Texas Senate Bill SB1599

Texas 2021 - 87th Regular

Caption

Relating to disclosures regarding indemnification obligations and insurance coverage in connection with provision of services pertaining to wells or mines by certain subcontractors.

Impact

If enacted, SB1599 will affect civil practice laws by adding a new chapter to the Civil Practice and Remedies Code. This legislation is designed to protect temporary subcontractors by clarifying their indemnity obligations and ensuring they have access to necessary insurance information. It is intended to reduce potential disputes related to liability and coverage, thereby fostering a more secure working environment for subcontractors engaged in high-risk industries like oil, gas, and mining.

Summary

SB1599 aims to enhance transparency surrounding indemnification obligations and insurance coverage related to well and mining services provided by temporary subcontractors in Texas. The bill mandates that before any temporary placement service refers or assigns a subcontractor for such services, a written disclosure outlining the subcontractor's indemnification responsibilities and relevant insurance coverage must be provided. This ensures that subcontractors are fully informed about their legal and financial responsibilities before accepting work assignments.

Sentiment

The sentiment surrounding SB1599 appears to be generally positive among those advocating for improved protections for temporary workers in high-risk fields. Supporters argue that the bill will help subcontractors better understand their responsibilities and the support available to them through insurance. However, potential opponents may express concerns regarding the administrative burden placed on placement services to provide these disclosures, or about the implications for small businesses within the subcontracting industry that may struggle with compliance.

Contention

Some notable points of contention may arise around the specifics of the insurance requirements as mandated by the bill. Critics could argue that the added requirement for disclosures may complicate the hiring process for temporary subcontractors and thus may inadvertently limit opportunities for employment in these sectors. Additionally, discussions may focus on whether the regulations introduce unnecessary challenges or financial burdens for placement services, particularly smaller entities that may have less capacity to accommodate compliance with the new law.