{"id":233,"date":"2022-03-18T10:30:57","date_gmt":"2022-03-18T10:30:57","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/statutes-california-laws\/?page_id=233"},"modified":"2022-05-20T23:45:48","modified_gmt":"2022-05-20T23:45:48","slug":"senate-bill-496","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/senate-bill-496\/","title":{"rendered":"Senate Bill 496"},"content":{"rendered":"<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Currrent as of February 4, 2022<\/p>\n<\/div><\/section>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l0wa6c41-31c5eec6a1317983f370b69945fdb81b\">\n#top .av_textblock_section.av-l0wa6c41-31c5eec6a1317983f370b69945fdb81b .avia_textblock{\nfont-size:19px;\n}\n<\/style>\n<section  class='av_textblock_section av-l0wa6c41-31c5eec6a1317983f370b69945fdb81b '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h1>Senate Bill No. 496<\/h1>\n<h2>CHAPTER 8<\/h2>\n<hr \/>\n<p style=\"text-align: center\">An act to amend Section 2782.8 of the Civil Code, relating to indemnity.<\/p>\n<p style=\"text-align: center\">[\u00a0Approved by\u00a0Governor\u00a0\u00a0April\u00a028,\u00a02017.\u00a0Filed with\u00a0Secretary of State\u00a0\u00a0April\u00a028,\u00a02017.\u00a0]<\/p>\n<p style=\"text-align: center\">LEGISLATIVE COUNSEL&#8217;S DIGEST<\/p>\n<p>SB 496, Cannella. Indemnity: design professionals.<\/p>\n<p>Existing law provides, for all contracts, and amendments to contracts, entered into on or after January 1, 2007, with a public agency, as defined, for design professional services, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting these contracts, that purport to indemnify, including the cost to defend, the public agency by a design professional against liability for claims against the public agency, are unenforceable, except for claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional.<\/p>\n<p>Existing law provides, with respect to contracts and amendments to contracts entered into on or after January 1, 2011, with a public agency, as defined, for design professional services, that all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting these contracts or amendments to contracts that purport to require the design professional to defend the public agency under an indemnity agreement, including the duty and the cost to defend, are unenforceable, except for claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. Existing law provides that all contracts and all solicitation documents between a public agency and a design professional are deemed to incorporate these provisions by reference.<\/p>\n<p>This bill would instead make these provisions applicable to all contracts for design professional services entered into on or after January 1, 2018. The bill would prohibit the cost to defend charged to the design professional from exceeding the design professional\u2019s proportionate percentage of fault, except that in the event that one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the bill would require the design professional to meet and confer with other parties regarding unpaid defense costs. The bill would also provide for certain exemptions to these provisions.<\/p>\n<p>Vote:\u00a0majority\u00a0\u00a0\u00a0Appropriation:\u00a0no\u00a0\u00a0\u00a0Fiscal Committee:\u00a0no\u00a0\u00a0\u00a0Local Program:\u00a0no<\/p>\n<p>THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:<\/p>\n<hr \/>\n<p><strong>SECTION 1.<\/strong><\/p>\n<p>Section 2782.8 of the Civil Code is amended to read:<\/p>\n<p><strong>2782.8.<\/strong><\/p>\n<p>(a)\u00a0For all contracts, and amendments thereto, entered into on or after January 1, 2018, for design professional services, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any such contract, and amendments thereto, that purport to indemnify, including the duty and the cost to defend, the indemnitee by a design professional against liability for claims against the indemnitee, are unenforceable, except to the extent that the claims against the indemnitee arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. In no event shall the cost to defend charged to the design professional exceed the design professional\u2019s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the design professional shall meet and confer with other parties regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in this section. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties.<\/p>\n<p>(b)\u00a0All contracts and all solicitation documents, including requests for proposal, invitations for bid, and other solicitation documents for design professional services are deemed to incorporate by reference the provisions of this section.<\/p>\n<p>(c)\u00a0For purposes of this section, \u201cdesign professional\u201d includes all of the following:<\/p>\n<p>(1)\u00a0An individual licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, and a business entity offering architectural services in accordance with that chapter.<\/p>\n<p>(2)\u00a0An individual licensed as a landscape architect pursuant to Chapter 3.5 (commencing with Section 5615) of Division 3 of the Business and Professions Code, and a business entity offering landscape architectural services in accordance with that chapter.<\/p>\n<p>(3)\u00a0An individual registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, and a business entity offering professional engineering services in accordance with that chapter.<\/p>\n<p>(4)\u00a0An individual licensed as a professional land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code, and a business entity offering professional land surveying services in accordance with that chapter.<\/p>\n<p>(d)\u00a0This section shall apply only to a professional service contract, or any amendment thereto, entered into on or after January 1, 2018.<\/p>\n<p>(e)\u00a0The provisions of this section pertaining to the duty and cost to defend shall not apply to either of the following:<\/p>\n<p>(1)\u00a0Any contract for design professional services, or amendments thereto, where a project-specific general liability policy insures all project participants for general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis.<\/p>\n<p>(2)\u00a0A design professional who is a party to a written design-build joint venture agreement.<\/p>\n<p>(f)\u00a0Nothing in this section shall abrogate the provisions of Section 1104 of the Public Contract Code.<\/p>\n<p>(g)\u00a0Indemnitee, for purposes of this section, does not include any agency of the state.<\/p>\n<hr \/>\n<p>Senate Bill 496<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":2019,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-233","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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