January 24, 2006
HOUSE BILL No. 1214
_____
DIGEST OF HB 1214
(Updated January 23, 2006 12:33 pm - DI 96)
Citations Affected: IC 8-2.1.
Synopsis: Indemnity agreements in motor carrier contracts. Provides
that certain indemnity provisions contained in, collateral to, or affecting
a motor carrier transportation contract are against public policy and are
void and unenforceable.
Effective: July 1, 2006.
January 10, 2006, read first time and referred to Committee on Roads and Transportation.
January 23, 2006, amended, reported _ Do Pass.
January 24, 2006
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1214
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and transportation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 8-2.1-26; (06)HB1214.1.1. -->
SECTION 1. IC 8-2.1-26 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 26. Invalidity of Indemnity Agreements in Motor
Carrier Transportation Contracts
Sec. 1. This chapter applies to an indemnity provision entered
into or renewed after June 30, 2006.
Sec. 2. As used in this chapter, "indemnity provision" means a
provision, a clause, a covenant, or an agreement that:
(1) is contained in, collateral to, or affecting a motor carrier
transportation contract; and
(2) purports to indemnify, defend, or hold harmless, or has the
effect of indemnifying, defending, or holding harmless, a
promisee against liability for loss or damage resulting from:
(A) negligence;
(B) intentional acts; or
(C) omissions;
of the promisee or an agent, employee, servant, or
independent contractor that is directly responsible to the
promisee.
Sec. 3. As used in this chapter, "motor carrier transportation
contract" means a contract, an agreement, or an understanding
covering:
(1) the transportation of property for compensation or hire by
a motor carrier as defined under this article or by 49 U.S.C.
13102(12);
(2) the entrance on real property by a motor carrier to:
(A) load;
(B) unload; or
(C) transport property for compensation or hire; or
(3) a service incidental to an activity described in subdivision
(1) or (2), including storage of property.
Sec. 4. As used in this chapter, "promisee" means a person that
an indemnity provision:
(1) purports to indemnify, defend, or hold harmless; or
(2) has the effect of indemnifying, defending, or holding
harmless.
Sec. 5. (a) This section does not apply to any of the following:
(1) An indemnity provision in which a motor carrier
indemnifies a promisee for and only to the extent of loss or
damage that results directly from the negligence, omission, or
intentional act of the motor carrier or an agent, employee,
servant, or independent contractor that is directly responsible
to the motor carrier.
(2) An indemnity provision contained in, collateral to, or
affecting a motor carrier transportation contract with a
regulated public utility, including an energy utility (as defined
in IC 8-1-2.5-2) or an affiliate of an energy utility, if the
contract relates to a utility product, service, or business
operation. For purposes of this subdivision, a contract relates
to a utility product, service, or business operation if it involves
an activity necessary for or ancillary to the production or
delivery of heat, power and light, or a product or service
under the jurisdiction of the Indiana utility regulatory
commission (as described in IC 8-1-1).
(3) The Uniform Intermodal Interchange and Facilities Access
Agreement administered by the Intermodal Association of
North America.
(b) Notwithstanding any other law, an indemnity provision
under this chapter is:
(1) against public policy; and
(2) void and unenforceable.