STAND. COM. REP. NO. 918

Honolulu, Hawaii

RE:    H.B. No. 1168

       H.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Transportation, International and Intergovernmental Affairs, to which was referred H.B. No. 1168, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AIRPORTS,"

begs leave to report as follows:

     The purpose of this measure is to clarify the authority of the Director of Transportation to adopt rules to require users or occupiers of airport land, buildings, or facilities for business or commercial purposes to defend, indemnify, and hold harmless the State against all claims, suits, and demands arising out of or resulting from the use or occupation.

     Your Committee received testimony in support of this measure from the Department of Transportation.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that the Department of Transportation, to the extent possible, has required a duty on tenants and permittees to defend, indemnify, and hold harmless the

State through lease agreements or revocable permits.  However, there are other permittees who conduct commercial activities at airports facilities who do not have a lease agreement or

a revocable permit.  Although the Department of Transportation has adopted an administrative rule to impose on such permittees the duty to defend, indemnify, and hold harmless the State, the

Hawaii, 111 Haw. 144 (2006), Supreme court has held in the case of Haole v. State of Hawaii that the Department did not have statutory to adopt such an administrative rule.  This measure remedies the situation by granting the Department express statutory authority to adopt such rules, thus providing appropriate protections to the State.

     As affirmed by the record of votes of the members of your Committee on Transportation, International and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1168, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Government Operations.

Respectfully submitted on behalf of the members of the Committee on Transportation, International and Intergovernmental Affairs,

____________________________

J. KALANI ENGLISH, Chair