Amend CSSB 1952 (House Committee Report) by adding the
following PART, appropriately numbered, and renumbering subsequent
parts accordingly:
PART ___. CERTAIN PROVISIONS IN CONSTRUCTION CONTRACTS
ARTICLE __A. INDEMNIFICATION PROVISIONS IN CONSTRUCTION CONTRACTS
SECTION __A.01. Title 6, Civil Practice and Remedies Code,
is amended by adding Chapter 138 to read as follows:
CHAPTER 138. ENFORCEMENT OF CERTAIN PROVISIONS IN CONSTRUCTION
CONTRACTS
Sec. 138.001. DEFINITION. In this chapter, "construction
contract" means a contract or agreement entered into or made by an
owner, contractor, subcontractor, or supplier concerning the
construction, alteration, repair, troubleshooting, or maintenance
of a building, structure, appurtenance, or other improvement to or
on real property, including moving, demolition, and excavation
connected with the real property.
Sec. 138.002. AGREEMENT VOID AND UNENFORCEABLE. A
provision, promise, understanding, or covenant contained in,
collateral to, or affecting a construction contract is void and
unenforceable to the extent that it provides or purports to provide
to the indemnitee defense or indemnity, or both, against loss or
liability that:
(1) is caused by or results from the sole or concurrent
negligence, including strict liability, of the indemnitee, an agent
or employee of the indemnitee, or an independent contractor
directly responsible to the indemnitee; and
(2) arises or results from:
(A) death or bodily injury to a person;
(B) damage to property;
(C) a fine, penalty, administrative action, or
other action by a governmental entity; or
(D) any other loss, damage, or expense that
arises from an occurrence described by Paragraph (A), (B), or (C).
Sec. 138.003. EFFECT ON INSURANCE POLICY. A provision in a
construction contract requiring an insurance policy provision or
endorsement that would frustrate or circumvent the prohibitions of
this chapter, including the payment of all or a portion of an
indemnitor's insurance premium by an indemnitee, is also void and
unenforceable.
Sec. 138.004. WAIVER PROHIBITED. The provisions of this
chapter may not be waived by contract or otherwise.
Sec. 138.005. CONFLICT OF LAWS. A covenant, promise,
agreement, or understanding that is contained in or collateral to
or that affects a construction contract or a related insurance
policy provision or endorsement and that provides that the law of
another state will apply to the contractual relationship between
the indemnitor and the indemnitee is against public policy and void
if the premises where the labor is performed or the materials are
delivered under the contract are in this state or its territorial
reach.
Sec. 138.006. APPLICABILITY OF OTHER LAW. This chapter
prevails over any other law that conflicts with or is inconsistent
with this chapter.
SECTION __A.02. (a) Chapter 138, Civil Practice and
Remedies Code, as added by this article, applies to a construction
contract entered into or renewed on or after the effective date of
this article and to any specific, terminable performance of a
specific job or activity begun under a construction contract after
the effective date of this article, including performance under a
master or general service agreement, a blanket or maintenance
contract, or any similar agreement or contract that purports to
provide indemnity to the indemnitee for all or part of the work
performed, in whatever form and by whatever name, regardless of
whether the agreement or contract was entered into or renewed
before the effective date of this article.
(b) Except as provided by Subsection (a) of this section, a
construction contract entered into or renewed before the effective
date of this article is governed by the law in effect immediately
before the effective date of this article, and that law is continued
in effect for that purpose.