87R16679 JES-F
 
  By: Darby H.B. No. 3416
 
  Substitute the following for H.B. No. 3416:
 
  By:  Geren C.S.H.B. No. 3416
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to indemnity agreements between contractors and
  subcontractors for services pertaining to certain wells or mines.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 127, Civil Practice and Remedies Code,
  is amended by adding Section 127.0045 to read as follows:
         Sec. 127.0045.  TRIPARTY RELATIONSHIP AGREEMENT. (a) In
  this section, "triparty relationship agreement" means any
  agreement pertaining to a well for oil, gas, or water or to a mine
  for a mineral that provides:
               (1)  that a subcontractor may or will provide any part
  of a contractor's services required under a separate agreement with
  a third party; and
               (2)  for a mutual or unilateral indemnity obligation
  between the contractor and third party.
         (b)  Before entering into or renewing a triparty
  relationship agreement with a subcontractor or third party, a
  contractor shall provide written notice to:
               (1)  the subcontractor that:
                     (A)  describes the subcontractor's
  indemnification obligations to the contractor and to the third
  party with respect to the services the subcontractor will provide
  under any related agreement between the contractor and
  subcontractor;
                     (B)  is provided as a separate document from the
  agreements with the subcontractor and third party; and
                     (C)  is written in plain English and in a manner
  that is clear, concise, and designed to enable the subcontractor to
  understand the subcontractor's contractual indemnity obligations
  in connection with any services performed by the subcontractor
  pursuant to the triparty relationship agreement; and
               (2)  the third party that states:
                     (A)  whether the subcontractor possesses
  liability insurance coverage or qualified self-insurance in
  accordance with Section 127.005 for the subcontractor's indemnity
  obligations in connection with any services performed by the
  subcontractor pursuant to the triparty relationship agreement; and
                     (B)  the dollar limits of the subcontractor's
  insurance policy or qualified self-insurance, if any.
         (c)  A contractor may satisfy the requirement to provide a
  third party written notice under Subsection (b)(2) by providing the
  third party a certificate of insurance.
         SECTION 2.  The change in law made by this Act applies only
  to an agreement entered into on or after the effective date of this
  Act.
         SECTION 3.  This Act takes effect September 1, 2021.