Bill Text: HI SB265 | 2011 | Regular Session | Introduced

Hawaii Senate Bill 265 (Prior Session Legislation)

Introduced

Bill Title: Public Works Contract; Indemnification

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-24 - (S) Referred to PGM, JDL. [SB265 Detail]

Download: Hawaii-2011-SB265-Introduced.html

THE SENATE	S.B. NO.	265
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

Relating to procurement.

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

SECTION 1. Section 103D-713, Hawaii Revised Statutes, is amended to read as follows:

"[[]§103D-713[]] Defense of a governmental body. (a) No contract of less than $1,000,000 that is entered into on or after July 1, 2007, by any governmental body, and is exclusively for services that may only lawfully be provided by a person licensed under chapter 464, may require the contractor to defend the governmental body, or its officers, employees, or agents, from any liability, damage, loss, or claim, action, or proceeding arising out of the contractor's performance under the contract.

(b) Subsection (a) notwithstanding, the contract may require the contractor providing the services to indemnify and hold harmless the governmental body and its officers, employees, and agents from and against any liability, damage, loss, cost, and expense, including reasonable attorneys' fees, and all claims, suits, and demands therefor arising out of or resulting from the negligent, reckless, intentional, or wrongful acts, errors, or omissions of the contractor, the contractor's employees, officers, agents, or subcontractors in the performance of the contract or the contractor's professional services, and the provisions may remain in full force and effect notwithstanding the expiration or early termination of the contract.

(c) No person licensed under chapter 464 that has agreed in any contract to defend a governmental body, including those contracts entered into before or after July 1, 2007, shall be required to defend the governmental body in a lawsuit filed more than ten years beyond the substantial completion of the project, except that this subsection shall not apply to any lawsuit that has been filed prior to July 1, 2007.

(d) Public works contracts entered into by any governmental body may require the contractor to indemnify the State or its officers, employees, or agents, from any liability, damage, or loss arising from any claim, action, or proceeding regarding the contractor's performance under the public works contract; provided that the contractor shall only be required to indemnify the State to the extent the contractor is found liable by a court of law. Indemnification provisions in any public works contracts may not require that the contractor indemnify the State for damages to persons or property caused in whole or in part by any act, omission, or default of a party other than:

(1) The contractor;

(2) Any of the contractor's subcontractors, sub‑subcontractors, material suppliers, or agents of any tier or their respective employees; or

(3) The contractor's officers, directors, agents, or employees;

provided that indemnification under this subsection shall not include claims of, or damages resulting from, gross negligence or wilful, wanton, or intentional misconduct of the contractor or its officers, directors, agents, or employees, or for statutory violation or punitive damages except and to the extent the statutory violation or punitive damages are caused by or result from the acts or omissions of the contractor or any of the contractor's subcontractors, sub-subcontractors, material suppliers, or agents of any tier or their respective employees.

In no event shall the contractor be required to defend the State or its officers, employees, or agents against any claim, action, or proceeding relating to the public works contract in which the State is named as a defendant. This subsection shall not be waived or modified by contractual agreement, act, or omission of the parties.

[~~(d)~~] (e) As used in this section[~~, "person"~~]:

"Person" means any person, partnership, corporation, or other entity conducting business in the State.

"Public works contract" means any contract for the development, construction, renovation, maintenance, or refurbishment of any property, where the funds or resources required to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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.

INTRODUCED BY:	_____________________________

Report Title:

Public Works Contract; Indemnification

Description:

Limits the State's ability to impose indemnification responsibilities on public works contractors in excess of the contractors' liability as determined by a court of law.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.