Bill Text: HI SB824 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Motor Carriers; Transportation Services; Indemnification

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2012-07-10 - (S) Act 298, 7/9/2012 (Gov. Msg. No. 1415). [SB824 Detail]

Download: Hawaii-2012-SB824-Amended.html

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STAND. COM. REP. NO. 9

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 824

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Transportation and International Affairs, to which was referred S.B. No. 824 entitled:

 

"A BILL FOR AN ACT RELATING TO MOTOR CARRIERS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to make null and unenforceable any portion of a  motor carrier transportation services contract or agreement that  requires the carrier to indemnify, defend, or hold harmless the other party to the contract from any liability for that party's negligence or intentional acts or omissions.

 

     Your Committee received testimony in support of this measure from the Hawaii Transportation Association and Elite Limousine Service Inc.

 

     Your Committee finds that motor carriers, including trucking and tour bus companies, are often required to sign transportation service contracts or agreements requiring them to indemnify the other party to a motor carrier transportation services contract for acts of negligence or intentional acts or omissions, regardless of who is actually at fault. 

 

     Your Committee further finds that while motor carriers should be held responsible for liability to the extent that the carrier is at fault, indemnification provisions can be unreasonable and place an undue burden on carriers since they are often not in a position to be able to refuse a transportation services agreement.  In addition, indemnification provisions may eliminate the incentive for the other party to take precautions at their facilities to protect the persons and property being transported.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purpose of clarity.

 

     As affirmed by the record of votes of the members of your Committee on Transportation and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 824, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 824, S.D. 1, and be referred to the Committee on Judiciary and Labor.

 

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

 

		____________________________ J. KALANI ENGLISH, Chair