Bill Text: MN HF256 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Motor carrier transportation contracts regulated, and indemnification provisions prohibited.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-01-27 - Introduction and first reading, referred to Transportation Policy and Finance [HF256 Detail]
Download: Minnesota-2011-HF256-Introduced.html
1.2relating to transportation; regulating motor carrier transportation contracts;
1.3prohibiting indemnification provisions; proposing coding for new law in
1.4Minnesota Statutes, chapter 221.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [221.87] INDEMNITY PROVISION IN MOTOR CARRIER
1.7TRANSPORTATION CONTRACTS.
1.8 Subdivision 1. Void. Notwithstanding any law to the contrary, a provision,
1.9clause, covenant, or agreement contained in, collateral to, or affecting a motor carrier
1.10transportation contract that purports to indemnify, defend, or hold harmless, or has the
1.11effect of indemnifying, defending, or holding harmless, the promisee from or against any
1.12liability for loss or damage resulting from the negligence or intentional acts or omissions
1.13of the promisee is against the public policy of this state and is void and unenforceable.
1.14This subdivision is limited to the extent provided in subdivision 2.
1.15 Subd. 2. Agreements to insure. (a) Subdivision 1 does not affect the validity
1.16of an agreement under which a promisor agrees to provide specific insurance coverage
1.17for the benefit of others if:
1.18(1) a promisor agrees to provide specific types and limits of insurance;
1.19(2) a claim arises within the scope of the specified insurance; and
1.20(3) the promisor did not obtain and keep in force the specified insurance.
1.21For a claim described in this paragraph, the promisee is entitled to indemnification from
1.22the promisor to the same extent as the specified insurance.
1.23(b) The indemnification stated in paragraph (a) is not available if:
1.24(1) the specified insurance was not reasonably available in the market; and
2.1(2) the promisor so informed the other party to the agreement to insure before
2.2signing the agreement, or signed the agreement subject to a written exception as to the
2.3nonavailable insurance.
2.4(c) Subdivision 1 does not affect the validity of an agreement under which:
2.5(1) a promisor agrees to provide specific types and limits of insurance;
2.6(2) a claim arises within the scope of the specified insurance; and
2.7(3) the insurance provided by the promisor includes a self-insured retention or a
2.8deductible amount.
2.9For a claim described in this paragraph, the promisee is entitled to indemnification from
2.10the promisor to the full extent of the deductible amount or self-insured retention.
2.11(d) A promisor's obligation to provide specified insurance is not waived by a
2.12promisee's failure to require or insist upon certificates or other evidence of insurance.
2.13 Subd. 3. Definitions. For the purposes of this section:
2.14(1) "motor carrier transportation contract" means a contract, agreement, or
2.15understanding covering:
2.16(i) the transportation of property for compensation or hire by the motor carrier;
2.17(ii) entrance on property by a motor carrier or a private carrier for the purpose of
2.18loading, unloading, or transporting property; or
2.19(iii) a service incidental to activity described in item (i) or (ii), including, but not
2.20limited to, the storage of property; and
2.21(2) "promisee" means the promisee and any agents, employees, servants, or
2.22independent contractors who are directly responsible to the promisee, but does not
2.23include motor carriers party to a motor carrier transportation contract with the promisee
2.24or the motor carrier's agents, employees, servants, or independent contractors directly
2.25responsible to the motor carrier.
2.26 Subd. 4. Exclusion. "Motor carrier transportation contract," as defined in this
2.27section, does not include the Uniform Intermodal Interchange and Facilities Access
2.28Agreement administered by the Intermodal Association of North America or other
2.29agreements providing for the interchange, use, or possession of intermodal chassis,
2.30containers, or other intermodal equipment.
2.31EFFECTIVE DATE; APPLICATION.This section is effective the day following
2.32final enactment and applies to existing contracts on that date and contracts entered into
2.33or renewed on or after that date.
1.3prohibiting indemnification provisions; proposing coding for new law in
1.4Minnesota Statutes, chapter 221.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [221.87] INDEMNITY PROVISION IN MOTOR CARRIER
1.7TRANSPORTATION CONTRACTS.
1.8 Subdivision 1. Void. Notwithstanding any law to the contrary, a provision,
1.9clause, covenant, or agreement contained in, collateral to, or affecting a motor carrier
1.10transportation contract that purports to indemnify, defend, or hold harmless, or has the
1.11effect of indemnifying, defending, or holding harmless, the promisee from or against any
1.12liability for loss or damage resulting from the negligence or intentional acts or omissions
1.13of the promisee is against the public policy of this state and is void and unenforceable.
1.14This subdivision is limited to the extent provided in subdivision 2.
1.15 Subd. 2. Agreements to insure. (a) Subdivision 1 does not affect the validity
1.16of an agreement under which a promisor agrees to provide specific insurance coverage
1.17for the benefit of others if:
1.18(1) a promisor agrees to provide specific types and limits of insurance;
1.19(2) a claim arises within the scope of the specified insurance; and
1.20(3) the promisor did not obtain and keep in force the specified insurance.
1.21For a claim described in this paragraph, the promisee is entitled to indemnification from
1.22the promisor to the same extent as the specified insurance.
1.23(b) The indemnification stated in paragraph (a) is not available if:
1.24(1) the specified insurance was not reasonably available in the market; and
2.1(2) the promisor so informed the other party to the agreement to insure before
2.2signing the agreement, or signed the agreement subject to a written exception as to the
2.3nonavailable insurance.
2.4(c) Subdivision 1 does not affect the validity of an agreement under which:
2.5(1) a promisor agrees to provide specific types and limits of insurance;
2.6(2) a claim arises within the scope of the specified insurance; and
2.7(3) the insurance provided by the promisor includes a self-insured retention or a
2.8deductible amount.
2.9For a claim described in this paragraph, the promisee is entitled to indemnification from
2.10the promisor to the full extent of the deductible amount or self-insured retention.
2.11(d) A promisor's obligation to provide specified insurance is not waived by a
2.12promisee's failure to require or insist upon certificates or other evidence of insurance.
2.13 Subd. 3. Definitions. For the purposes of this section:
2.14(1) "motor carrier transportation contract" means a contract, agreement, or
2.15understanding covering:
2.16(i) the transportation of property for compensation or hire by the motor carrier;
2.17(ii) entrance on property by a motor carrier or a private carrier for the purpose of
2.18loading, unloading, or transporting property; or
2.19(iii) a service incidental to activity described in item (i) or (ii), including, but not
2.20limited to, the storage of property; and
2.21(2) "promisee" means the promisee and any agents, employees, servants, or
2.22independent contractors who are directly responsible to the promisee, but does not
2.23include motor carriers party to a motor carrier transportation contract with the promisee
2.24or the motor carrier's agents, employees, servants, or independent contractors directly
2.25responsible to the motor carrier.
2.26 Subd. 4. Exclusion. "Motor carrier transportation contract," as defined in this
2.27section, does not include the Uniform Intermodal Interchange and Facilities Access
2.28Agreement administered by the Intermodal Association of North America or other
2.29agreements providing for the interchange, use, or possession of intermodal chassis,
2.30containers, or other intermodal equipment.
2.31EFFECTIVE DATE; APPLICATION.This section is effective the day following
2.32final enactment and applies to existing contracts on that date and contracts entered into
2.33or renewed on or after that date.
