HBA-MSH H.B. 2034 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2034
By: Bosse
Civil Practices
4/10/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas law provides that a contractor cannot be required to
indemnify an engineer or architect from certain liability arising from the
negligence of the engineer or architect. Engineers and architects, however,
are often faced with contractual provisions that require the engineer or
architect to indemnify an owner against liability arising from the owner's
negligence. These provisions are uninsurable under the coverages typically
carried by architects and engineers.  House Bill 2034 provides that these
provisions are void and unenforceable to the extent that an engineer or
architect is required to indemnify an owner against the owner's negligence. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2034 amends the Civil Practice and Remedies and Local Government
codes to modify  the definition of a "construction contract" to include
contracts or agreements made and entered into by a registered architect or
registered engineer.  The bill provides that a covenant or promise in
connection with or collateral to a construction contract other than a
contract  for a single family or multifamily residence is void and
unenforceable if the covenant or promise provides for a registered
architect or registered engineer whose work product is the subject of the
construction contract to indemnify or hold harmless an owner or owner's
agent or employee from liability for damage that is caused by or results
from the negligence of an owner of an owner's agent or employee and arises
from personal injury or death, property injury or any other expense that
arises from personal injury, death, or property injury. 

EFFECTIVE DATE

September 1, 2001.