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Motor Carrier Indemnity Bill Heading to Governor - Johnson's HB 366


Senate Passes Johnson’s HB 366 – offers fairness to AK businesses in contracts

Tuesday, April 13, 2010, Juneau, Alaska – Legislation bringing fairness to motor carrier contracting is one step closer to becoming law. The Alaska State Senate today unanimously passed House Bill 366. The House passed the bill March 26House Resources Committee Co-Chair Craig Johnson, R-Anchorage, sponsored the bill.

“We’re bringing a measure of fairness to indemnity clauses in contracting – holding the responsible person responsible,” Johnson said. “HB 366 means businesses won’t be able to contract away their responsibility if both parties are equally accountable for an accident or other negligent or intentional omissions. The bill promotes fairness and protects our small businesses and contractors.”

HB 366 amends state statute 45.45.900, adding a new subsection prohibiting indemnification between motor carriers, such as fuel trucks, from entering into contracts with businesses containing “hold harmless” clauses and vice-a-versa. The bill also sets out standards for classifying motor carriers and shippers.

An indemnity clause is typically used for protection and security against damage or loss, where one party protects against liabilities or penalties incurred by carrying out the contract.

HB 366 now heads to the governor for signature.

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