By: Creighton S.B. No. 1766
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to indemnification and duties of real property appraisers
  under certain governmental contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 271, Local Government
  Code, is amended by adding Section 271.9041 to read as follows:
         Sec. 271.9041.  APPRAISAL SERVICE CONTRACTS;
  INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this
  section, "governmental agency" has the meaning assigned by Section
  271.003.
         (b)  This section applies only to a contract for appraisal
  services for real property entered into by a licensed appraiser and
  a governmental agency.
         (c)  A provision of a contract for appraisal services, or a
  promise in connection with the contract, is void and unenforceable
  if the provision requires a licensed appraiser to indemnify or hold
  harmless a governmental agency against liability for damage, other
  than damage to the extent the damage is caused by or results from an
  act of:
               (1)  negligence;
               (2)  intentional tort;
               (3)  intellectual property infringement; or
               (4)  failure to pay:
                     (A)  a subcontractor or supplier committed by the
  appraiser or the appraiser's agent;
                     (B)  a consultant under contract; or
                     (C)  another person over which the appraiser
  exercises control.
         (d)  Except as provided by Subsection (e)(2), a provision of
  a contract for appraisal services, or a promise in connection with
  the contract, is void and unenforceable if the provision requires a
  licensed appraiser to defend a person against a claim based wholly
  or partly on the negligence or fault of, or breach of contract by:
               (1)  the governmental agency that is a party to the
  contract;
               (2)  an employee or agent of the governmental agency;
  or 
               (3)  another person over which the governmental agency
  exercises control, other than the appraiser or an employee, agent,
  or consultant of the appraiser.
         (e)  A contract for appraisal services may require:
               (1)  the reimbursement of a governmental agency's
  reasonable attorney's fees in proportion to an appraiser's
  liability; and
               (2)  an appraiser to name a governmental agency as an
  additional insured under the appraiser's general liability
  insurance policy and provide any defense provided by the policy.
         (f)  A contract for appraisal services must require a
  licensed appraiser to perform services:
               (1)  with the professional skill and care ordinarily
  provided by competent appraisers under the same or similar
  circumstances and professional license; and
               (2)  as expeditiously as is prudent considering the
  ordinary professional skill and care of a competent appraiser.
         (g)  A provision of a contract for appraisal services
  establishing a different standard of care than a standard described
  by Subsection (f) is void and unenforceable. If a contract contains
  a void and unenforceable provision described by this subsection,
  the standard of care described by Subsection (f) applies.
         (h)  This section does not prohibit a governmental agency
  from including in and enforcing a provision in a contract for
  appraisal services that relates to the scope, fees, and schedule of
  a project in the contract.
         SECTION 2.  Section 271.9041, Local Government Code, as
  added by this Act, applies only to a contract for appraisal services
  for which a request for proposals or a request for qualifications is
  first published or distributed on or after the effective date of
  this Act.
         SECTION 3.  This Act takes effect September 1, 2023.