Bill Text: MN SF561 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Building and construction contracts agreements to insure prohibition
Sponsorship: Slight Partisan Bill (Democrat 17-8-1)
Status: (Passed) 2013-05-24 - Secretary of State Chapter 88 [SF561 Detail]
Download: Minnesota-2013-SF561-Engrossed.html
1.2relating to commerce; regulating building and construction contracts; prohibiting
1.3certain agreements to insure;amending Minnesota Statutes 2012, section 337.05,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 337.05, subdivision 1, is amended to read:
1.7 Subdivision 1. Agreements valid. (a) Except as otherwise provided in paragraph
1.8(b), sections337.01 to
337.05 do not affect the validity of agreements whereby a promisor
1.9agrees to provide specific insurance coverage for the benefit of others.
1.10(b) A provision that requires a party to provide insurance coverage to one or more
1.11other parties, including third parties, for the negligence or intentional acts or omissions
1.12of any of those other parties, including third parties, is against public policy and is void
1.13and unenforceable.
1.14(c) Paragraph (b) does not affect the validity of a provision that requires a party to
1.15provide or obtain workers' compensation insurance, construction performance or payment
1.16bonds, or project-specific insurance, including, without limitation, builder's risk policies
1.17or owner or contractor-controlled insurance programs or policies.
1.18(d) Paragraph (b) does not affect the validity of a provision that requires the promisor
1.19to provide or obtain insurance coverage for the promisee's vicarious liability, or liability
1.20imposed by warranty, arising out of the acts or omissions of the promisor.
1.21(e) Paragraph (b) does not apply to building and construction contracts for work
1.22within fifty feet of public or private railroads, or railroads regulated by the Federal
1.23Railroad Administration.
2.1EFFECTIVE DATE; APPLICATION.This section is effective August 1, 2013,
2.2and applies to agreements entered into on or after that date.
1.3certain agreements to insure;amending Minnesota Statutes 2012, section 337.05,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 337.05, subdivision 1, is amended to read:
1.7 Subdivision 1. Agreements valid. (a) Except as otherwise provided in paragraph
1.8(b), sections
1.9agrees to provide specific insurance coverage for the benefit of others.
1.10(b) A provision that requires a party to provide insurance coverage to one or more
1.11other parties, including third parties, for the negligence or intentional acts or omissions
1.12of any of those other parties, including third parties, is against public policy and is void
1.13and unenforceable.
1.14(c) Paragraph (b) does not affect the validity of a provision that requires a party to
1.15provide or obtain workers' compensation insurance, construction performance or payment
1.16bonds, or project-specific insurance, including, without limitation, builder's risk policies
1.17or owner or contractor-controlled insurance programs or policies.
1.18(d) Paragraph (b) does not affect the validity of a provision that requires the promisor
1.19to provide or obtain insurance coverage for the promisee's vicarious liability, or liability
1.20imposed by warranty, arising out of the acts or omissions of the promisor.
1.21(e) Paragraph (b) does not apply to building and construction contracts for work
1.22within fifty feet of public or private railroads, or railroads regulated by the Federal
1.23Railroad Administration.
2.1EFFECTIVE DATE; APPLICATION.This section is effective August 1, 2013,
2.2and applies to agreements entered into on or after that date.
