07 HB136/SCSFA/1
SENATE
SUBSTITUTE TO HB 136
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 13-8-2 of the Official Code of Georgia Annotated, relating to
contracts contravening public policy generally, so as to provide that any
contract which imposes certain taxes or fees on an insurance company for certain
services shall be deemed to be contrary to public policy and unenforceable; to
provide that any provision of a contract of insurance which provides for
indemnification against liability for damages arising out of bodily injury to
persons, death, or damage to property caused by an indemnitee or its, his, or
her officers, agents, or employees in connection with a contract or agreement
relative to the construction, alteration, repair, or maintenance of a building
structure, appurtenances, and appliances is against public policy, void, and
unenforceable; to provide for related matters; to provide for applicability; to
provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 13-8-2 of the Official Code of Georgia Annotated, relating to contracts
contravening public policy generally, is amended as follows:
"(a)
A contract which is against the policy of the law cannot be enforced. Contracts
deemed contrary to public policy include but are not limited to:
(1)
Contracts tending to corrupt legislation or the judiciary;
(2)
Contracts in general restraint of trade, as distinguished from contracts in
partial restraint of trade as provided for in Code Section
13-8-2.1;
(3)
Contracts to evade or oppose the revenue laws of another country;
(4)
Wagering contracts;
(5)
Contracts of maintenance or
champerty;
or
(6)
Contracts, express or implied, which impose additional taxes or any other fees
of any kind on an insurance company for any services provided by a county or
municipal corporation to such insurance company´s insured which is in
addition to the tax authorized by subsection (a) of Code Section
33-8-8.2.
(b)
A covenant, promise, agreement, or understanding in or in connection with or
collateral to a contract or agreement relative to the construction, alteration,
repair, or maintenance of a building structure, appurtenances, and appliances,
including moving, demolition, and excavating connected therewith, purporting to
require that
one party to such contract or agreement
shall
indemnify,
or
hold harmless,
insure, or defend the other party to the contract or other
named
the
promisee
indemnitee,
including its, his, or her officers, agents, or
employees, against liability
or
claims for
damages,
losses, or expenses, including attorney
fees, arising out of bodily injury to
persons,
death, or damage to property caused by or
resulting from the sole negligence of the
promisee
indemnitee,
or
its,
his, or her
officers,
agents,
or employees,
or
indemnitee is against public policy and
is
void and
unenforceable,
provided that this subsection shall not affect the validity of any insurance
contract, workers´ compensation, or agreement issued by an admitted
insurer.
Any provision
in an insurance contract issued pursuant to any such covenant, promise,
agreement, or understanding to insure against any such liability or claims is,
to that extent, against public policy and void and unenforceable. This
subsection shall not affect any obligation under workers´ compensation or
coverage or insurance specifically relating to workers´ compensation, nor
shall this subsection apply to any requirement that one party to the contract
purchase a project specific insurance policy, including an owner’s or
contractor’s protective insurance, builder’s risk insurance,
installation coverage, project management protective liability insurance, an
owner controlled insurance policy, or a contractor controlled insurance
policy."
SECTION
2.
This
Act shall not be applied to impair any obligation of contract or agreement
entered into prior to the effective date of this Act, but this Act shall apply
to any contract entered into, extended, or renewed on or after such
date.
SECTION
3.
This
Act shall become effective on July 1, 2007.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.