1 | 1 | | LRB-4405/1 |
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2 | 2 | | JPC:cjs |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 SENATE BILL 491 |
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5 | 5 | | October 16, 2023 - Introduced by Senators WIMBERGER, MARKLEIN, PFAFF and |
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6 | 6 | | SPREITZER, cosponsored by Representatives DALLMAN, STEFFEN, ROZAR, |
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7 | 7 | | BRANDTJEN, CONSIDINE, DUCHOW, JOERS, NOVAK, SCHMIDT and STUBBS. Referred |
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8 | 8 | | to Committee on Transportation and Local Government. |
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9 | 9 | | AN ACT to create 443.20 of the statutes; relating to: prohibiting certain |
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10 | 10 | | indemnification provisions in contracts relating to design professional services. |
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11 | 11 | | Analysis by the Legislative Reference Bureau |
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12 | 12 | | This bill prohibits the enforcement of any provision in a contract between the |
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13 | 13 | | state or a political subdivision and a private entity that is engaged in design |
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14 | 14 | | professional services that requires the private entity to indemnify or defend the state |
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15 | 15 | | or a political subdivision. Under the bill, design professional services is defined to |
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16 | 16 | | mean any service performed by a design professional and services performed by |
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17 | 17 | | others that arise out of or are related to services performed by a design professional. |
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18 | 18 | | The term “design professional” includes architects, engineers-in-training, |
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19 | 19 | | landscape architects, professional engineers, professional land surveyors, and |
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20 | 20 | | Wisconsin registered interior designers. The bill excepts from the prohibitions |
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21 | 21 | | described above any provision in which a private entity's indemnification obligation |
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22 | 22 | | is limited to losses proximately caused by the negligent performance of design |
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23 | 23 | | professional services by the private entity and does not exceed the proportion of a loss |
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24 | 24 | | caused by the negligent performance and any provision required to be included in the |
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25 | 25 | | state's or a political subdivision's contracts with the federal government. |
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26 | 26 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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27 | 27 | | enact as follows: |
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28 | 28 | | SECTION 1. 443.20 of the statutes is created to read: |
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31 | 31 | | 3 - 2 -2023 - 2024 Legislature LRB-4405/1 |
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32 | 32 | | JPC:cjs |
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33 | 33 | | SECTION 1 SENATE BILL 491 |
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34 | 34 | | 443.20 Indemnification in civil contracts. (1) In this section: |
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35 | 35 | | (a) “Civil contract” means any contractual agreement between the state or a |
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36 | 36 | | political subdivision and a private entity. |
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37 | 37 | | (b) “Design professional” means any of the following: |
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38 | 38 | | 1. Architect. |
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39 | 39 | | 2. Engineer-in-training. |
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40 | 40 | | 3. Landscape architect. |
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41 | 41 | | 4. Professional engineer. |
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42 | 42 | | 5. Professional land surveyor |
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43 | 43 | | 6. Wisconsin registered interior designer. |
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44 | 44 | | (c) “Design professional services” means any service performed by a design |
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45 | 45 | | professional and services performed by others that arise out of or are related to |
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46 | 46 | | services performed by a design professional, including the following: |
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47 | 47 | | 1. Studies. |
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48 | 48 | | 2. Planning. |
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49 | 49 | | 3. Surveys. |
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50 | 50 | | 4. Project management. |
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51 | 51 | | 5. Traffic management. |
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52 | 52 | | 6. Preparatory work. |
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53 | 53 | | (2) Notwithstanding s. 895.447, any provision of a civil contract containing any |
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54 | 54 | | of the following, explicitly or in effect, is void and unenforceable: |
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55 | 55 | | (a) A provision requiring a private entity performing design professional |
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56 | 56 | | services to indemnify the state or any political subdivision, except as provided in sub. |
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57 | 57 | | (3) (a). |
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81 | 81 | | 24 - 3 -2023 - 2024 Legislature |
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82 | 82 | | LRB-4405/1 |
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83 | 83 | | JPC:cjs |
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84 | 84 | | SECTION 1 |
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85 | 85 | | SENATE BILL 491 |
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86 | 86 | | (b) A provision requiring a private entity performing design professional |
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87 | 87 | | services to defend the state or any political subdivision in any legal action. |
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88 | 88 | | (3) The limitations under sub. (2) (a) do not apply to any of the following: |
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89 | 89 | | (a) Indemnification provisions in any civil contract in which a private entity's |
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90 | 90 | | indemnification obligation is limited to losses proximately caused by the negligent |
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91 | 91 | | performance of design professional services by the private entity and does not exceed |
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92 | 92 | | the proportion of a loss caused by the negligent performance. |
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93 | 93 | | (b) Provisions required to be included in the state's or a political subdivision's |
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94 | 94 | | contracts with the federal government to the extent the provisions conflict with sub. |
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95 | 95 | | (2). |
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96 | 96 | | (4) Nothing in this section may be construed as a waiver of any immunity or |
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97 | 97 | | other limitation of liability described in this chapter or ch. 895. |
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98 | 98 | | SECTION 2.0Initial applicability. |
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99 | 99 | | (1) This act first applies to a civil contract, as defined under s. 443.20 (1) (a), |
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100 | 100 | | entered into on the effective date of this subsection. |
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101 | 101 | | (END) |
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