SF 561

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/14/2013 03:16pm

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.

new text begin (a) Except as otherwise provided in paragraph
(b), new text end 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.

new text begin (b) An agreement or contract 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 parties, including third parties, is against
public policy and is void and unenforceable. This subdivision does not prohibit an
agreement or contract provision for workers' compensation, construction performance
or payment bonds, vicarious liability coverage, or to obtain project specific insurance,
including, without limitation, builder's risk policies or owner or contractor-controlled
insurance programs or policies.
new text end

new text begin (c) 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.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

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