1.1 	A bill for an act
1.2 	relating to contracts; regulating building and construction contracts;amending 
1.3 	Minnesota Statutes 2006, sections 337.01, subdivisions 2, 3, by adding a 
1.4 	subdivision; 337.02; 337.05, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 337.01, subdivision 2, is amended to read:
1.7 		Subd. 2.Building and construction contract. "Building and construction 
1.8 	contract" means a contract for the design, construction, alteration, improvement, repair 
1.9 	or maintenance of real property, highways, roads or bridges. The term does not include 
1.10 	contracts for the maintenance or repair of machinery, equipment or other such devices 
1.11 	used as part of a manufacturing, converting or other production process, including 
1.12 	electric, gas, steam, and telephone utility equipment used for production, transmission, 
1.13 	or distribution purposes.

1.14 	Sec. 2. Minnesota Statutes 2006, section 337.01, is amended by adding a subdivision 
1.15 	to read:
1.16 		Subd. 2a.Professional services contract. "Professional services contract" means 
1.17 	contracts for services that are provided by persons licensed under Minnesota Statutes, 
1.18 	sections 326.02 to 326.15.

1.19 	Sec. 3. Minnesota Statutes 2006, section 337.01, subdivision 3, is amended to read:
1.20 		Subd. 3.Indemnification agreement. "Indemnification agreement" means an 
1.21 	agreement by the promisor to indemnify or hold harmless the promisee against liability or 
2.1 	claims of liability for damages arising out of bodily injury to persons or out of physical 
2.2 	damage to tangible or real property or for economic loss.

2.3 	Sec. 4. Minnesota Statutes 2006, section 337.02, is amended to read:
2.4 	337.02 UNENFORCEABILITY OF CERTAIN AGREEMENTS.
2.5 	An indemnification agreement contained in, or executed in connection with, a 
2.6 	professional services contract or a building and construction contract is unenforceable 
2.7 	except to the extent that: (1) the underlying injury or damage is attributable to the 
2.8 	negligent or otherwise wrongful act or omission, including breach of a specific contractual 
2.9 	duty, of the promisor or the promisor's independent contractors, agents, employees, 
2.10 	or delegatees; or (2) an owner, a responsible party, or a governmental entity agrees to 
2.11 	indemnify a contractor directly or through another contractor with respect to strict liability 
2.12 	under environmental laws.

2.13 	Sec. 5. Minnesota Statutes 2006, section 337.05, subdivision 1, is amended to read:
2.14 		Subdivision 1.Agreements valid. Sections 337.01 to 337.05 do not affect the 
2.15 	validity of agreements building and construction contracts whereby a promisor agrees to 
2.16 	provide specific insurance coverage for the benefit of others.