State/County Agreements

Allows state agencies to enter into agreement to indemnify and
defend counties in joint state and county projects.

THE SENATE                              S.B. NO.           78
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that it is in the public
 2 interest that the State and the counties cooperate in providing
 3 much needed services to the public through joint
 4 intergovernmental projects.  These joint intergovernmental
 5 projects benefits the general public since it avoids unnecessary
 6 duplication of services and allows the services to be provided in
 7 a faster and more efficient method.  Examples of these joint
 8 state and county projects include development projects by the
 9 department of hawaiian home lands and the housing and community
10 development corporation, the providing of lifeguards by the
11 counties at selected state beach parks, and education/work
12 programs sponsored by the University of Hawaii community
13 colleges.
14      The counties, however, are hesitant to enter into these
15 joint projects since doing so would expose them to greater
16 liability, especially in situations when their participation is
17 limited.  To address this concern, the counties have requested
18 the sponsoring state agency to indemnify and defend them in the
19 event a lawsuit arises out of the State's project.  The state

Page 2                                                     
                                     S.B. NO.           78

 1 agencies have indicated to the counties that they are not adverse
 2 to providing them with such protections, but they need to have
 3 legislative authority to take such action.  The purpose of this
 4 Act is to authorize state agencies to indemnify and defend the
 5 counties from actions arising from the counties' participation in
 6 joint state and county projects.
 7      SECTION 2.  Chapter 26, Hawaii Revised Statutes, is amended
 8 by adding a new section to be appropriately designated and to
 9 read as follows:
10      "26-     Cooperative agreements with counties.  The head of
11 each department, with the approval of the governor, may do as
12 follows:
13      (1)  Obtain the aid and cooperation of the counties in the
14           planning, construction, operation, and maintenance
15           within and for the residents of each county, of
16           governmental projects, programs, or operations which
17           have been authorized by the legislature or for which
18           moneys have been appropriated by the legislature, and
19           enter into such agreements and arrangements as the
20           department head deems advisable to obtain such aid and
21           cooperation;
22      (2)  Procure insurance or indemnify and hold harmless any
23           county to protect it from liability for its

Page 3                                                     
                                     S.B. NO.           78

 1           participation in any state project, program, or
 2           operation."
 3      SECTION 3.  New statutory material is underscored.
 4      SECTION 4.  This Act shall take effect upon its approval and
 5 shall apply to all cooperative state and county projects which
 6 are in operation on its effective date.
 8                           INTRODUCED BY:  _______________________