Relief of Duplicative Indemnification Requirements Legislation Gets Senate Committee Approval

House Bill 765 – PA Chamber supported legislation that would provide relief to local governments and organizations planning events that involve a state road – moved forward in the Senate last week.

Under current law, organizations applying for a state road use permit are required by PennDOT to indemnify the Commonwealth.  The same regulation states that the host municipality must also indemnify the Commonwealth; however, this provision had historically not been enforced. Recently, organizations planning events have reported that PennDOT has begun to enforce this requirement on municipalities, which are reportedly being advised by their solicitors and insurance carriers to not agree to this indemnification, putting events at risk of cancellation.

In a memo urging the Senate Transportation committee’s support of the legislation, the PA Chamber highlighted the impact on communities throughout the Commonwealth.

“Local chambers of commerce have reported that major outdoor community events are at risk of being cancelled. These are not only major sources of income, but also possibly the first time in many months that a community is able to proceed with an event since so many have been postponed or cancelled.”

The legislation will now go before the full Senate for consideration.


Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.