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
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:
act to invalidate certain requirements for indemnity in
to the design,
construction, alteration, repair, or maintenance of buildings,
structures, appurtenances, appliances, or infrastructure.
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:
The agreement is in, in connection with, or
or agreement relative to for the design, construction,
repair, or maintenance of a
and appliance, including associated moving,
or excavating. connected therewith, purporting to indemnify
(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
the promisee or indemnitee, that
party or his or her
, 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
(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
(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.