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Minnesota Legislature

Office of the Revisor of Statutes

HF 1099

as introduced - 89th Legislature (2015 - 2016) Posted on 05/18/2016 09:06am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/19/2015

Current Version - as introduced

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A bill for an act
relating to contracts; modifying and clarifying requirements relating to building
and construction contracts; amending Minnesota Statutes 2014, sections 337.01,
subdivision 3; 337.05, subdivision 1.

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

Section 1.

Minnesota Statutes 2014, section 337.01, subdivision 3, is amended to read:


Subd. 3.

Indemnification agreement.

"Indemnification agreement" means an
agreement by the promisor to indemnifynew text begin, defend,new text end or hold harmless the promisee against
liability or claims of liability for damages arising out of bodily injury to persons or out of
physical damage to tangible or real property.

Sec. 2.

Minnesota Statutes 2014, 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, deleted text beginor project-specific insurance, including, without limitation,deleted text end builder's risk policiesnew text begin,new text end
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 50 feet of public or private railroads, or railroads regulated by the Federal Railroad
Administration.

Sec. 3. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment and apply to
agreements entered into on or after that date.
new text end