ASCA legislation clears Michigan House

ASCA legislation clears Michigan House

HB-5230, which would limit hold-harmless agreements, now heads to the state senate for approval.

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May 25, 2016

ASCA model legislation to limit indemnity agreements in snow and ice management contracts passed the Michigan House of Representatives on Wednesday with a core vote of 101-8.

House Bill 5230, which was sponosred by Michigan State Rep. Ken Yonker, now heads to the Michigan Senate for approval.

ASCA Exececutive Director Kevin Gilbride says they he and Michigan ASCA members are optimistic the legislation will receive support and passage in the state sentate.

"The ASCA and Michigan ASCA members championed HB-5230 and got it introduced and passed within 8 months," Gilbride says. "We still have a lot of work ahead of us lobbying for support and passage in the senate, but we're confident our efforts will help push this through."

The proposed legislation will eliminate property owners and managers from passing their liability onto a snow contractor. Many contractors sign hold-harmless agreements and indemnification clauses that transfer the property owner’s liability onto them. Many may not even realize they are signing these agreements. The net effect of this legislation will be wide ranging for the professional snow and ice management industry, primarily it will have a favorable impact on insurance rates.