SB1603 HD2

THE SENATE	S.B. NO.	1603
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII		H.D. 2

A BILL FOR AN ACT

relating to liability.

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

SECTION 1. The legislature finds that the limitations on state and county liability have proven to be beneficial to the state and county governments, as well as the public. The liability protections have reduced the exposure of the state and county governments to substantial damages and, as a result, have allowed the state and county governments to keep recreational areas and public beach parks with potentially dangerous conditions open to the public. The legislature further finds that state and county compliance with the statutorily required public warning of dangerous conditions at recreational areas and public beach parks has contributed to an improvement in public safety in these areas, which justifies making the current liability exemptions for state and county governments relating to recreational areas and public beach parks and actions of county lifeguards permanent.

Part I

SECTION 2. The purpose of part I of this Act is to make permanent or to extend certain liability protections for state and county governments.

SECTION 3. Act 190, Session Laws of Hawaii 1996, as amended by Act 101, Session Laws of Hawaii 1999, as amended by Act 170, Session Laws of Hawaii 2002, is amended by amending section 7 to read as follows:

"SECTION 7. This Act shall take effect on July 1, 1996[~~; provided that this Act shall be repealed on June 30, 2007~~]."

SECTION 4. Act 170, Session Laws of Hawaii 2002, is amended by amending section 5 to read as follows:

"SECTION 5. This Act shall take effect upon its approval[~~; provided that section 1 of this Act shall be repealed on June 30, 2007~~]."

SECTION 5. Act 82, Session Laws of Hawaii 2003, is amended by amending section 8 to read as follows;

"SECTION 8. This Act shall take affect on July 1, 2003, and shall be repealed on June 30, [~~2008.~~] 2010."

PART II

SECTION 6. The purpose of part II of this Act is to allow the State to indemnify the counties, under certain circumstances.

SECTION 7. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- Indemnification of county agencies. (a) To receive county aid, assistance, support, benefits, services, and interests in or rights to use county property, a state agency may agree in writing to an indemnity provision by which the State agrees to indemnify, defend, and hold harmless a county agency, its officers, agents, and employees when:

(1) The governor approves the State's proposed indemnification; and

(2) The comptroller, pursuant to section 41D-8.5, has obtained an insurance policy or policies in an amount sufficient to cover the liability of the State that reasonably may be anticipated to arise under the indemnity provision, or has determined that it is not in the best interest of the State to obtain insurance.

(b) An indemnity provision not in strict compliance with

this section shall not give rise to a claim against the State

under chapter 661 or otherwise waive the State's sovereign

immunity."

SECTION 8. Section 41D-8.5, Hawaii Revised Statutes, is amended to read as follows:

"§41D-8.5 Insurance for indemnification. The comptroller may:

(1) Obtain sufficient loss insurance to cover the liability of the State that may arise from indemnity provisions agreed to pursuant to section 29-15.5; [~~and~~]

(2) Obtain sufficient loss insurance to indemnify, defend, and hold harmless a county providing assistance, services, rights, or permission to use county property to a state agency under an indemnity agreement provision pursuant to section 46- ; and

(3) Obtain appropriate and sufficient reinsurance to cover the liability of a captive insurance company established pursuant to section 41D-2."

PART III

SECTION 9. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval, provided that section 2 and section 3 of this Act shall take effect on June 29, 2007.