SF 561

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 06/06/2013 03:13pm

A bill for an act
relating to commerce; regulating building and construction contracts; prohibiting
certain agreements to insure; amending Minnesota Statutes 2012, section 337.05,
subdivision 1.

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

Section 1.

Minnesota Statutes 2012, section 337.05, subdivision 1, is amended to read:

Subdivision 1.

Agreements valid.

(a) Except as otherwise provided in paragraph
(b), sections 337.01 to 337.05 do not affect the validity of agreements whereby a promisor
agrees to provide specific insurance coverage for the benefit of others.

(b) A provision that requires a party to provide insurance coverage to one or more
other parties, including third parties, for the negligence or intentional acts or omissions
of any of those other parties, including third parties, is against public policy and is void
and unenforceable.

(c) Paragraph (b) does not affect the validity of a provision that requires a party to
provide or obtain workers' compensation insurance, construction performance or payment
bonds, or project-specific insurance, including, without limitation, builder's risk policies
or owner or contractor-controlled insurance programs or policies.

(d) Paragraph (b) does not affect the validity of a provision that requires the promisor
to provide or obtain insurance coverage for the promisee's vicarious liability, or liability
imposed by warranty, arising out of the acts or omissions of the promisor.

(e) Paragraph (b) does not apply to building and construction contracts for work
within fifty feet of public or private railroads, or railroads regulated by the Federal
Railroad Administration.

EFFECTIVE DATE; APPLICATION.

This section is effective August 1, 2013,
and applies to agreements entered into on or after that date.