HB256 PROHIBITS CERTAIN INDEMNIFICATION CONTRACTS ON PUBLIC AND PRIVATE CONSTRUCTION WORKS.
Sponsor: Green, Timothy P. (73) Effective Date:00/00/0000
CoSponsor: Foster, Bill I. (156) LR Number:0419-03
Last Action: 07/13/1999 - Approved by Governor (G)
07/13/1999 - Delivered to Secretary of State
HS HCS HB 256
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
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Available Bill Summaries for HB256 Copyright(c)
* Truly Agreed * Perfected * Committee * Introduced

Available Bill Text for HB256
* Truly Agreed * Perfected * Committee * Introduced *

Available Fiscal Notes for HB256
* House Substitute * House Committee Substitute * Introduced *

BILL SUMMARIES

TRULY AGREED

HS HCS HB 256 -- CONSTRUCTION CONTRACTS

This bill declares that in any contract for construction work a
contracting party's agreement to indemnify or hold harmless
another person from that person's own negligence is void as
against public policy and unenforceable.  The bill does not
apply to a contracting party's agreement to indemnify another
person from the party's negligence; a party's agreement to cause
another person to be covered as an insured; contracts between or
among state agencies or political subdivisions; certain
contracts involving public property; construction bonds;
insurance contracts; railroads regulated by the Federal Railroad
Administration; agreements that require a party to obtain
specified limits of insurance, with liability limited to such
limits; and contracts in existence prior to the bill's effective
date.


PERFECTED

HS HCS HB 256 -- CONSTRUCTION CONTRACTS (George)

This substitute declares that a contracting party's agreement to
indemnify or hold harmless another person from that person's own
negligence is void as against public policy and unenforceable.
The substitute does not apply to:  a contracting party's
agreement to indemnify another person from the party's
negligence; a party's agreement to cause another person to be
covered as an insured; contracts between or among state agencies
or political subdivisions; certain contracts involving public
property; construction bonds; insurance contracts; railroads
regulated by the Federal Railroad Administration; agreements
that require a party to obtain specified limits of insurance,
with liability limited to such limits; and contracts in
existence prior to the substitute's effective date.

FISCAL NOTE:  No impact on state funds.


COMMITTEE

HCS HB 256 -- CONSTRUCTION CONTRACTS

SPONSOR:  Hickey (George)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Labor by
a vote of 19 to 0.

This substitute declares that a contracting party's agreement to
indemnify or hold harmless another person from that person's own
negligence is void as against public policy and unenforceable.
The substitute does not apply to:  a contracting party's
agreement to indemnify another person from the party's
negligence; a party's agreement to cause another person to be
covered as an insured; contracts between or among state agencies
or political subdivisions; certain contracts involving public
property; construction bonds; insurance contracts; and contracts
in existence prior to the substitute's effective date.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill makes people
responsible for their own acts of negligence and wrongdoing.  It
helps subcontractors who, by virtue of these indemnification
clauses and their unequal negotiating power, have been forced to
become the insurance agent for an entire construction project.

Testifying for the bill were Representatives Green and Foster;
American Subcontractors' Association; The Builders' Association;
and Associated General Contractors of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Julie Jinkens McNitt, Legislative Analyst


INTRODUCED

HB 256 -- Construction Contracts

Co-Sponsors:  Green, Foster

This bill declares that a contracting party's agreement to
indemnify or hold harmless another person from that person's own
negligence is void as against public policy and unenforceable.
The bill does not apply to:  a contracting party's agreement to
indemnify another person from the party's negligence; a party's
agreement to cause another person to be covered as an insured;
contracts between or among state agencies or political
subdivisions; certain contracts involving public property;
construction bonds; insurance contracts; and contracts in
existence prior to the bill's effective date.


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Last Updated September 30, 1999 at 1:23 pm