HOUSE BILL No. 5466

 

March 13, 2012, Introduced by Reps. Heise, Haugh, Potvin, Wayne Schmidt, Horn, Knollenberg, Pettalia, Huuki and Haveman and referred to the Committee on Judiciary.

 

     A bill to amend 1966 PA 165, entitled

 

"An act to invalidate certain requirements for indemnity in the

construction industry,"

 

by amending the title and section 1 (MCL 691.991) and by adding

 

sections 2, 3, and 4.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to invalidate certain requirements for indemnity in the

 

construction industry.agreements relative to the design,

 

construction, alteration, repair, or maintenance of buildings,

 

structures, appurtenances, appliances, or infrastructure.

 

     Sec. 1. A covenant, promise, agreement or understanding in, or

 

An agreement is against public policy and is void and unenforceable

 

if both of the following requirements are met:

 

     (a) The agreement is in, in connection with, or collateral to,


 

a contract or agreement relative to for the design, construction,

 

alteration, repair, or maintenance of a building, structure,

 

appurtenance and appliance, including associated moving,

 

demolition, and or excavating. connected therewith, purporting to

 

indemnify the promisee

 

     (b) The agreement would indemnify a party to the agreement

 

against liability for damages arising out of bodily injury to

 

persons or damage to property caused by or resulting from the sole

 

negligence of the promisee or indemnitee, that party or his or her

 

agents or employees. , is against public policy and is void and

 

unenforceable.

 

     Sec. 2. An agreement between a public entity and a contractor

 

is against public policy and is void and unenforceable if both of

 

the following requirements are met:

 

     (a) The agreement is in, in connection with, or collateral to

 

a contract for the design, construction, alteration, repair, or

 

maintenance of a structure, including associated moving,

 

demolition, or excavating.

 

     (b) The agreement would require the contractor to do any of

 

the following:

 

     (i) Defend a party other than the public entity from claims.

 

     (ii) Assume any liability or indemnify the public entity for any

 

amount greater than an amount calculated based on the degree of fault

 

of the contractor.

 

     Sec. 3. This act does not affect the application of 1964 PA 170,

 

MCL 691.1401 to 691.1419.

 

     Sec. 4. As used in this act:


 

     (a) "Contractor" means any of the following who are licensed in

 

this state:

 

     (i) An architect.

 

     (ii) A professional engineer.

 

     (iii) A surveyor.

 

     (iv) A person who, pursuant to a contract with the owner or lessee

 

of real property, provides an improvement to real property.

 

     (b) "Public entity" means all of the following:

 

     (i) This state, any public body corporate in this state, and any

 

nonincorporated public body in this state, including, but not limited

 

to, a city, village, township, county, school district, intermediate

 

school district, or authority or an institution of higher education

 

described in or established under section 4, 5, 6, or 7 of article

 

VIII of the state constitution of 1963.

 

     (ii) Any agency of an entity described in subparagraph (i).

 

     (iii) Any employee or other agent of an entity described in

 

subparagraph (i) or (ii), including, but not limited to, a construction

 

manager retained by the entity.

 

     (c) "Structure" means an appliance, appurtenance, building,

 

infrastructure, or other structure.