STAND. COM. REP. NO. 1031

Honolulu, Hawaii

, 2005

RE: S.B. No. 1843

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 1843, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this bill is to promote fairness in the long-term relationships between the government and contractors that provide construction design professional services by:

(1) Prohibiting the State from requiring a construction design professional services contractor to indemnify the State for the State's negligence; and

(2) Allowing the State to require the contractor to indemnify the State for the contractor's negligence.

Shigemura, Lau, Sakanishi, Higuchi and Associates, Inc., testified in support of this bill. Engineering Concepts, Inc., Clayton J. Wong & Associates, Inc., Masa Fujioka & Associates, Fukunaga & Associates, Inc., the Coalition of Hawaii Engineering & Architectural Professionals, and the American Council of Engineering Companies supported this measure with amendments.

Your Committee has amended this bill by:

 

(1) Clarifying that the State is prohibited from requiring a contractor to indemnify the State for the acts or omissions of any parties for whom the contractor is not legally liable;

(2) Clarifying that the State is allowed to require a contractor to indemnify the State only for the negligent acts, errors, or omissions, or intentional misconduct, of the contractor or parties for whom the contractor is legally liable; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1843, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1843, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

____________________________

ROBERT N. HERKES, Chair