Dean Bill Lets Utilities Make Contractors Cover Utility Negligence

The text as introduced · 436 words

89R8018 AJA-F

By: Dean
H.B. No. 3306

A BILL TO BE ENTITLED

AN ACT

relating to the applicability of certain laws affecting

indemnification agreements to certain contracts or agreements

pertaining to electric utility infrastructure.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 151.105, Insurance Code, is amended to

read as follows:

Sec. 151.105. EXCLUSIONS. This subchapter does not affect:

(1) an insurance policy, including a policy issued

under an owner-controlled or owner-sponsored consolidated

insurance program or a contractor-controlled or

contractor-sponsored consolidated insurance program, except as

provided by Section 151.104;

(2) a cause of action for breach of contract or

warranty that exists independently of an indemnity obligation,

including an indemnity obligation in a construction contract under

a construction project for which insurance is provided under a

consolidated insurance program;

(3) indemnity provisions contained in loan and

financing documents, other than construction contracts to which the

contractor and owner's lender are parties as provided under Section

151.001(5);

(4) general agreements of indemnity required by

sureties as a condition of execution of bonds for construction

contracts;

(5) the benefits and protections under the workers'

compensation laws of this state;

(6) the benefits or protections under the governmental

immunity laws of this state;

(7) agreements subject to Chapter 127, Civil Practice

and Remedies Code;

(8) a license agreement between a railroad company and

a person that permits the person to enter the railroad company's

property as an accommodation to the person for work under a

construction contract that does not primarily benefit the railroad

company;

(9) an indemnity provision pertaining to a claim based

upon copyright infringement;

(10) an indemnity provision in a construction

contract, or in an agreement collateral to or affecting a

construction contract, pertaining to:

(A) a single family house, townhouse, duplex, or

land development directly related thereto; [ or ]

(B) a public works project of a municipality; or

(C) installation or construction of electric

infrastructure for or vegetation management for an electric utility

or a transmission and distribution utility as those terms are

defined by Section 31.002, Utilities Code; or

(11) a joint defense agreement entered into after a

claim is made.

SECTION 2. The change in law made by this Act applies only

to a contract or agreement entered into on or after the effective

date of this Act. A contract or agreement entered into before the

effective date of this Act is governed by the law as it existed

immediately before the effective date of this Act, and that law is

continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.