Bill Text: TX HB2584 | 2023-2024 | 88th Legislature | Comm Sub

Texas House Bill 2584

Bill Title: Relating to indemnification and duties of real property appraisers under certain governmental contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-05-08 - Laid on the table subject to call [HB2584 Detail]

Download: Texas-2023-HB2584-Comm_Sub.html

	88R3231 KBB-D

	By: Paul	H.B. No. 2584



	A BILL TO BE ENTITLED
	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.