79R2504 MFC-F

By:  Carona                                                       S.B. No. 445



A BILL TO BE ENTITLED

AN ACT

relating to indemnification provisions in construction contracts.             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The Civil Practice and Remedies Code is amended 
by adding Title 10 to read as follows:

TITLE 10.  ADDITIONAL MISCELLANEOUS PROVISIONS

CHAPTER 502.  INDEMNITY PROVISIONS IN CONSTRUCTION CONTRACTS
	Sec. 502.001.  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, remodeling, repair, or maintenance of a 
building, structure, appurtenance, or other improvement to or on 
public or private real property, including moving, demolition, and 
excavation connected with the real property.
	Sec. 502.002.  AGREEMENT VOID AND UNENFORCEABLE.  A 
covenant, promise, or understanding contained in a construction 
contract, or in an agreement collateral to or affecting a 
construction contract, is void and unenforceable if it purports to 
indemnify, hold harmless, or defend a person against loss or 
liability for damage that:
		(1)  is caused by or results from the sole or concurrent 
negligence of the indemnitee, its agent or employee, or an 
independent contractor, other than the indemnitor, directly 
responsible to the indemnitee; and
		(2)  arises or results from:                                           
			(A)  personal injury or death;                                        
			(B)  property damage;                                                 
			(C)  a fine, penalty, administrative action, or 
other action assessed by a governmental entity directly against the 
indemnitee, its agent or employee, or an independent contractor 
directly responsible to the indemnitee; or
			(D)  any other loss, damage, or expense that 
arises from an occurrence described by Paragraph (A), (B), or (C).
	Sec. 502.003.  UNENFORCEABLE INSURANCE PROVISIONS.  A 
covenant, promise, agreement, or understanding contained in a 
construction contract, or in an agreement collateral to or 
affecting a construction contract, that requires a person to 
provide insurance coverage or does provide insurance coverage, is 
void and unenforceable to the extent that:
		(1)  it requires coverage, including any coverage for 
an indemnitee as an additional insured, that exceeds the 
limitations and indemnity obligations of this chapter; or
		(2)  it requires an insurance policy to be endorsed to 
provide a waiver of subrogation.
	Sec. 502.004.  INSURANCE CONTRACTS; WORKERS' COMPENSATION.  
This chapter does not otherwise affect the validity and 
enforceability of:
		(1)  an insurance contract; or                                         
		(2)  the benefits or protections under the workers' 
compensation laws of this state.
	Sec. 502.005.  WAIVER PROHIBITED.  The provisions of this 
chapter may not be waived by contract or otherwise.  Any purported 
waiver is void and unenforceable.
	Sec. 502.006.  APPLICABILITY OF OTHER LAW.  This chapter 
prevails over any other law that conflicts with or is inconsistent 
with this chapter.
	SECTION 2.  Section 2252.902, Government Code, is repealed.                    
	SECTION 3.  This Act applies only to liability for an act of 
negligence under a construction contract entered into on or after 
the effective date of this Act.  Liability for an act of negligence 
under a construction contract entered into 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 4.  This Act takes effect September 1, 2005.