A BILL TO BE ENTITLED
AN ACT to protect the interest of contractors and designers, and particularly small and WMBE entities, from unfair contracting and duty to defend requirements.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 22B‑1 reads as rewritten:
"§ 22B‑1.  Construction indemnity agreements invalid.
(a)	Any promise or agreement in, or in connection with, a contract, promise, or agreement relative to the design, planning, construction, alteration, repair or maintenance of a building, structure, highway, road, appurtenance or appliance, including moving, demolition and excavating connected therewith, purporting to indemnify or hold harmless the promisee, the promisee's independent contractors, agents, employees, or any other person or entity against liability for damages arising out of (i) bodily injury to persons, (ii) damage to property, (iii) economic damages, or (iv) losses or expenses of any type, including attorneys' fees, proximately caused by or resulting from the negligence, in whole or in part, of the promisee, its independent contractors, agents, employees, or any other person or entity is against public policy and is void and unenforceable.
(b)	Any contract, promise or agreement described in subsection (a) of this section may only require that a promisor indemnify or hold harmless any promisee or the promisee's independent contractors, agents, employees or indemnitees against liability for damages arising out of (i) bodily injury to persons, (ii) damage to property, (iii) economic damages, or (iv) losses or expenses of any type, including attorneys' fees, proximately caused by or resulting from the negligence, in whole or in part, of the promisor, its agents or employees.
(c)	In any contract, promise, or agreement described in subsections (a) and (b) of this section relative to design or planning, the obligation to indemnify or hold harmless shall not include an obligation to defend the promisee, the promisee's independent contractors, agents, employees, or any other person or entity. An obligation to defend shall not be imposed by any other terms of the contract, promise, or agreement.
(d)	This section shall not affect an insurance contract, workers' compensation, or any other agreement issued by an insurer."
SECTION 2.  This act becomes effective October 1, 2019, and applies to contracts entered into, amended, or renewed on or after that date.