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HB 3306

AN ACT relating to the applicability of certain laws affecting

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Modifies existing Texas law regarding indemnification agreements, specifically expanding exclusions for electric utility infrastructure contracts. The legislation allows for broader indemnification provisions in contracts related to electric utility infrastructure installation, construction, and vegetation management, providing more flexibility for utility companies and contractors in their legal agreements. The changes apply only to contracts entered into on or after September 1, 2025, leaving existing agreements under previous legal standards.

Subject Areas

Bill Text

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
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
(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
(4)  general agreements of indemnity required by
sureties as a condition of execution of bonds for construction
(5)  the benefits and protections under the workers'
compensation laws of this state;
(6)  the benefits or protections under the governmental
(7)  agreements subject to Chapter 127, Civil Practice
(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
(9)  an indemnity provision pertaining to a claim based
(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
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.

Bill History

filed

Bill filed: AN ACT relating to the applicability of certain laws affecting