STAND. COM. REP. NO. 656

Honolulu, Hawaii

, 2005

RE: H.B. No. 1362

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1362 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this bill is to provide for fair contracts between the State and persons providing professional services while helping to improve the professional liability insurance climate in Hawaii. Specifically, this bill amends the Procurement Code to:

(1) Prohibit a governmental body from requiring a construction design professional services contractor to indemnify the governmental body for the governmental body's negligence, errors, omissions, recklessness, or intentional misconduct; and

(2) Allow the governmental body to require the contractor to indemnify the State for the person's negligence, errors, or omissions.

Clayton J. Wong & Associates, Inc., and the Coalition of Hawaii Engineering & Architectural Professionals testified in support of this bill. The American Council of Engineering Companies of Hawaii, Fukunaga & Associates, Inc., Masa Fujioka & Associates, and Shigemura, Lau, Sakanashi, Higuchi and Associates, Inc., supported this measure with amendments. The State Procurement Office offered comments.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2020, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1362, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1362, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

____________________________

SYLVIA LUKE, Chair