WeVote
Log In

Bill

Bill

LD 1761

An Act To Prohibit Indemnification Agreements

132nd Legislature (2025-2026) Introduced by Josh Morris

LD 1761 - An Act To Prohibit Indemnification Agreements OverviewBill Number: LD 1761 Title: An Act To Prohibit Indemnification AgreementsStatus: Carried over, in the same posture,

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
#contracts #indemnification #insurancepractices
0
WeVote Research Nonpartisan
Bill Summary · LD 1761

LD 1761 - An Act To Prohibit Indemnification Agreements

Overview

Bill Number: LD 1761
Title: An Act To Prohibit Indemnification Agreements
Status: Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
Introduced: April 22, 2025

Purpose and Intent

The purpose of LD 1761 is to prohibit the use of indemnification agreements in certain contracts. Indemnification agreements are clauses that require one party to compensate another party for any damages, liabilities, or losses incurred. The bill aims to protect consumers and small businesses from being held liable for issues outside of their control when entering into contracts.

Key Provisions

  • Prohibits the inclusion of indemnification agreements in consumer contracts and small business contracts under a certain revenue threshold
  • Defines "consumer contract" as an agreement between a consumer and a business for the provision of goods or services
  • Defines "small business contract" as an agreement between a business with less than $5 million in annual revenue and another business
  • Allows for exceptions where indemnification is necessary to allocate risk appropriately, such as in commercial leases or professional service agreements
  • Provides for enforcement by the state Attorney General and allows for civil penalties against businesses that violate the prohibition

Affected Parties and Impacts

  • Consumers and small businesses would be protected from being held liable for issues beyond their control when entering into contracts
  • Larger businesses would be restricted in their ability to require indemnification in contracts with consumers and small firms
  • The prohibition could impact the risk allocation and pricing of certain types of contracts, potentially increasing costs for consumers and small firms in some cases

Procedural and Timeline Considerations

LD 1761 was introduced in the 131st Maine Legislature and carried over to the 132nd Legislature for further consideration. The bill is currently in limbo, awaiting potential action in a future legislative session. If taken up again, it would need to go through the full committee process, floor votes in both chambers, and potential reconciliation between the House and Senate before being sent to the Governor for signature or veto.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.