Texas 2023 - 88th Regular

Texas Senate Bill SB1766 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 1766
2	2
3	3
4	4	AN ACT
5	5	relating to indemnification and duties of real property appraisers
6	6	under certain governmental contracts.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter Z, Chapter 271, Local Government
9	9	Code, is amended by adding Section 271.9041 to read as follows:
10	10	Sec. 271.9041. APPRAISAL SERVICE CONTRACTS;
11	11	INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this
12	12	section, "governmental agency" has the meaning assigned by Section
13	13	271.003.
14	14	(b) This section applies only to a contract for appraisal
15	15	services for real property entered into by a licensed appraiser and
16	16	a governmental agency.
17	17	(c) A provision of a contract for appraisal services, or a
18	18	promise in connection with the contract, is void and unenforceable
19	19	if the provision requires a licensed appraiser to indemnify or hold
20	20	harmless a governmental agency against liability for damage, other
21	21	than damage to the extent the damage is caused by or results from an
22	22	act of:
23	23	(1) negligence;
24	24	(2) intentional tort;
25	25	(3) intellectual property infringement; or
26	26	(4) failure to pay:
27	27	(A) a subcontractor or supplier committed by the
28	28	appraiser or the appraiser's agent;
29	29	(B) a consultant under contract; or
30	30	(C) another person over which the appraiser
31	31	exercises control.
32	32	(d) Except as provided by Subsection (e)(2), a provision of
33	33	a contract for appraisal services, or a promise in connection with
34	34	the contract, is void and unenforceable if the provision requires a
35	35	licensed appraiser to defend a person against a claim based wholly
36	36	or partly on the negligence or fault of, or breach of contract by:
37	37	(1) the governmental agency that is a party to the
38	38	contract;
39	39	(2) an employee or agent of the governmental agency;
40	40	or
41	41	(3) another person over which the governmental agency
42	42	exercises control, other than the appraiser or an employee, agent,
43	43	or consultant of the appraiser.
44	44	(e) A contract for appraisal services may require:
45	45	(1) the reimbursement of a governmental agency's
46	46	reasonable attorney's fees in proportion to an appraiser's
47	47	liability; and
48	48	(2) an appraiser to name a governmental agency as an
49	49	additional insured under the appraiser's general liability
50	50	insurance policy and provide any defense provided by the policy.
51	51	(f) A contract for appraisal services must require a
52	52	licensed appraiser to perform services:
53	53	(1) with the professional skill and care ordinarily
54	54	provided by competent appraisers under the same or similar
55	55	circumstances and professional license; and
56	56	(2) as expeditiously as is prudent considering the
57	57	ordinary professional skill and care of a competent appraiser.
58	58	(g) A provision of a contract for appraisal services
59	59	establishing a different standard of care than a standard described
60	60	by Subsection (f) is void and unenforceable. If a contract contains
61	61	a void and unenforceable provision described by this subsection,
62	62	the standard of care described by Subsection (f) applies.
63	63	(h) This section does not prohibit a governmental agency
64	64	from including in and enforcing a provision in a contract for
65	65	appraisal services that relates to the scope, fees, and schedule of
66	66	a project in the contract.
67	67	SECTION 2. Section 271.9041, Local Government Code, as
68	68	added by this Act, applies only to a contract for appraisal services
69	69	for which a request for proposals or a request for qualifications is
70	70	first published or distributed on or after the effective date of
71	71	this Act.
72	72	SECTION 3. This Act takes effect September 1, 2023.
73	73	______________________________ ______________________________
74	74	President of the Senate Speaker of the House
75	75	I hereby certify that S.B. No. 1766 passed the Senate on
76	76	May 3, 2023, by the following vote: Yeas 31, Nays 0.
77	77	______________________________
78	78	Secretary of the Senate
79	79	I hereby certify that S.B. No. 1766 passed the House on
80	80	May 9, 2023, by the following vote: Yeas 140, Nays 0, two present
81	81	not voting.
82	82	______________________________
83	83	Chief Clerk of the House
84	84	Approved:
85	85	______________________________
86	86	Date
87	87	______________________________
88	88	Governor