Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Education and Judiciary, to which was referred S.B. No. 2843 entitled:

beg leave to report as follows:

The purpose of this measure is to provide authority for the University of Hawaii to enter into indemnification agreements when such agreements are necessary as a condition for accepting research or training grants or other contractual benefits.

Your Committees received testimony in support of this measure from the Dean of the School of Ocean and Earth Science and Technology of the University of Hawaii at Manoa.

Your Committees find that research sponsors often require that the University of Hawaii be prepared to indemnify the sponsoring agency and its officers, employees, and agents. This requirement leads to protracted negotiations and in some cases prevents the University from accepting certain awards resulting in missed opportunities.

Therefore, your Committees support this measure, which will provide a consistent statutory standard through which the University may enter into indemnification agreements, while at the same time ensuring protection to the State and University through proper due diligence and the purchase of insurance when appropriate.

Upon further consideration, your Committees have amended this measure by requiring the University of Hawaii to report to the legislature on claims, if any, which have arisen or may arise.

As affirmed by the records of votes of the members of your Committees on Education and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2843, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2843, S.D. 1, and be referred to the Committee on Ways and Means.