AN ACT TO PROTECT THE INTERESTS OF DESIGNERS, PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS THAT VIOLATE THE EXISTING PUBLIC POLICY OF NORTH CAROLINA. SL 2019-92. Enacted July 8, 2019. Effective August 1, 2019.
FAIR CONTRACTS. (NEW)
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View NCGA Bill Details(link is external) | 2019-2020 Session |
AN ACT TO PROTECT THE INTERESTS OF DESIGNERS, PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS THAT VIOLATE THE EXISTING PUBLIC POLICY OF NORTH CAROLINA.Intro. by Arp, Stevens, Reives, Floyd.
Bill History:
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Tue, 16 Apr 2019 House: Filed(link is external)
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Tue, 16 Apr 2019 House: Filed(link is external)
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Mon, 22 Apr 2019 House: Passed 1st Reading(link is external)
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Mon, 22 Apr 2019 House: Passed 1st Reading(link is external)
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Tue, 30 Apr 2019 House: Reptd Fav Com Substitute(link is external)
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Thu, 2 May 2019 House: Reptd Fav(link is external)
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Thu, 2 May 2019 House: Cal Pursuant Rule 36(b)(link is external)
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Thu, 2 May 2019 House: Placed On Cal For 05/03/2019(link is external)
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Thu, 2 May 2019 House: Added to Calendar(link is external)
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Thu, 2 May 2019 House: Passed 2nd Reading(link is external)
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Thu, 2 May 2019 House: Passed 3rd Reading(link is external)
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Thu, 2 May 2019 House: Passed 3rd Reading(link is external)
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Fri, 3 May 2019 House: Regular Message Sent To Senate(link is external)
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Mon, 6 May 2019 Senate: Regular Message Received From House(link is external)
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Mon, 6 May 2019 Senate: Passed 1st Reading(link is external)
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Thu, 13 Jun 2019 Senate: Withdrawn From Com(link is external)
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Tue, 18 Jun 2019 Senate: Reptd Fav(link is external)
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Tue, 25 Jun 2019 Senate: Reptd Fav(link is external)
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Wed, 26 Jun 2019 Senate: Amend Adopted A1(link is external)
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Wed, 26 Jun 2019 Senate: Passed 2nd Reading(link is external)
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Wed, 26 Jun 2019 Senate: Passed 3rd Reading(link is external)
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Wed, 26 Jun 2019 Senate: Special Message Sent To House(link is external)
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Wed, 26 Jun 2019 House: Cal Pursuant 36(b)(link is external)
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Wed, 26 Jun 2019 House: Placed On Cal For 06/27/2019(link is external)
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Thu, 27 Jun 2019 House: Concurred In S Amend SA1(link is external)
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Thu, 27 Jun 2019 House: Ordered Enrolled(link is external)
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Thu, 27 Jun 2019 House: Ratified(link is external)
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Fri, 28 Jun 2019 House: Pres. To Gov. 6/28/2019(link is external)
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Mon, 8 Jul 2019 House: Signed by Gov. 7/8/2019(link is external)
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Mon, 8 Jul 2019 House: Ch. SL 2019-92(link is external)
Bill Summaries:
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Bill H 871 (2019-2020)Summary date: Jul 8 2019 - View Summary
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Bill H 871 (2019-2020)Summary date: Jun 26 2019 - View Summary
Senate amendment to the 1st edition makes the following change.
Deletes the proposed changes to GS 22B-1, and instead amends the statute to provide the following. Renders provisions in or in connection with a construction agreement or design professional agreement void and unenforceable if they require a promisor to indemnify or hold harmless the promisee, or its agents, against liability claims for damages for liabilities arising out of bodily injury to persons or damage to property proximately caused by or resulting from the negligence of the promisee or its agents (previously, voided specified construction promises or agreements). Similarly, renders provisions in or in connection with a construction agreement or design professional void and unenforceable if they require the promisor to indemnify or hold harmless the promisee, or its agents, against losses, damages, or expenses, unless the fault of the promisor or its derivative parties is a proximate cause of the loss, damage, or expense indemnified. Provides that these provisions do not exclude from any enforceable indemnity or hold harmless provisions attorneys' fees, litigation or arbitration expenses, or court costs actually incurred by the promisee to defend against third party claims, if the fault of the promisor or its derivative parties is a proximate cause of the attorneys' fees litigation or arbitration expenses, or court costs to be indemnified.
Additionally, renders provisions in or in connection with a construction agreement that includes design professional services or a design professional agreement void and unenforceable if they require a design professional to defend a promissee or its agents, or any other person or entity, against liability or claims for damages or expenses, including attorneys' fees, proximately caused or allegedly caused by the professional negligence of the promisor, the promisee, or other derivative parties.
Maintains that the statute does not affect an insurance contract, workers' compensation, or any other agreement issued by an insurer. Eliminates the exemption for promises or agreements under which a public utility is an indemnitee, and contracts entered into by the Department of Transportation under GS 136-28.1. Exempts from the statute lien or bond claims asserted under GS Chapter 44A, Statutory Liens and Charges.
Adds eight defined terms.
Changes the effective date of the act from October 1, 2019, to August 1, 2019.
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Bill H 871 (2019-2020)Summary date: Apr 30 2019 - View Summary
House committee substitute makes the following changes to the 1st edition.
Further amends GS 22B-1 to more specifically refer to subdivision a. of GS 62-3(23), defining public utility. Makes a clarifying change.
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Bill H 871 (2019-2020)Summary date: Apr 18 2019 - View Summary
Amends GS 22B-1 to render contracts for engineering, architectural, landscape architectural, or surveying services void and unenforceable if the parties require that one party will indemnify or hold harmless the other party, or its agents, against liability claims for damages, losses, or expenses. Allows indemnification agreements only for damages resulting from the negligence, recklessness, or intentionally wrongful conduct of the promisor. Makes conforming changes. Effective October 1, 2019.
House committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO PROTECT DESIGNERS, AND PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS.