STAND. COM. REP. NO. 68

Honolulu, Hawaii

, 2005

RE: S.B. No. 449

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Intergovernmental Affairs and Transportation and Government Operations, to which was referred S.B. No. 449 entitled:

"A BILL FOR AN ACT RELATING TO COUNTIES,"

beg leave to report as follows:

The purpose of this measure is to allow the State to enter into an indemnification agreement with a county.

Your Committees received testimony in support of this measure from the Honolulu Corporation Counsel, Hawaii Corporation Counsel, Kauai County Attorney, and the Council Chair of the Kauai County Council.

The intent of this measure is to limit the liability of the counties for liability exposure arising from acts or omissions performed by the State. The situation arises when the State uses a county facility.

Your Committees have amended this measure on the recommendation of the county corporation counsels as follows:

(1) Clarifying the substance of a discretionary indemnity agreement to defend and indemnify;

(2) Providing for a mandatory indemnity agreement to defend and indemnify in situations wherein the State receives county assistance, services, or the like;

(3) Deleting the three conditions for an indemnity; and

(4) Adding a savings clause to session law material and deleting the savings clause in the statute, as the preferred drafting style.

As affirmed by the records of votes of the members of your Committees on Intergovernmental Affairs and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 449, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 449, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committees on Intergovernmental Affairs and Transportation and Government Operations,

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LORRAINE R. INOUYE, Chair

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DAVID Y. IGE, Chair