Report Title:

Procurement; Indemnification; Governmental Body

Description:

Prohibits provisions in certain governmental procurement contracts that require contractors to defend the governmental body; allows such contracts to require a contractor to indemnify and hold harmless the governmental body. (HB2594 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2594

TWENTY-THIRD LEGISLATURE, 2006

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to procurement.

 

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

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:

"§103D-   Defense of a governmental body. (a) If a governmental body enters into a contract with a person for professional services to be performed by one or more construction design professionals as defined in section 386-1, the contract shall not require the person to defend the governmental body, its officers, employees, or agents against any liability, damage, or loss, in any claim, action, or proceeding.

(b) Notwithstanding subsection (a), the contract may require a person to indemnify and hold harmless the governmental body, and its officers and employees, from and against any liability, loss, damage, cost, and expense, including all reasonable attorneys' fees, and all claims, suits, and demands therefor, arising out of or resulting from the negligent and other wrongful acts, errors, or omissions of the person, the person's employees, officers, agents, or subcontractors in the performance of their professional services.

(c) Any provision of a contract between a governmental body and a person in violation of subsection (a) is contrary to the public policy of this State and is void.

(d) As used in this section, "person" means any person, partnership, corporation, or other entity conducting business in the state."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2096.