AB 736

Under current law, a party shipping goods with a motor carrier and the motor

carrier are generally free to agree to the terms under which the motor carrier will

transport the goods and provide related shipping services. Where certain shipping

documents are used, the law includes certain presumptions but these presumptions

may generally be varied by agreement.

This bill prohibits, and renders void and unenforceable, any provision of a

motor carrier transportation contract, or covenant or agreement collateral to or

affecting a motor carrier transportation contract, from indemnifying, holding

harmless, or requiring the motor carrier to provide a defense to the "promisee" or its

employees or affiliates from or against any liability for loss or damage resulting from

the negligence or intentional acts or omissions of the promisee or its employees or

affiliates. A "promisee" is a person, including an individual or a business entity, that

enters into a motor carrier transportation contract with a motor carrier (typically the

shipper of goods). An "affiliate" of the promisee includes agents of the promisee and

independent contractors directly responsible to the promisee. A "motor carrier

transportation contract" means any agreement, regardless of whether it is written,

oral, express, or implied, between a motor carrier and a promisee covering the

transportation of property for hire by the motor carrier; the motor carrier's entrance

on property for the purpose of loading, unloading, or transporting property for hire;

or any service of the motor carrier incidental to either of these activities, including

the storage of property.