HB 1306 — Construction Dispute Resolution Agreements; declare void if held outside the state.

HB1306 (As SentPassed tothe Governor)House) - 2018 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Representative Bell (21st) House Bill 1306 (As SentPassed tothe Governor)House) AN ACT TO PROVIDECREATE THATNEW CERTAINSECTION CONSTRUCTION11-11-21, AGREEMENTSMISSISSIPPI CODE OF 1972, TO PROVIDE THAT REQUIRECONSTRUCTION DISPUTE RESOLUTION OUTSIDEAGREEMENTS THETHAT STATEREQUIRE ORRESOLUTION RESTRICTOUTSIDE THE PARTIES'STATE CHOICE OF LAW SHALL BE VOID;

     SECTION 1.  (1) The Afollowing provisionshall inbe anycodified contract,as subcontract,Section or11-11-21, purchaseMississippi orderCode for the improvement of real1972: property in this state, or to provide materials therefor, is void and against public policy if it makes the contract, subcontract, or purchase order subject to the laws of another state, or provides that the exclusive forum for any litigation, arbitration, or other dispute resolution process be located in another state.

     (2) 11-11-21.  The(a)  provisionsWith regard to any provision contained within any written or oral contract or agreement (i) relative to the design, construction, alteration, repair, demolition or maintenance of thisany sectionbuilding, applystructure, onlyhighway, appurtenance, appliance, or other improvements to contracts,real agreementsproperty, situated within the boundaries of the State of Mississippi, or (ii) relative to goods or services to be provided within the boundaries of the State of Mississippi, between or among any individuals, persons or entities that require dispute resolution, whether through arbitration, mediation or litigation, or any other available means, to be held outside of the territorial boundaries of the State of Mississippi or governed by any other laws other than the laws of the State of Mississippi, in all instances, any such provision shall be and purchaseis orders:invalid, null, void, unenforceable and repugnant to the public policy of the State of Mississippi.       (b)  The provisions of subsection (a), hereof, shall be mandatory, and may not be otherwise waived or altered by agreement, written or oral.

              (a) (c)  EnteredThe intoprovisions of this section shall become effective for all contracts, as described in this section, entered on or after Julythe 1,passage 2018;hereof.

          (b)  Only if at least one (1) of the parties is a Mississippi resident;

and           (c)  Only if entered into between any two (2) or more of the following persons and no others:  the owner of the real property improved or to be improved, a contractor, subcontractor, materialman or design professional.  As used in this section, "contractor", "subcontractor", "materialman" and "design professional" shall have the meanings ascribed in Section 85-7-401.

     (3)  For purposes of this section, "Mississippi resident" means any natural person domiciled in Mississippi or any business entity having a principal place of business in Mississippi.