S.B. No. 1766
AN ACT
relating to indemnification and duties of real property appraisers
under certain governmental contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.9041 to read as follows:
Sec. 271.9041. APPRAISAL SERVICE CONTRACTS;
INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this
section, "governmental agency" has the meaning assigned by Section
271.003.
(b) This section applies only to a contract for appraisal
services for real property entered into by a licensed appraiser and
a governmental agency.
(c) A provision of a contract for appraisal services, or a
promise in connection with the contract, is void and unenforceable
if the provision requires a licensed appraiser to indemnify or hold
harmless a governmental agency against liability for damage, other
than damage to the extent the damage is caused by or results from an
act of:
(1) negligence;
(2) intentional tort;
(3) intellectual property infringement; or
(4) failure to pay:
(A) a subcontractor or supplier committed by the
appraiser or the appraiser's agent;
(B) a consultant under contract; or
(C) another person over which the appraiser
exercises control.
(d) Except as provided by Subsection (e)(2), a provision of
a contract for appraisal services, or a promise in connection with
the contract, is void and unenforceable if the provision requires a
licensed appraiser to defend a person against a claim based wholly
or partly on the negligence or fault of, or breach of contract by:
(1) the governmental agency that is a party to the
contract;
(2) an employee or agent of the governmental agency;
or
(3) another person over which the governmental agency
exercises control, other than the appraiser or an employee, agent,
or consultant of the appraiser.
(e) A contract for appraisal services may require:
(1) the reimbursement of a governmental agency's
reasonable attorney's fees in proportion to an appraiser's
liability; and
(2) an appraiser to name a governmental agency as an
additional insured under the appraiser's general liability
insurance policy and provide any defense provided by the policy.
(f) A contract for appraisal services must require a
licensed appraiser to perform services:
(1) with the professional skill and care ordinarily
provided by competent appraisers under the same or similar
circumstances and professional license; and
(2) as expeditiously as is prudent considering the
ordinary professional skill and care of a competent appraiser.
(g) A provision of a contract for appraisal services
establishing a different standard of care than a standard described
by Subsection (f) is void and unenforceable. If a contract contains
a void and unenforceable provision described by this subsection,
the standard of care described by Subsection (f) applies.
(h) This section does not prohibit a governmental agency
from including in and enforcing a provision in a contract for
appraisal services that relates to the scope, fees, and schedule of
a project in the contract.
SECTION 2. Section 271.9041, Local Government Code, as
added by this Act, applies only to a contract for appraisal services
for which a request for proposals or a request for qualifications is
first published or distributed on or after the effective date of
this Act.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1766 passed the Senate on
May 3, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1766 passed the House on
May 9, 2023, by the following vote: Yeas 140, Nays 0, two present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor