NY State Senate Bill 2015-S4173A

Senate Bill S4173A

Signed By Governor

2015-2016 Legislative Session

Proscribes indemnity agreements in motor carrier transportation contracts

download bill text pdf

Archive: Last Bill Status Via A7307 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 04, 2016	signed chap.405
Oct 26, 2016	delivered to governor
Jun 14, 2016	returned to assembly passed senate 3rd reading cal.1105 substituted for s4173a
Jun 14, 2016	substituted by a7307
Jun 01, 2016	advanced to third reading
May 25, 2016	2nd report cal.
May 24, 2016	1st report cal.1105
Jan 06, 2016	referred to transportation
Jun 12, 2015	print number 4173a
Jun 12, 2015	amend (t) and recommit to transportation
Mar 05, 2015	referred to transportation

Votes

- Jun 14, 2016 - Floor Vote
  A7307
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 14, 2016
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (2)
      
      Diaz
      
      Parker
  May 24, 2016 - Transportation Committee Vote
  S4173A
  
  15
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Transportation Committee Vote: May 24, 2016
      
      aye (15)
      
      Avella
      
      Dilan
      
      Gallivan
      
      Kaminsky
      
      Kennedy
      
      Larkin
      
      Marcellino
      
      Martins
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Stavisky
      
      Valesky
      
      Young
      
      aye wr (2)
      
      O'Mara
      
      Squadron
      
      excused (2)
      
      Diaz
      
      Nozzolio

Bill Amendments

Original

A (Active)

2015-S4173 - Details

See Assembly Version of this Bill:: A7307
Law Section:: General Business Law
Laws Affected:: Add §398-e, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4843, A8254
2013-2014: S1087, A3673

2015-S4173 - Summary

Proscribes indemnity agreements in motor carrier transportation contracts.

2015-S4173 - Sponsor Memo

                                BILL NUMBER:S4173

TITLE OF BILL:

An act to amend the transportation law, in relation to proscribing
indemnity agreements in motor carrier transportation contracts

PURPOSE:

Article 8 of the Transportation Law is amended by adding Section 182,
this section will prohibit the use of indemnification clauses in
contracts between shippers and common earners.

SUMMARY OF PROVISIONS:

Section 182(1)(a) defines "motor carrier transportation contract.
Section 182(1)(b) defines "promisee".  Section 182(2) makes any
contract that purports to indemnify, defend or hold harmless, or has
the effect of indemnifying, defending or holding harmless, the
promisee from or against any liability for loss or damage resulting
from the negligence or intentional acts or omissions of the promisee;
is against the public policy of this state and is void and
unenforceable.

JUSTIFICATION:

Current law does not prohibit a shipper from including indemnification
language in the contract between the shipper and motor carrier. The
indemnification absolves the shipper of all liability for damage to
goods regardless of fault. For example, if a shipment of produce is
damaged in the warehouse because it was kept there too long, it is the
responsibility of trucking company because of the indemnification
provision in the contract.

Because indemnification language is commonly included in contracts,
motor carriers have no choice but to accept the terms. Twenty-five
states (thirteen of them in the past two years) have passed similar
legislation to address this growing problem.

This legislation will not limit anyone's ability to collect for
damaged goods but will simply hold the responsible party liable.

LEGISLATIVE HISTORY:

S4843/A8254 of 2011-12,
S1087/A3673 of 2013-14

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

2015-S4173 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4173

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              March 5, 2015
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN ACT to amend the  transportation  law,  in  relation  to  proscribing
  indemnity agreements in motor carrier transportation contracts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The transportation law is amended by adding a  new  section
182 to read as follows:
  S  182. INDEMNITY PROVISION IN MOTOR CARRIER TRANSPORTATION CONTRACTS.
1. FOR THE PURPOSES OF THIS SECTION:
  (A) "MOTOR CARRIER TRANSPORTATION CONTRACT" MEANS A  CONTRACT,  AGREE-
MENT OR UNDERSTANDING COVERING:
  (I)  THE  TRANSPORTATION  OF  PROPERTY FOR COMPENSATION OR HIRE BY THE
MOTOR CARRIER;
  (II) ENTRANCE ON PROPERTY BY THE MOTOR  CARRIER  FOR  THE  PURPOSE  OF
LOADING, UNLOADING OR TRANSPORTING PROPERTY FOR COMPENSATION OR HIRE; OR
  (III)  A  SERVICE INCIDENTAL TO ACTIVITY DESCRIBED IN SUBPARAGRAPH (I)
OR (II) OF THIS PARAGRAPH, INCLUDING, BUT NOT  LIMITED  TO,  STORAGE  OF
PROPERTY.
  (B)  "PROMISEE" MEANS THE PROMISEE AND ANY AGENTS, EMPLOYEES, SERVANTS
OR INDEPENDENT CONTRACTORS WHO ARE DIRECTLY RESPONSIBLE TO THE  PROMISEE
EXCEPT  FOR  MOTOR  CARRIERS  PARTY  TO  A  MOTOR CARRIER TRANSPORTATION
CONTRACT WITH THE PROMISEE AND SUCH MOTOR CARRIER'S  AGENTS,  EMPLOYEES,
SERVANTS  OR  INDEPENDENT CONTRACTORS DIRECTLY RESPONSIBLE TO SUCH MOTOR
CARRIER.
  2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A  PROVISION,
CLAUSE  OR  AGREEMENT  CONTAINED  IN, COLLATERAL TO OR AFFECTING A MOTOR
CARRIER TRANSPORTATION CONTRACT THAT PURPORTS TO  INDEMNIFY,  DEFEND  OR
HOLD  HARMLESS,  OR HAS THE EFFECT OF INDEMNIFYING, DEFENDING OR HOLDING
HARMLESS, THE PROMISEE FROM OR AGAINST ANY LIABILITY FOR LOSS OR  DAMAGE
RESULTING  FROM  THE  NEGLIGENCE OR INTENTIONAL ACTS OR OMISSIONS OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09764-01-5

S. 4173                             2

PROMISEE IS AGAINST THE PUBLIC POLICY OF THIS  STATE  AND  IS  VOID  AND
UNENFORCEABLE.
  3.  "MOTOR  CARRIER  TRANSPORTATION  CONTRACT,"  AS  DEFINED  IN  THIS
SECTION, SHALL NOT INCLUDE THE UNIFORM INTERMODAL INTERCHANGE AND FACIL-
ITIES ACCESS AGREEMENT ADMINISTERED BY  THE  INTERMODAL  ASSOCIATION  OF
NORTH  AMERICA OR OTHER AGREEMENTS PROVIDING FOR THE INTERCHANGE, USE OR
POSSESSION OF INTERMODAL CHASSIS, CONTAINERS OR OTHER INTERMODAL  EQUIP-
MENT.
  S 2. This act shall take effect immediately.

co-Sponsors

2015-S4173A (ACTIVE) - Details

See Assembly Version of this Bill:: A7307
Law Section:: General Business Law
Laws Affected:: Add §398-e, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4843, A8254
2013-2014: S1087, A3673

2015-S4173A (ACTIVE) - Summary

Proscribes indemnity agreements in motor carrier transportation contracts.

2015-S4173A (ACTIVE) - Sponsor Memo

2015-S4173A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4173--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              March 5, 2015
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the general business law,  in  relation  to  proscribing
  indemnity agreements in motor carrier transportation contracts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
398-e to read as follows:
  S  398-E.  INDEMNITY  PROVISION  IN   MOTOR   CARRIER   TRANSPORTATION
CONTRACTS. 1. FOR THE PURPOSES OF THIS SECTION:
  (A)  "MOTOR  CARRIER TRANSPORTATION CONTRACT" MEANS A CONTRACT, AGREE-
MENT OR UNDERSTANDING COVERING:
  (I) THE TRANSPORTATION OF PROPERTY FOR COMPENSATION  OR  HIRE  BY  THE
MOTOR CARRIER;
  (II)  ENTRANCE  ON  PROPERTY  BY  THE MOTOR CARRIER FOR THE PURPOSE OF
LOADING, UNLOADING OR TRANSPORTING PROPERTY FOR COMPENSATION OR HIRE; OR
  (III) A SERVICE INCIDENTAL TO ACTIVITY DESCRIBED IN  SUBPARAGRAPH  (I)
OR  (II)  OF  THIS  PARAGRAPH, INCLUDING, BUT NOT LIMITED TO, STORAGE OF
PROPERTY.
  (B) "PROMISEE" MEANS THE PROMISEE AND ANY AGENTS, EMPLOYEES,  SERVANTS
OR  INDEPENDENT CONTRACTORS WHO ARE DIRECTLY RESPONSIBLE TO THE PROMISEE
EXCEPT FOR MOTOR  CARRIERS  PARTY  TO  A  MOTOR  CARRIER  TRANSPORTATION
CONTRACT  WITH  THE PROMISEE AND SUCH MOTOR CARRIER'S AGENTS, EMPLOYEES,
SERVANTS OR INDEPENDENT CONTRACTORS DIRECTLY RESPONSIBLE TO  SUCH  MOTOR
CARRIER.
  2.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A PROVISION,
CLAUSE OR AGREEMENT CONTAINED IN, COLLATERAL TO  OR  AFFECTING  A  MOTOR
CARRIER  TRANSPORTATION  CONTRACT  THAT PURPORTS TO INDEMNIFY, DEFEND OR
HOLD HARMLESS, OR HAS THE EFFECT OF INDEMNIFYING, DEFENDING  OR  HOLDING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09764-02-5

S. 4173--A                          2

HARMLESS,  THE PROMISEE FROM OR AGAINST ANY LIABILITY FOR LOSS OR DAMAGE
RESULTING FROM THE NEGLIGENCE OR INTENTIONAL ACTS OR  OMISSIONS  OF  THE
PROMISEE  IS  AGAINST  THE  PUBLIC  POLICY OF THIS STATE AND IS VOID AND
UNENFORCEABLE.
  3.  "MOTOR  CARRIER  TRANSPORTATION  CONTRACT,"  AS  DEFINED  IN  THIS
SECTION, SHALL NOT INCLUDE THE UNIFORM INTERMODAL INTERCHANGE AND FACIL-
ITIES ACCESS AGREEMENT ADMINISTERED BY  THE  INTERMODAL  ASSOCIATION  OF
NORTH  AMERICA OR OTHER AGREEMENTS PROVIDING FOR THE INTERCHANGE, USE OR
POSSESSION OF INTERMODAL CHASSIS, CONTAINERS OR OTHER INTERMODAL  EQUIP-
MENT.
  S 2. This act shall take effect immediately.

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