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.





Davis, Stilwell




    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 Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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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.