Texas 2021 - 87th Regular

Texas House Bill HB3416 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3416
	1	+	By: Darby (Senate Sponsor - Lucio) H.B. No. 3416
	2	+	(In the Senate - Received from the House May 10, 2021;
	3	+	May 17, 2021, read first time and referred to Committee on Natural
	4	+	Resources & Economic Development; May 21, 2021, reported favorably
	5	+	by the following vote: Yeas 9, Nays 0; May 21, 2021, sent to
	6	+	printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to disclosures regarding indemnification obligations and
6	13		insurance coverage in connection with provision of services
7	14		pertaining to wells or mines by certain subcontractors.
8	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	16		SECTION 1. Title 6, Civil Practice and Remedies Code, is
10	17		amended by adding Chapter 127A to read as follows:
11	18		CHAPTER 127A. DISCLOSURES REGARDING INDEMNIFICATION OBLIGATIONS
12	19		AND INSURANCE COVERAGE REGARDING WELL OR MINE SERVICES PROVIDED BY
13	20		CERTAIN SUBCONTRACTORS
14	21		Sec. 127A.001. DEFINITIONS. In this chapter:
15	22		(1) "Temporary placement service" means an entity or
16	23		other person that employs individuals or contracts with another
17	24		entity or person to refer or assign personnel to the placement
18	25		service's clients to support or supplement the clients' workforce
19	26		in a special work situation, including:
20	27		(A) an employee absence;
21	28		(B) a temporary skill shortage;
22	29		(C) a seasonal or cyclical workload;
23	30		(D) work requiring uniquely skilled personnel;
24	31		or
25	32		(E) a special assignment or project.
26	33		(2) "Temporary subcontractor" means an independent
27	34		contractor who, in connection with performing well or mine
28	35		services:
29	36		(A) is referred to or placed by a temporary
30	37		placement service with the placement service's client; or
31	38		(B) has entered into an agreement with a
32	39		temporary placement service to provide those services to the
33	40		placement service's client.
34	41		(3) "Well or mine service" has the meaning assigned by
35	42		Section 127.001.
36	43		Sec. 127A.002. DISCLOSURE REGARDING TEMPORARY
37	44		SUBCONTRACTOR INDEMNIFICATION OBLIGATIONS AND INSURANCE COVERAGE
38	45		REQUIREMENTS. (a) Before a temporary placement service refers or
39	46		assigns a temporary subcontractor to the placement service's client
40	47		to perform well or mine services, the placement service shall
41	48		provide a written disclosure to the subcontractor that:
42	49		(1) describes the subcontractor's indemnification
43	50		obligations, if any, to the placement service and to the placement
44	51		service's client in connection with the services the subcontractor
45	52		will provide to the client;
46	53		(2) describes any insurance policy, including the
47	54		amount of coverage and any limits on coverage, that is provided for
48	55		the benefit of the subcontractor by the placement service or the
49	56		placement service's client, or both, in connection with the
50	57		services the subcontractor will provide to the client; and
51	58		(3) expressly states whether and to what extent any
52	59		insurance policy described by Subdivision (2) will cover the
53	60		subcontractor's tort liability and contractual indemnity
54	61		obligations arising out of the performance of the services by the
55	62		subcontractor for the placement service's client or clients.
56	63		(b) The disclosure required under Subsection (a) may state
57	64		that the disclosure does not alter, amend, or otherwise modify the
58	65		terms of any agreement governing services provided by the temporary
59	66		subcontractor or any insurance policy described by Subsection
60	67		(a)(2), provided that the temporary placement service is
61	68		responsible for the content of the disclosure.
62	69		(c) A temporary placement service shall:
63	70		(1) provide the disclosure required under Subsection
64	71		(a) to a temporary subcontractor as a separate document from any
65	72		agreement entered into with the subcontractor by the placement
66	73		service or the placement service's client; and
67	74		(2) ensure that the disclosure is written in plain
68	75		English and in a manner that is clear, concise, and designed to
69	76		enable the temporary subcontractor to understand the
70	77		subcontractor's contractual indemnity obligations, if any, and any
71	78		insurance policy provided for the benefit of the subcontractor in
72	79		connection with well or mine services to be performed by the
73	80		subcontractor.
74	81		(d) A temporary placement service may satisfy the
75	82		requirement to describe an insurance policy under Subsection (a)(2)
76	83		by providing to the temporary subcontractor a certificate of
77	84		insurance evidencing applicable coverage and limits.
78	85		Sec. 127A.003. DISCLOSURE REQUIREMENTS FOR ONGOING
79	86		INSURANCE POLICY. A temporary placement service that provides a
80	87		disclosure to a temporary subcontractor under Section 127A.002 that
81	88		states that an insurance policy described in that disclosure that
82	89		is provided for the benefit of the temporary subcontractor remains
83	90		in effect for a specified time period and with respect to a
84	91		specified client or clients is not required to provide that
85	92		subcontractor with an additional disclosure under Section 127A.002
86	93		for future services provided by the subcontractor to that client or
87	94		those clients until:
88	95		(1) the insurance policy is no longer in effect; or
89	96		(2) the placement service is required to provide the
90	97		subcontractor a new disclosure because of a change concerning the
91	98		insurance policy as provided under Section 127A.004.
92	99		Sec. 127A.004. NOTICE REQUIRED FOR CERTAIN CHANGES RELATED
93	100		TO INSURANCE POLICY. A temporary placement service shall provide a
94	101		temporary subcontractor who is provided a disclosure of a provided
95	102		insurance policy under Section 127A.002 a separate written notice
96	103		of a cancellation or nonrenewal of the policy or a material
97	104		reduction in coverage under the insurance policy not later than the
98	105		30th day before the date the cancellation or nonrenewal of the
99	106		policy or the material reduction in insurance coverage takes
100	107		effect.
101	108		SECTION 2. The change in law made by this Act applies only
102	109		to an agreement entered into on or after the effective date of this
103	110		Act.
104	111		SECTION 3. This Act takes effect September 1, 2021.
105		-	______________________________ ______________________________
106		-	President of the Senate Speaker of the House
107		-	I certify that H.B. No. 3416 was passed by the House on May 8,
108		-	2021, by the following vote: Yeas 136, Nays 4, 1 present, not
109		-	voting.
110		-	______________________________
111		-	Chief Clerk of the House
112		-	I certify that H.B. No. 3416 was passed by the Senate on May
113		-	24, 2021, by the following vote: Yeas 30, Nays 0.
114		-	______________________________
115		-	Secretary of the Senate
116		-	APPROVED: _____________________
117		-	Date
118		-	_____________________
119		-	Governor
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