Bill > HB1645

This bill provides specific liability protections for nonprofit child welfare service organizations that are contracted by the State's Department of Human Services to care for children and families, aiming to ensure these organizations can continue their vital work by addressing rising insurance costs and litigation challenges. Key provisions include prohibiting contracts from containing clauses where one party indemnifies or holds harmless the other, meaning neither the organization nor the State can be contractually obligated to cover the other's legal liabilities, and preventing them from being required to list each other as an "additional insured" on their insurance policies. The bill also shields these nonprofit organizations from paying interest on judgments before or after they are decided, and from being subjected to punitive damages, which are meant to punish wrongdoing. Furthermore, lawsuits against these organizations will generally be decided by a judge rather than a jury, unless all parties agree otherwise, and their liability will be limited to their specific percentage of fault in any legal action, removing the concept of "joint and several liability" where one party could be held responsible for the entire amount of damages even if others were also at fault. Finally, when a nonprofit child welfare service organization appeals a court decision, they will not be required to post a bond or provide other security.

Business and Industry, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1645&year=2026