87R7608 JES-F
By: Lucio S.B. No. 1599
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. SUBCONTRACTOR AGREEMENT. (a) Except as
provided by Subsection (b), this chapter applies to an agreement
pertaining to a well for oil, gas, or water or to a mine for a
mineral that provides:
(1) that a subcontractor will provide any part of a
contractor's services required under a separate contract with a
third party; and
(2) for a mutual or unilateral indemnity obligation
between the contractor, subcontractor, and third party.
(b) Subsection (a) does not apply to an agreement for which
the contractor, on or before entering into the agreement, provides
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 the agreement;
(B) is provided as a separate document from the
agreement; 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 indemnity obligations under the
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; and
(B) the dollar limits of the subcontractor's
insurance policy or qualified self-insurance, if any.
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.