HI HB1163

Authorizes the Department of Transportation to impose indemnification duties on private parties using state harbors through administrative rule.

Requires harbor facility users to defend, hold harmless, and indemnify the State against claims arising from their operations, except where the Department is proven solely and legally negligent.

Defines "state harbor property" as commercial harbors, ports, roadsteads, harbor buildings, docks, wharves, piers, quays, bulkheads, and landings owned by the State.

Addresses a Hawaii Supreme Court ruling in Haole v. State of Hawaii (2006) that found the Department lacked statutory authority to enforce indemnification rules without legislative authorization.

Protects the State from financial liability in lawsuits arising from negligent acts of harbor facility users.