Overview: SB 1231 establishes that the regulation and use of indemnity agreements in construction and design professional services contracts are a matter of statewide concern.
League Position:NEUTRAL -
The League generally opposes state interference in how local contracts are written. We are working with the proponents of the bill to better understand what the bill is trying to achieve.
With the amendments adopted on SB 1231, the legislation's negative impacts on municipal contracting policies are largely mitigated.
Summary: SB 1231 prohibits professional services contracts connected to public buildings or improvements from requiring a contractor from defending, indemnifying, insuring, or holding harmless the contracting agent from liability, except in cases of negligence, recklessness or wrongful conduct.
02/06/13: SB 1231 unanimously passed the Senate Committee on Commerce, Energy and Military with a technical amendment.
02/14/13: SB 1231 passed out of Senate COW. The bill was additionally amended with a Rules and floor amendment, both of which contained technical and conforming changes. The bill now proceeds to Third Read.
02/18/13: SB 1231 passed Third Read unanimously. It has been assigned to the House Government Committee.
03/11/13: SB 1231 was held in the House Government Committee.
03/19/13: SB 1231 passed amended out of the House Government Committee with a vote of 7 ayes, 1 nay and 1 not voting. The bill now proceeds to House Rules Committee.
06/13/13: SB 1231 passed the Legislature with amendments that addressed stakeholder concerns. The bills now proceeds to the Governor for action.