Texas 2023 - 88th Regular

Texas House Bill HB2584 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R3231 KBB-D
2	2	By: Paul H.B. No. 2584
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to indemnification and duties of real property appraisers
8	8	under certain governmental contracts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter Z, Chapter 271, Local Government
11	11	Code, is amended by adding Section 271.9041 to read as follows:
12	12	Sec. 271.9041. APPRAISAL SERVICE CONTRACTS;
13	13	INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this
14	14	section, "governmental agency" has the meaning assigned by Section
15	15	271.003.
16	16	(b) This section applies only to a contract for appraisal
17	17	services for real property entered into by a licensed appraiser and
18	18	a governmental agency.
19	19	(c) A provision of a contract for appraisal services, or a
20	20	promise in connection with the contract, is void and unenforceable
21	21	if the provision requires a licensed appraiser to indemnify or hold
22	22	harmless a governmental agency against liability for damage, other
23	23	than damage to the extent the damage is caused by or results from an
24	24	act of:
25	25	(1) negligence;
26	26	(2) intentional tort;
27	27	(3) intellectual property infringement; or
28	28	(4) failure to pay:
29	29	(A) a subcontractor or supplier committed by the
30	30	appraiser or the appraiser's agent;
31	31	(B) a consultant under contract; or
32	32	(C) another person over which the appraiser
33	33	exercises control.
34	34	(d) Except as provided by Subsection (e)(2), a provision of
35	35	a contract for appraisal services, or a promise in connection with
36	36	the contract, is void and unenforceable if the provision requires a
37	37	licensed appraiser to defend a person against a claim based wholly
38	38	or partly on the negligence or fault of, or breach of contract by:
39	39	(1) the governmental agency that is a party to the
40	40	contract;
41	41	(2) an employee or agent of the governmental agency;
42	42	or
43	43	(3) another person over which the governmental agency
44	44	exercises control, other than the appraiser or an employee, agent,
45	45	or consultant of the appraiser.
46	46	(e) A contract for appraisal services may require:
47	47	(1) the reimbursement of a governmental agency's
48	48	reasonable attorney's fees in proportion to an appraiser's
49	49	liability; and
50	50	(2) an appraiser to name a governmental agency as an
51	51	additional insured under the appraiser's general liability
52	52	insurance policy and provide any defense provided by the policy.
53	53	(f) A contract for appraisal services must require a
54	54	licensed appraiser to perform services:
55	55	(1) with the professional skill and care ordinarily
56	56	provided by competent appraisers under the same or similar
57	57	circumstances and professional license; and
58	58	(2) as expeditiously as is prudent considering the
59	59	ordinary professional skill and care of a competent appraiser.
60	60	(g) A provision of a contract for appraisal services
61	61	establishing a different standard of care than a standard described
62	62	by Subsection (f) is void and unenforceable. If a contract contains
63	63	a void and unenforceable provision described by this subsection,
64	64	the standard of care described by Subsection (f) applies.
65	65	(h) This section does not prohibit a governmental agency
66	66	from including in and enforcing a provision in a contract for
67	67	appraisal services that relates to the scope, fees, and schedule of
68	68	a project in the contract.
69	69	SECTION 2. Section 271.9041, Local Government Code, as
70	70	added by this Act, applies only to a contract for appraisal services
71	71	for which a request for proposals or a request for qualifications is
72	72	first published or distributed on or after the effective date of
73	73	this Act.
74	74	SECTION 3. This Act takes effect September 1, 2023.