Brief⁽¹⁾

H.B. 2483, as amended, enacts new law relative to construction contracts. The bill declares "indemnification provisions" against public policy and void and unenforceable.

"Indemnification provision" is a covenant, promise, agreement, or understanding in connection with or collateral to a construction contract that requires the promisor to insure, hold harmless, indemnify, or defend the promisee or others against liability for damages.

The House Committee amendments change the words "agreement" to "provision" and make the public policy statement specific to construction contracts.

Background

H.B. 2483, as amended, was addressed by the Kansas Contractors Association whose spokespersons explained that indemnification clauses change who is liable for problems that occur on the owner's property when the contractor is involved in construction and give undo responsibility to the contractor. Apparently, about 20 other states have such anti-indemnification statutes.

Additional supporters of the bill include the General Counsel for Insurance Management Associates, and the Kansas Association of Insurance Agents. The representative of the American Institute of Architects Kansas spoke in opposition to the broad application of the bill.

The bill will have no fiscal impact.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.