Requires UH general counsel to advise clients on how to avoid future claims and request clients to take remedial action. Includes a reporting requirement to the Legislature. Clarifies that UH's immunity from suit under the 11^th Amendment was not abrogated by Act 115, SLH 1998. Specifies that the settlements of claims and judgments against the university may be payable from the moneys appropriated by the legislature. (SB1207 HD1)

A BILL FOR AN ACT

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

"§304-   Claims against the State; report to the legislature. (a) No later than October 1^st of each year, the University of Hawaii general counsel shall advise its clients on how to avoid future claims and shall 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, the 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:

To the extent it requires the disclosure of privileged communication, information, or legal work product, the disclosure of information required by this subsection 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."

SECTION 2. Section 304-6, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(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. 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.

(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] the liability 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]."

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.