This bill amends existing Louisiana law regarding prohibited provisions in public contracts, specifically addressing liability clauses. It establishes that any provision in a public contract that requires a private contracting party to assume liability for damages resulting from the negligence of parties other than themselves, their employees, or agents is contrary to public policy and thus null and void. This applies to both public contracts and department contracts, with the exception of provisions that name another party as a co-insured or additional beneficiary in an insurance contract.
Additionally, the bill clarifies that these prohibitions do not apply to intrastate intergovernmental contracts or contracts with private providers for the care of individuals in state custody. It also specifies that the provisions do not apply to contracts between public entities and property owners when the contract grants the public entity rights to use the property for specific purposes. The amendments aim to protect public entities from assuming undue liability while ensuring that contracts remain valid and enforceable under the law.
Statutes affected: HB573 Original: 38:2195(B), 48:7(B)
HB573 Engrossed: 38:2195(B), 48:7(B)
HB573 Reengrossed: 38:2195(B), 48:7(B)
HB573 Enrolled: 38:2195(B), 48:7(B)
HB573 Act : 38:2195(B), 48:7(B)