, repair, or maintenance of a building, structure,
1-17     appurtenance, road, highway, bridge, dam, levee, or other
1-18     improvement to or on real property, including moving, demolition,
1-19     and excavation connected with the real property.
1-20           SECTION 3.  Section 130.002, Civil Practice and Remedies
1-21     Code, is amended to read as follows:
1-22           Sec. 130.002.  COVENANT OR PROMISE VOID AND UNENFORCEABLE.
1-23     (a) A covenant or promise in, in connection with, or collateral to
1-24     a construction contract is void and unenforceable if the covenant
 2-1     or promise provides for a contractor who is to perform the work
 2-2     that is the subject of the construction contract to indemnify or
 2-3     hold harmless a registered architect, registered engineer or an
 2-4     agent, servant, or employee of a registered architect or registered
 2-5     engineer from liability for damage that:
 2-6                 (1)  is caused by or results from:
 2-7                       (A)  defects in plans, designs, or specifications
 2-8     prepared, approved, or used by the architect or engineer; or
 2-9                       (B)  negligence of the architect or engineer in
2-10     the rendition or conduct of professional duties called for or
2-11     arising out of the construction contract and the plans, designs, or
2-12     specifications that are a part of the construction contract; and
2-13                 (2)  arises from:
2-14                       (A)  personal injury or death;
2-15                       (B)  property injury; or
2-16                       (C)  any other expense that arises from personal
2-17     injury, death, or property injury.
2-18           (b)  A covenant or promise in, in connection with, or
2-19     collateral to a construction contract other than a contract for a
2-20     single family or multifamily residence is void and unenforceable if
2-21     the covenant or promise provides for a registered architect or
2-22     registered engineer whose work product is the subject of the
2-23     construction contract to indemnify or hold harmless an owner or
2-24     owner's agent or employee from liability for damage that:
2-25                 (1)  is caused by or results from the negligence of an
2-26     owner or an owner's agent or employee; and
2-27                 (2)  arises from:
 3-1                       (A)  personal injury or death;
 3-2                       (B)  property injury; or
 3-3                       (C)  any other expense that arises from personal
 3-4     injury, death, or property injury.
 3-5           SECTION 4.  Section 130.004, Civil Practice and Remedies
 3-6     Code, is amended to read as follows:
 3-7           Sec. 130.004.  OWNER OF INTEREST IN REAL PROPERTY. (a)
 3-8     Except as provided by Section 130.002(b), this [This] chapter does
 3-9     not apply to an owner of an interest in real property or persons
3-10     employed solely by that owner.
3-11           (b)  Except as provided by Section 130.002(b), this [This]
3-12     chapter does not prohibit or make void or unenforceable a covenant
3-13     or promise to:
3-14                 (1)  indemnify or hold harmless an owner of an interest
3-15     in real property and persons employed solely by that owner; or
3-16                 (2)  allocate, release, liquidate, limit, or exclude
3-17     liability in connection with a construction contract between an
3-18     owner or other person for whom a construction contract is being
3-19     performed and a registered architect or registered engineer.
3-20           SECTION 5.  Section 271.904, Local Government Code, is
3-21     amended to read as follows:
3-22           Sec. 271.904.  INDEMNIFICATION. (a)  A [Except as provided by
3-23     Subsection (b), a] covenant or promise in, in connection with, or
3-24     collateral to a contract for engineering or architectural services
3-25     to which a governmental agency is a party is void and unenforceable
3-26     if the covenant or promise provides that a registered engineer or
3-27     registered architect whose work product is the subject of the
 4-1     contract must indemnify or hold harmless the governmental agency
 4-2     against liability for damage that:
 4-3                 (1)  is caused by or results from the negligence of the
 4-4     governmental agency or its agent or employee; and
 4-5                 (2)  arises from:
 4-6                       (A)  personal injury or death;
 4-7                       (B)  property injury; or
 4-8                       (C)  any other expense that arises from personal
 4-9     injury, death, or property injury.
4-10           (b)  [A covenant under which a registered engineer or
4-11     registered architect agrees to indemnify or hold harmless a
4-12     governmental agency or its agent or employees against liability
4-13     arising from the personal injury or death of the architect or
4-14     engineer or the employees of the architect or engineer is
4-15     enforceable.]
4-16           [(c)]  In this section, "governmental agency" has the meaning
4-17     assigned by Section 271.003.
4-18           SECTION 6.  This Act takes effect September 1, 2001, and
4-19     applies only to a construction contract entered into on or after
4-20     that date.  A construction contract entered into before the
4-21     effective date of this Act is governed by the law in effect on the
4-22     date the construction contract was entered into, and the former law
4-23     is continued in effect for that purpose.