By Hardcastle H.B. No. 3105
77R7172 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to indemnification in construction contracts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Title 6, Civil Practice and Remedies Code, is
1-5 amended by adding Chapter 145 to read as follows:
1-6 CHAPTER 145. INDEMNITY PROVISIONS IN CONSTRUCTION CONTRACTS
1-7 Sec. 145.001. DEFINITION. In this chapter, "construction
1-8 contract" means a contract or agreement made and entered into by an
1-9 owner, contractor, subcontractor, or supplier concerning the
1-10 construction, alteration, repair, or maintenance of a building,
1-11 structure, appurtenance, or other improvement to or on real
1-12 property, including moving, demolition, and excavation connected
1-13 with the real property.
1-14 Sec. 145.002. AGREEMENT VOID AND UNENFORCEABLE. A covenant,
1-15 promise, agreement, or understanding contained in a construction
1-16 contract, or in an agreement collateral to or affecting a
1-17 construction contract, is void and unenforceable if it indemnifies,
1-18 holds harmless, or defends a person against loss or liability for
1-19 damage that:
1-20 (1) is caused by or results from the sole or
1-21 concurrent negligence of the indemnitee, its agent or employee, or
1-22 an independent contractor, other than the indemnitor, directly
1-23 responsible to the indemnitee; and
1-24 (2) arises from:
2-1 (A) personal injury or death;
2-2 (B) property damage;
2-3 (C) a fine, penalty, administrative action, or
2-4 other action assessed by a governmental entity directly against the
2-5 indemnitee, its agent or employee, or an individual contractor
2-6 directly responsible to the indemnitee; or
2-7 (D) any other loss, damage, or expense that
2-8 arises from an occurrence described by Subparagraph (A), (B), or
2-9 (C).
2-10 Sec. 145.003. INSURANCE LIMITATION. (a) An insurance
2-11 policy provision or endorsement relating to a construction contract
2-12 may apply only to damages arising from the negligence of the person
2-13 who is the named insured.
2-14 (b) A policy provision or endorsement that applies to
2-15 damages arising from the negligence of a person other than the
2-16 named insured is void and unenforceable.
2-17 Sec. 145.004. EFFECT ON INSURANCE CONTRACT. Except as
2-18 provided by Section 145.003, this chapter does not affect the
2-19 applicability, validity, or enforceability of an insurance
2-20 contract.
2-21 Sec. 145.005. CONTRIBUTION. This chapter does not affect a
2-22 right of contribution established under Chapter 33 or another
2-23 statute.
2-24 Sec. 145.006. WAIVER PROHIBITED. The provisions of this
2-25 chapter may not be waived by contract or otherwise.
2-26 SECTION 2. This Act takes effect September 1, 2001.
2-27 SECTION 3. Chapter 145, Civil Practice and Remedies Code, as
3-1 added by this Act, applies only to an agreement described by
3-2 Section 145.002, Civil Practice and Remedies Code, as added by this
3-3 Act, entered into on or after the effective date of this Act. An
3-4 agreement entered into before the effective date of this Act is
3-5 governed by the law applicable to the agreement immediately before
3-6 the effective date of this Act, and that law is continued in effect
3-7 for that purpose.
3-8 SECTION 4. Section 145.003, Civil Practice and Remedies
3-9 Code, as added by this Act, applies only to an insurance policy
3-10 that is delivered, issued for delivery, or renewed on or after the
3-11 effective date of this Act. A policy that is delivered, issued for
3-12 delivery, or renewed after the effective date of this Act is
3-13 governed by the law as it existed immediately before that date, and
3-14 that law is continued in effect for that purpose.