HB1645 • 2026

RELATING TO LIABILITY.

Children

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: MATAYOSHI, AMATO, ILAGAN, KILA, MARTEN, OLDS, PERRUSO, POEPOE, TAM, TARNAS
Last action: 2026-03-30
Official status: Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.
Effective date: Not listed

Plain English Breakdown

The candidate explanation incorrectly states that contracts should not include indemnification clauses. The official source material specifies otherwise.

Liability Protections for Foster Care Agencies

This bill provides liability protections for nonprofit foster care agencies that work with the State to provide services to children in foster care.

What This Bill Does

Requires contracts between foster care agencies and the state to include a clause protecting the state from certain claims, unless there is gross negligence by the state.
Prohibits punitive damages and interest charges for foster care agencies involved in legal actions.
Specifies that court trials are required for any action against foster care agencies, with exceptions if all parties agree otherwise.
Removes joint and several liability for foster care agencies, limiting their responsibility to a percentage share of the damages attributable to them.
Eliminates the need for bonds from foster care agencies when appealing judgments.

Who It Names or Affects

Nonprofit foster care agencies under contract with the State
The Department of Human Services and other public agencies

Terms To Know

Indemnification: Protection from financial loss due to claims or damages.
Joint and several liability: A legal principle where each party can be held responsible for the full amount of a judgment, even if they are only partially at fault.

Limits and Unknowns

The bill does not affect rights and duties that matured before its effective date.
It is unclear how this legislation will impact insurance costs for foster care agencies in the long term.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment aims to provide liability protections for nonprofit child welfare service organizations by requiring state indemnification clauses in contracts, prohibiting punitive damages and interest, limiting joint and several liability, and removing bond requirements on appeal.

Requires contracts between nonprofits providing child welfare services and the State to include a clause that protects the State from certain claims and names the State as an additional insured party.
Prohibits nonprofit organizations from being liable for punitive damages or interest in legal actions.
Limits liability of nonprofits to their percentage share of damages when they are found responsible alongside other parties.
Removes the requirement for nonprofits to provide a bond on appeal if the judgment is stayed.

The amendment text does not specify how these protections will be enforced or what happens in cases of gross negligence by the State.

HD2

Hawaii published version HD2

Plain English: This amendment provides liability protections for nonprofit child welfare service organizations by prohibiting certain contract provisions, limiting damages, and altering trial procedures.

Prohibits both the State and nonprofit child welfare service organizations from using indemnification clauses in contracts or requiring each other to be named as additional insureds.
Eliminates pre- and post-judgment interest and punitive damages for these nonprofits.
Requires that actions against these nonprofits be tried by a court without a jury, unless all parties agree otherwise.
Removes joint and several liability for nonprofit child welfare service organizations.

The amendment text is incomplete and does not provide full details on how the protections will be implemented or enforced.

HD3

Hawaii published version HD3

Plain English: This amendment provides liability protections for nonprofit child welfare service organizations by prohibiting certain types of damages, limiting trial options, removing joint and several liability, and eliminating bond requirements.

Prohibits pre- and post-judgment interest and punitive damages for nonprofit child welfare service organizations.
Requires actions against these nonprofits to be tried by the court without a jury unless all parties agree otherwise.
Removes joint and several liability for nonprofit child welfare service organizations, meaning they are only responsible for their share of damages.
Specifies that no bond is required from a nonprofit child welfare service organization when appealing a judgment.

The amendment text does not specify the exact circumstances under which actions against nonprofits can be tried with a jury, despite mentioning exceptions exist.

SD1

Hawaii published version SD1

Plain English: This amendment provides liability protections for nonprofit organizations that work with the state to provide child welfare services, making it easier for them to get insurance coverage.

Contracts between nonprofits and the state cannot include provisions that require one party to indemnify or hold harmless the other from claims related to providing child welfare services.
Nonprofits are not liable for pre- and post-judgment interest or punitive damages in lawsuits.
Cases against nonprofits will be tried by a judge, unless all parties agree otherwise.
Joint and several liability is removed for nonprofits, meaning they only pay their share of damages.

The amendment text was truncated and does not provide full details on all protections or requirements.

Bill History

2026-03-30 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.
2026-03-30 S
Reported from HHS/CPN (Stand. Com. Rep. No. 3337) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.
2026-03-24 S
The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2026-03-20 S
The committee(s) on CPN deferred the measure until 03-24-26 9:30AM; Conference Room 229 & Videoconference.
2026-03-20 S
The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HHS were as follows: 4 Aye(s): Senator(s) San Buenaventura, Kanuha, Keohokalole, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.
2026-03-16 S
The committee(s) on HHS/CPN has scheduled a public hearing on 03-20-26 9:30AM; Conference Room 229 & Videoconference.
2026-03-12 S
Referred to HHS/CPN, JDC.
2026-03-12 S
Passed First Reading.
2026-03-12 S
Received from House (Hse. Com. No. 255).
2026-03-10 H
Passed Third Reading as amended in HD 3 with Representative(s) Garcia, Iwamoto, Shimizu voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate.
2026-03-06 H
Forty-eight (48) hours notice Tuesday, 03-10-26.
2026-03-06 H
Reported from CPC (Stand. Com. Rep. No. 1044-26) as amended in HD 3, recommending passage on Third Reading.
2026-02-26 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Kong, Lowen, Tam; Ayes with reservations: none; Noes: none; and 3 Excused: Representative(s) Iwamoto, Marten, Pierick.
2026-02-24 H
Bill scheduled to be heard by CPC on Thursday, 02-26-26 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2026-02-20 H
Report adopted; referred to the committee(s) on CPC as amended in HD 2 with Representative(s) Garcia voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1).
2026-02-20 H
Reported from JHA (Stand. Com. Rep. No. 739-26) as amended in HD 2, recommending referral to CPC.
2026-02-13 H
The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Kahaloa, Sayama; Ayes with reservations: Representative(s) Garcia, Shimizu; Noes: none; and 2 Excused: Representative(s) Cochran, Takayama.
2026-02-11 H
Bill scheduled to be heard by JHA on Friday, 02-13-26 2:00PM in House conference room 325 VIA VIDEOCONFERENCE.
2026-02-10 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and none excused (0).
2026-02-09 H
Reported from HSH (Stand. Com. Rep. No. 65-26) as amended in HD 1, recommending passage on Second Reading and referral to JHA.
2026-02-03 H
The committee on HSH recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Marten, Olds, Amato, Hartsfield, Keohokapu-Lee Loy, Takayama, Takenouchi, Alcos, Garcia; Ayes with reservations: none; Noes: none; and Excused: none.
2026-01-30 H
Re-referred to HSH, JHA, CPC, referral sheet 5
2026-01-29 H
Bill scheduled to be heard by HSH on Tuesday, 02-03-26 9:00AM in House conference room 329 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to HSH, JHA, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-20 H
Prefiled.

Official Summary Text

RELATING TO LIABILITY.
DHS; Nonprofit Child Welfare Service Organizations; Child Welfare Services; Liability; Indemnification; Additional Insured; Trial; Bond
Provides certain liability protections for nonprofit child welfare service organizations that are under contract with the Department of Human Services to provide child welfare services to children and families. Prohibits contracts between nonprofit child welfare service organizations and the State from including indemnification and hold harmless provisions and from requiring either party to name the other as an additional insured in their respective liability insurance policies. Prohibits pre- and post-judgment interest and punitive damages for nonprofit child welfare service organizations. Requires actions against nonprofit child welfare service organizations to be tried by the court, except in certain circumstances. Removes joint and several liability for nonprofit child welfare service organizations. Specifies that no bond shall be required from a nonprofit child welfare service organization on appeal. Effective 1/30/2050. (SD1)

Current Bill Text

Read the full stored bill text

HB1645

HOUSE OF REPRESENTATIVES

H.B. NO.

1645

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to liability
.

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

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SECTION 1.
�
The legislature finds that nonprofit social
service organizations provide essential, mandated services to children and
families in partnership with the State, that otherwise would have to be
performed by the State itself.
�
The legislature
further finds that these nonprofit organizations are now facing increasing
challenges in securing general and professional liability insurance coverage.
�
Many insurance carriers have withdrawn from
the market, reduced coverage limits, or imposed drastically higher premiums,
making coverage either unavailable or unaffordable.

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The legislature additionally finds
that without adequate liability insurance coverage, nonprofit organizations
cannot maintain state contracts or deliver critically needed services.
�
Furthermore, the legislature finds that rising
insurance costs combined with stagnant contract reimbursements threaten the
financial sustainability of these nonprofit organizations.
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These circumstances risk disrupting services provided
by nonprofit organizations under contract with the State, which would leave
vulnerable children and families without necessary resources and place an
unsustainable burden on state agencies.

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Moreover, the legislature finds that
the underlying cause of the crisis faced by these nonprofit organizations is
the growing frequency and severity of lawsuits involving child-related
tragedies.
�
Litigation strategies often
include nonprofit organizations even when they are not found responsible,
resulting in nuclear judgments that destabilize the insurance market.
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As a result, nonprofit organizations are
increasingly forced to rely on excess and surplus lines insurance coverage,
which offers reduced liability protection at significantly higher costs.

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The legislature finds that if this
issue is not addressed, nonprofit organizations may withdraw from this type of work,
creating significant gaps in services and straining state agencies that are tasked
with filling those gaps.
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The legislature
further finds that legislative and administrative solutions are needed to
ensure that nonprofit organizations that provide foster care services can
obtain reasonable and sustainable liability insurance coverage, thereby safeguarding
the continuity of essential services for children and families across the State.

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The
purpose of this Act is to provide certain liability protections for nonprofit foster
care agencies that are under contract with the State to provide foster care
services to children in foster care, including:

����
(1)
�
Requiring contracts between foster care
agencies and the State to include a state indemnification clause and requiring
foster care agencies to name the State as an additional insured;

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(2)
�
Prohibiting punitive damages and pre- and
post-judgment interest for foster care agencies;

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(3)
�
Requiring actions against foster care agencies
to be tried by the court, except in certain circumstances;

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(4)
�
Removing joint and several liability for
foster care agencies; and

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(5)
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Specifying that no bond shall be required from
a foster care agency on appeal.

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SECTION 2.
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The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:

"
Chapter

FOSTER
CARE AGENCIES; FOSTER CARE; LIABILITY

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�
-1
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Definitions.
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As used in this chapter:

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"Authorized agency" means the
department of human services, other public agency, or a foster care agency that
is licensed by the department of human services or approved by the family court
to receive children for control, care, maintenance, or placement.

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"Foster care" means continuous
twenty-four-hour care and supportive services provided for a child by an
authorized agency or the family court.

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"Foster care agency" means
a nonprofit organization or entity that is under contract with the State to
provide foster care services for children in foster care.

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�
-2
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Foster care agencies; state contracts;
indemnification; additional insured.
�

(a)
�
Any contract entered into between
a foster care agency and the State to provide foster care shall include a
provision that indemnifies and holds harmless the State of Hawaii and its
officers, agents, and employees from and against any and all claims arising out
of or resulting from the foster care agency's provision of foster care, unless there
is a finding of gross negligence on the part of the State.

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(b)
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The foster care agency shall obtain
sufficient insurance to provide the indemnification under subsection (a), if
requested to do so by the department of human services.

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(c)
�
Any insurance policy obtained by a foster
care agency shall name the State of Hawaii, and its officers, agents, and
employees as additional insured and shall constitute primary insurance for the
State, with respect to operations performed for the State.

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-3
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Liability; interest; punitive damages.

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A foster care agency shall not be liable for:

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(1)
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Interest prior to or
after judgment; or

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(2)
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Punitive damages.

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-4
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Jury trial, when.

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Any action against a foster care agency under
this chapter shall be tried by the court without a jury; provided that the
court, with the consent of all the parties, may order a trial with a jury,
whose verdict shall have the same effect as if trial by jury had been a matter
of right.

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-5
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Foster care agency as a tortfeasor;
abolition of joint and several liability.
�

(a)
�
Any other law to the contrary
notwithstanding, in any case in which a foster care agency is determined to be
a tortfeasor along with one or more other tortfeasors, the foster care agency
shall be liable for no more than that percentage share of the damages
attributable to the foster care agency.

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(b)
�

For purposes of this section, the liability of a foster care agency
shall include its vicarious liability for the acts or omissions of its officers
and employees.

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-6
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Judgment on appeal; no bond.
�
When an appeal is taken by a foster care
agency, and the operation or enforcement of the judgment is stayed, no bond,
obligation, or other security shall be required from the foster care agency."

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SECTION 3.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Foster
Care Agencies; Foster Care; Liability; Indemnification; Insurance; Trial; Bond

Description:

Provides
certain liability protections for foster care agencies that are under contract
with the State to provide foster care services to children in foster care.
�
Requires contracts between foster care
agencies and the State to include a state indemnification clause and requires
foster care agencies to name the State as an additional insured.
�
Prohibits punitive damages and pre- and post-judgment
interest for foster care agencies.
�

Requires actions against foster care agencies to be tried by the court,
except in certain circumstances.
�
Removes
joint and several liability for foster care agencies.
�
Specifies that no bond shall be required from
a foster care agency on appeal.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.