78R9081 T

By:  Deshotel                                                     H.B. No. 3201



A BILL TO BE ENTITLED

AN ACT

relating to enforcement of certain provisions in construction 
contracts.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 6, Civil Practice and Remedies Code, is 
amended by adding Chapter 138 to read as follows:

CHAPTER 138.  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; or
	Sec. 138.006.  APPLICABILITY OF OTHER LAW.  This chapter 
prevails over any other law that conflicts with or is inconsistent 
with this chapter.
	SECTION 2.  (a)  This Act applies to a construction contract 
entered into or renewed on or after the effective date of this Act 
and to any specific, terminable performance of a specific job or 
activity begun under a construction contract after the effective 
date of this Act, 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 Act.
	(b)  A construction contract entered into or renewed before 
the effective date of this Act and any job or activity under the 
contract begun before the effective date of this Act is governed by 
the law in effect immediately before the effective date of this Act, 
and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2003.