Report Title:

UH; Settlements and Claims

 

Description:

Requires UH general counsel to advise clients on avoidance of future claims, request client remedial action, and report to the Legislature on these activities. Provides that liability incurred in suits against UH shall be a liability of the State. (SB1207 HD2)

 

THE SENATE

S.B. NO.

1207

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

RELATING TO THE UNIVERSITY OF HAWAII.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 304, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§304-   Claims against the State; report to the legislature. (a) No later than October 1st of each year, the University of Hawaii general counsel shall advise its clients on how to avoid future claims and request clients to take corrective action to eliminate or mitigate those factors identified by the university general counsel as contributing to the University of Hawaii's liability or settlement of a claim. Based upon this advice, clients shall develop new policies or modify existing practices to avoid repetition of similar claims.

(b) The University of Hawaii shall submit a confidential report to the speaker of the house of representatives, the president of the senate, and the chairs of the house and senate judiciary committees no later than twenty days prior to the convening of each regular legislative session. The report shall:

(1) Describe the claims and the attendant circumstances thereof and include the advice for corrective action rendered to the client;

(2) Describe remedial measures that the University of Hawaii will take or that are recommended that the legislature take if the University of Hawaii does not take corrective action within a reasonable period of time; and

(3) Be deemed a confidential and privileged communication to the legislature and shall not be disclosed as provided by sections 92F-13 and 92F-19(b).

To the extent that the disclosure required by this subsection requires the disclosure of privileged communication, information, or legal work product, such disclosure shall not constitute waiver of the attorney-client privilege or any other privilege that may apply, shall not be subject to discovery, and shall not be used for any purpose in any proceeding involving the University of Hawaii.

§304-   Suits. The university may sue and be sued in its corporate name; however, it shall be subject to suit only in the manner provided for suits against the State, and any liability incurred by the university in such suit shall be a liability of the State. For the purposes of this provision, members of the board of regents are "employees of the State" as the term is used in chapter 662."

SECTION 2. Section 304-6, Hawaii Revised Statutes, is repealed.

["§304-6 Suits. (a) The university may sue and be sued in its corporate name. Notwithstanding any other law to the contrary, all claims arising out of the acts or omissions of the university or the members of its board of regents, its officers, or its employees, including claims permitted against the State under chapter 661, and claims for torts permitted against the State under chapter 662, may be brought only pursuant to this section, and only against the university. However, the university shall be subject to suit only in the manner provided for suits against the State, including section 661-11, and any liability incurred by the university in such a suit shall be solely the liability of the university, shall be payable solely from the moneys and property of the university, and shall not constitute a general obligation of the State, or be secured directly or indirectly by the full faith and credit of the State or the general credit of the State, or by any revenue or taxes of the State. All defenses available to the State, as well as all limitations on actions against the State, shall be applicable to the university.

(b) The board of regents, upon the advice of its attorney, may arbitrate, compromise, or settle any claim, action, or suit brought against the university pursuant to this section. Any claim compromised or settled under this subsection shall be payable solely from the moneys and property of the university and shall not constitute a general obligation of the State, or be secured directly or indirectly by the full faith and credit of the State or the general credit of the State, or by any revenue or taxes of the State. Nothing in this subsection precludes the board of regents from requesting and securing legislative appropriations to fund the settlement of any such claim or judgment against the university, its regents, officers, employees, or agents.

(c) Rights and remedies conferred by this section shall be exclusive and shall not be construed to authorize any other claim, suit, or action against the State. In addition, a judgment, compromise, or settlement in an action brought against the university under this section shall constitute a complete bar to any action brought by the claimant, by reason of the same subject matter, against the State or an officer or employee of the university.

(d) The university may purchase insurance to cover any claims anticipated under this section."]

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.