Chapter 0336 - 532R - H Ver of SB1271

House Engrossed Senate Bill

State of Arizona

Senate

Fifty-third Legislature

Second Regular Session

2018

CHAPTER 336

SENATE BILL 1271

AN ACT

establishing a construction liability apportionment study committee.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Construction liability apportionment study committee; membership; duties; delayed repeal

A. The construction liability apportionment study committee is established consisting of the following members:

1. Three members of the senate who are appointed by the president of the senate, not more than two of whom are members of the same political party. The president of the senate shall designate one of these members to serve as cochairperson of the committee.

2. Three members of the house of representatives who are appointed by the speaker of the house of representatives, not more than two of whom are members of the same political party. The speaker of the house of representatives shall designate one of these members to serve as cochairperson of the committee.

B. Committee members are not eligible to receive compensation, but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2, Arizona Revised Statutes.

C. The study committee shall research and make recommendations for the apportionment of liability in the construction industry, including:

1. The use of an indemnity provision in construction contracts.

2. The allocation of liability based on degrees of fault.

3. The assignment of financial responsibility to negligent parties.

4. The opportunity to address and remedy alleged construction defects prior to litigation.

5. The frequency of construction defect litigation.

6. The affordability of insurance costs associated with construction claims.

D. The study committee may hold hearings, conduct fact-finding tours and take testimony from witnesses who may assist the study committee in fulfilling its responsibilities. All hearings of the study committee shall be open to the public.

E. The legislature shall provide staff and support services to the study committee.

F. The study committee shall submit a report regarding its findings and recommendations on or before December 15, 2018, to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state.

G. This section is repealed from and after June 30, 2019.