HI HB1168

Clarifies the Director of Transportation's statutory authority to adopt administrative rules requiring airport users and occupiers engaged in business or commercial activities to defend, indemnify, and hold harmless the State against claims and damages arising from their use or occupation of airport facilities.

Addresses a gap in existing law where the Department of Transportation had attempted to impose indemnification duties on certain permittees through administrative rules, but the Hawaii Supreme Court ruled in Haole v. State of Hawaii, 111 Haw. 144 (2006), that the Department lacked statutory authority to do so.

Applies to permittees and commercial operators who do not have formal lease agreements or revocable permits with the Department of Transportation.

Provides legal protection to the State by granting express statutory authority for indemnification requirements that the Department had previously attempted to enforce administratively.