88R3231 KBB-D     By: Creighton S.B. No. 1766       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.