SB 1077

  • California Senate Bill
  • 2017-2018 Regular Session
  • Introduced in Senate Feb 12, 2018
  • Passed Senate May 17, 2018
  • Assembly
  • Governor

Construction contracts: wrap-up insurance and indemnification.

Abstract

Existing law regulates the use of wrap-up insurance or other consolidated insurance programs in connection with specified construction projects. Existing law distinguishes, in this regard, between residential construction projects, private residential works of improvement, as specified, and public works and other projects that are not residential, as specified. In this regard, among other things, for residential construction to which wrap-up insurance or another consolidated insurance program is applicable, existing law declares unenforceable a provision requiring a subcontractor who is enrolled and participating in the insurance to indemnify, hold harmless, or defend another for a claim or action covered by the insurance program. Existing law makes any waiver of these provisions void. Existing law permits a party to pursue an equitable indemnity claim in this context, subject to certain conditions, if these indemnification provisions have been deemed unenforceable. Existing law, with regard to a private residential work of improvement and public works, as specified, requires an owner, builder, or general contractor who obtains wrap-up insurance or other insurance to make specified disclosures regarding calculations of its cost and the premiums to be required from a subcontractor or other participant and, in the case of private residential works of improvement, that specified estimates are presumptively in good faith. Existing law requires a copy of the insurance policy to be provided to a subcontractor or other participant under certain circumstances. Existing law, with respect to construction contracts entered into on and after January 1, 2013, voids certain insurance and indemnity provisions, subject to a variety of exceptions that are reserved to the agreement of the parties. This bill would recast the wrap-up insurance or other consolidated insurance program requirements for public and other works of improvement that are not residential construction, entered into or amended on and after January 1, 2019, to track generally the requirements that apply to residential projects. The bill would require the owner, builder, or general contractor obtaining the wrap-up insurance policy, or other consolidated insurance program, to demonstrate that the policy limits are sufficient, on a replacement cost basis, to cover exposure associated with the total value of the replacement cost of the project based on the initial contract sum and ongoing and completed operations coverage. The bill would provide that, notwithstanding any other law, any waiver of these provisions is contrary to public policy and void.

Bill Sponsors (1)

Votes


Actions


Aug 28, 2018

Assembly

Ordered to inactive file on request of Assembly Member Calderon.

Aug 24, 2018

Assembly

Ordered to third reading.

Assembly

Read third time and amended.

Aug 21, 2018

Assembly

Read second time. Ordered to third reading.

Aug 20, 2018

Assembly

Read second time and amended. Ordered to second reading.

Aug 16, 2018

Assembly

From committee: Do pass as amended. (Ayes 12. Noes 0.) (August 16).

Aug 08, 2018

Assembly

August 8 set for first hearing. Placed on APPR. suspense file.

Jun 27, 2018

Assembly

June 27 hearing postponed by committee.

Jun 19, 2018

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 19). Re-referred to Com. on APPR.

  • Committee-Passage-Favorable
  • Committee-Passage
  • Referral-Committee
Com. on APPR.

Jun 13, 2018

Assembly

From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  • Reading-2
  • Referral-Committee
  • Amendment-Passage
  • Committee-Passage
  • Reading-1
Com. on JUD.

May 25, 2018

Assembly

Referred to Com. on JUD.

  • Referral-Committee
Com. on JUD.

May 17, 2018

Assembly

In Assembly. Read first time. Held at Desk.

Senate

Read third time. Passed. (Ayes 38. Noes 0. Page 5089.) Ordered to the Assembly.

May 15, 2018

Senate

Read second time. Ordered to consent calendar.

May 14, 2018

Senate

From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.

May 07, 2018

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  • Reading-2
  • Referral-Committee
  • Amendment-Passage
  • Committee-Passage
  • Reading-1
Com. on APPR.

May 04, 2018

Senate

Set for hearing May 14.

May 01, 2018

Senate

May 7 hearing postponed by committee.

Apr 27, 2018

Senate

Set for hearing May 7.

Apr 25, 2018

Senate

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 4814.) (April 24). Re-referred to Com. on APPR.

  • Committee-Passage-Favorable
  • Committee-Passage
  • Referral-Committee
Com. on APPR.

Apr 16, 2018

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  • Reading-2
  • Referral-Committee
  • Amendment-Passage
  • Committee-Passage
  • Reading-1
Com. on JUD.

Apr 05, 2018

Senate

Set for hearing April 24.

Apr 04, 2018

Senate

April 17 set for first hearing canceled at the request of author.

Mar 29, 2018

Senate

Set for hearing April 17.

Feb 22, 2018

Senate

Referred to Com. on JUD.

  • Referral-Committee
Com. on JUD.

Feb 13, 2018

Senate

From printer. May be acted upon on or after March 15.

Feb 12, 2018

Senate

Introduced. Read first time. To Com. on RLS. for assignment. To print.

Bill Text

Bill Text Versions Format
SB1077 HTML
02/12/18 - Introduced PDF
04/16/18 - Amended Senate PDF
05/07/18 - Amended Senate PDF
06/13/18 - Amended Assembly PDF
08/20/18 - Amended Assembly PDF
08/24/18 - Amended Assembly PDF

Related Documents

Document Format
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Sources

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