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HOUSE OF REPRESENTATIVES

H.B. NO.

2585

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO INDEMNIFICATION.

 

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

SECTION 1. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"304- Indemnification. (a) The board of regents may agree in writing to an indemnity provision by which the University of Hawaii agrees to indemnify, defend, and hold harmless any person, corporation, or entity when all of the following conditions are satisfied:

(1) When such person, corporation, or entity requires an indemnity in writing as a condition for receiving a grant, benefit, service, or interest in or right to use property;

(2) The president, or the president's designee, following a favorable review by the university general counsel, or its designee, approves the proposed indemnification; and

(3) The chief financial officer, in consultation with the vice chancellor for research, pursuant to section

304-6, has obtained an insurance policy or policies in an amount sufficient to cover the liability of the university that reasonably may be anticipated to arise under the indemnity provision or has determined that it is not in the best interest of the university to obtain insurance.

(b) An indemnity provision not in strict compliance with this section shall not give rise to a claim against the university under chapter 304 or 661 or otherwise waive the university's sovereign immunity."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on its approval.

INTRODUCED BY:

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