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SF 561

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

KEY: stricken = removed, old language.
underscored = added, new language.
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Current Version - 4th Engrossment

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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) 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.
 new text end

new text begin (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.
 new text end

new text begin (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.
 new text end

new text begin (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.
 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