Noreen Evans
- Democratic
Author
Existing law provides that provisions in construction contracts, as defined, that purport to indemnify the promisee against liability for damages for death or bodily injury to persons, injury to property, or any other loss arising from the sole negligence or willful misconduct of the promisee or the promisee's agents who are directly responsible to the promisee, or for defects in design furnished by those persons, are against public policy and are void and unenforceable. Existing law provides that provisions in construction contracts with a public agency that purport to impose on the contractor, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable. Existing law excepts from these provisions agreements to indemnify with professional engineers, among others. Existing law prescribes different requirements and prohibitions for residential construction contracts entered on and after January 1, 2009. This bill would provide, for construction contracts and amendments executed on and after January 1, 2013, that are not for residential construction or a direct contract with a public agency or the owner of private property, as specified, that purport to insure or indemnify, including the cost to defend, a general contractor, construction manager, or other subcontractor, by a subcontractor against liability for claims of death or bodily injury to persons, injury to property, or any other loss, damage, or expense are unenforceable to the extent the claims relate to the active negligence or willful misconduct of that general contractor, construction manager, or other subcontractor, or their other agents, as specified, or for defects in design furnished by those persons, or to the extent the claims do not arise out of the scope of work of the subcontractor in the written agreement between the parties. The bill would require that California law be applied to these contracts regardless of any choice-of-law rules that might otherwise apply. The bill would except certain contractual provisions and types of insurance from these provisions, including an agreement between a subcontractor and general contractor or construction manager as to the timing or immediacy of the defense and provisions for reimbursement of defense fees and costs, as specified. The bill would provide that waiver of these provisions is contrary to public policy, void, and unenforceable. This bill would provide, for construction contracts entered into on and after January 1, 2013, with a public agency, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable. The bill also would provide, for construction contracts entered into on and after January 1, 2013, with the owner of privately owned real property to be improved, as specified, and as to which the owner is not acting as a contractor, construction manager, or supplier of materials or equipment to the work, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the owner from, liability are unenforceable to the extent of the active negligence of the owner, including that of its employees. The bill would except from these provisions a homeowner performing improvement projects on his or her own single family dwelling. This bill would expand the definition of "construction contract" for purposes of these provisions, to include agreements for renovations and would include agreements respecting, among other things, utility, water, sewer, oil, and gas lines.
Approved by the Governor.
Chaptered by Secretary of State. Chapter 707, Statutes of 2011.
Enrolled and presented to the Governor at 3:30 p.m.
(Enrolled measure version corrected.)
Assembly amendments concurred in. (Ayes 39. Noes 1. Page 2401.) Ordered to engrossing and enrolling.
In Senate. Concurrence in Assembly amendments pending.
Read third time. Passed. (Ayes 69. Noes 1. Page 2936.) Ordered to the Senate.
Ordered to third reading.
Read third time and amended. (Page 2769.)
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 6. Noes 3.) (June 28).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 22. Noes 13. Page 1216.) Ordered to the Assembly.
Read second time. Ordered to third reading.
Ordered to second reading.
Read third time and amended.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 3. Noes 2. Page 972.) (May 12).
Joint Rule 62(a) file notice suspended. (Ayes 22. Noes 13. Page 960.)
Set for hearing May 12.
Set, first hearing. Hearing canceled at the request of author.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
Set for hearing May 10.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
From printer. May be acted upon on or after March 20.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB474 | HTML |
| 02/17/11 - Introduced | |
| 03/25/11 - Amended Senate | |
| 05/02/11 - Amended Senate | |
| 05/24/11 - Amended Senate | |
| 06/21/11 - Amended Assembly | |
| 07/05/11 - Amended Assembly | |
| 09/01/11 - Amended Assembly | |
| 09/12/11 - Enrolled | |
| 10/09/11 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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