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HB 3306

Relating to the applicability of certain laws affecting indemnification agreements to certain contracts or agreements pertaining to electric utility infrastructure.

89th Legislature (2025) Introduced by Jay Dean and 1 co-sponsor

HB 3306 modifies indemnification agreement protections for Texas electric utility infrastructure contracts, potentially shifting liability exposure between utilities and contractors.

Left pending in committee
#civilremedies&liabilities(i0065) #insurance--property&casualty(i0442) #utilities--electric(i0831)
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Bill Summary · HB 3306

Legislative bill overview

HB 3306 modifies Texas law regarding indemnification agreements (contracts where one party agrees to compensate another for losses or liability) specifically for electric utility infrastructure contracts. The bill creates exemptions or altered applicability rules for certain indemnification protections that normally limit when parties can be forced to indemnify others for their own negligence.

Why is this important

Indemnification clauses significantly affect construction and infrastructure costs and liability exposure. By carving out electric utility infrastructure from standard indemnification protections, this bill could shift financial risk between utilities, contractors, and potentially consumers—affecting project bidding, insurance requirements, and ultimately utility rates or service costs.

Potential points of contention

  • Contractor protection vs. utility interests: Weakening indemnification protections may expose contractors to paying for damages caused by utilities' own negligence, potentially increasing contractor costs and reducing bid competition
  • Consumer impact: Changes to contractor liability frameworks could increase utility project costs, with potential pass-through to ratepayers through higher electricity rates
  • Scope ambiguity: The bill's language about "certain contracts" leaves questions about which specific agreements qualify, potentially creating litigation over applicability

Compiled from official sources — confirm details with the bill’s official record.

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