June 6, 2017, Introduced by Reps. Reilly, Lucido, Calley, Allor, Runestad, Johnson, Barrett, Hoitenga, Brann, Hauck, Kelly and Theis and referred to the Committee on Regulatory Reform.
A bill to amend 1966 PA 165, entitled
"An act to invalidate certain requirements for indemnity in the
construction industry,"
by amending section 1 (MCL 691.991), as amended by 2012 PA 468.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) In a contract for the design, construction,
alteration, repair, or maintenance of a building, a structure, an
appurtenance, an appliance, a highway, road, bridge, water line,
sewer line, or other infrastructure, or any other improvement to
real property, including moving, demolition, and excavating
connected
therewith, with that
improvement, a provision purporting
to indemnify the promisee 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,
or his or her agents or employees, is against public policy and is
void and unenforceable.
(2) When entering into a contract with a Michigan-licensed
architect,
professional engineer, landscape architect, or
professional surveyor or a landscape architect who is authorized to
do business in this state for the design of a building, a
structure, an appurtenance, an appliance, a highway, road, bridge,
water line, sewer line, or other infrastructure, or any other
improvement to real property, or a contract with a contractor for
the
construction, alteration, repair, or maintenance of any such an
improvement to real property, including moving, demolition, and
excavating
connected therewith, with
that improvement, a public
entity shall not require the Michigan-licensed architect,
professional
engineer, landscape architect, or professional
surveyor, the landscape architect, or the contractor to defend the
public entity or any other party from claims, or to assume any
liability or indemnify the public entity or any other party for any
amount greater than the degree of fault of the Michigan-licensed
architect,
professional engineer, landscape architect, or
professional surveyor, the landscape architect, or the contractor
and that of his or her respective subconsultants or subcontractors.
A contract provision executed in violation of this section is
against public policy and is void and unenforceable.
(3) For the purposes of this section, a contractor may be an
individual, sole proprietorship, partnership, corporation, limited
liability company, joint venture, construction manager, or other
business arrangement.
(4) As used in this section, "public entity" means this state
and
all agencies thereof, of
this state, any public body corporate
within
this state and all agencies thereof, of those public bodies,
and any nonincorporated public body within this state of whatever
nature
and all agencies thereof; of
those public bodies, including,
but not limited to, cities, villages, townships, counties, school
districts, intermediate school districts, authorities, and
community and junior colleges as provided for in section 7 of
article VIII of the state constitution of 1963, and their employees
and agents, including, but not limited to, construction managers or
other business arrangements retained by or contracting with the
public entity to manage or administer the contract for the public
entity. However, public entity does not include institutions of
higher education as described or provided for in section 4 or 6 of
article VIII of the state constitution of 1963, or their employees
or agents.
(5) Nothing in this act affects the application of 1964 PA
170, MCL 691.1401 to 691.1419.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 4695 (request no.
02929'17) of the 99th Legislature is enacted into law.