SB2301

Report Title:

Indemnification Agreements; Planned Community Associations

 

Description:

Allows the State to enter into an indemnification agreement in connection with a building and construction contract with a planned community association to provide that the State will indemnify the association for losses incurred due to public use.

 

THE SENATE	S.B. NO.	2301
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to indemnification agreements.

 

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

SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§421J- Building and construction contracts; indemnification agreements. (a) As used in this section:

"Building and construction contract" means a contract for the design, construction, alteration, improvement, repair, or maintenance of real property, highways, roads, sidewalks, or bridges.

"Indemnification agreement" means an agreement by the State to indemnify or hold harmless an association against liability or claims of liability for damages arising out of bodily injury to persons or out of physical damage to tangible or real property.

(b) The State may enter into an indemnification agreement that is contained in, or executed in connection with, a building and construction contract with an association to provide that the State will indemnify the association for losses incurred due to public use.

(c) The existence of an indemnification agreement does not allow an action to be brought against the State. The State shall not be made a party in any action solely because of the existence of an indemnification agreement. No judgment shall be executed against an association until the legislature has reviewed and approved the judgment."

SECTION 2. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________