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HB166
HOUSE OF REPRESENTATIVES
H.B. NO.
166
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE DEFENSE OF STATE EMPLOYEES
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds that Act 44, Session
Laws of Hawaii 2022 (Act 44), clarified the personal liability requirements for
professionally licensed or certified employees of the State.
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However, the legislature notes that Act 44
did not clarify the circumstances under which the State has a duty to defend
professionally licensed or certified state employees.
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Act 44 also did not
establish a procedure that would
allow the attorney general to confidentially withdraw from representing a
professionally licensed or certified state employee.
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The legislature believes that the prejudice
that the professionally licensed or certified state employee would suffer from
the public disclosure of the attorney general's reasons for withdrawing from
representation outweighs the public's right to access said information.
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Accordingly, the purpose of this Act
is to:
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(1)
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Declare
that the State has a duty to defend professionally licensed or certified state
employees from civil actions when the employee's actions were within the scope
of employment and were not grossly negligent or wanton, as long as the employee
is cooperating with the State's defense;
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(2)
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Clarify
that professionally licensed or certified state employees may employ their own
attorneys at their own expense;
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(3)
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Require
the attorney general to work with the professionally licensed or certified
state employee to amicably transfer representation to the successor counsel
chosen by the employee if the State declines to defend the employee from a civil
action on certain grounds; and
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(4)
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Require
the attorney general to file a confidential motion to withdraw as counsel if
the attorney general and professionally licensed or certified state employee
cannot amicably transfer representation to the successor counsel.
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SECTION
2.
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Chapter 662, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:
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Defense of professionally licensed or
certified state employees; decision not to defend.
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(a)
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The attorney general, on behalf of the State, shall defend any civil
action or proceeding brought in any court against any professionally licensed
or certified employee of the State for damage to property or personal injury,
including death, resulting from the act or omission of the professionally
licensed or certified state employee while acting within the scope of the
employee's employment; provided that the attorney general shall have no
obligation to defend when the civil action or proceeding results from the
professionally licensed or certified state employee's gross negligence or
wanton act or omission, or if the employee does not provide all information and
assistance that the attorney general deems necessary to the defense of the
employee.
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(b)
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The professionally licensed or certified
state employee may employ an attorney at the employee's own expense, in lieu of
the attorney general, to defend any civil action or proceeding brought in any
court against the employee.
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(c)
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If the attorney general declines to
defend a civil action or proceeding against a professionally licensed or
certified state employee who was acting within the scope of the employee's
employment on the grounds that the civil action or proceeding results from the
employee's gross negligence or wanton act or omission or that the employee is
not providing all information and assistance that the attorney general deems
necessary, the attorney general shall work with the professionally licensed or
certified state employee to amicably transfer representation to the successor
counsel chosen by the professionally licensed or certified state employee.
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(d)
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If the attorney general and the
professionally licensed or certified state employee cannot amicably transfer
representation to the successor counsel, the attorney general shall file a
motion to withdraw as counsel not less than thirty days before the close of
discovery in the action or proceeding.
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(e)
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Any motion to withdraw as counsel, and
all related pleadings, records, notices, exhibits, and other evidence regarding
the motion, shall be designated as confidential and shall be submitted by means
of a confidential information form or other appropriate manner pursuant to
court rule.
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(f)
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After the attorney general's motion to
withdraw as counsel is filed, the professionally licensed or certified state employee
shall have not less than thirty days to respond to the motion.
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(g)
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Upon the attorney general's motion to
withdraw as counsel, the court shall conduct a hearing regarding the attorney
general's duty to defend the professionally licensed or certified state
employee in the civil action or proceeding.
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(h)
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At any proceeding regarding the motion to
withdraw as counsel, only the court, court personnel, attorney general,
employees of and counsel retained by the department of the attorney general, professionally
licensed or certified state employee and the employee's attorney, if retained, and
other individuals approved by the court may be present.
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SECTION
3.
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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.
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New statutory material is
underscored.
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SECTION 5.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
State
Employees; Professionally Licensed; Certified; Duty to Defend
Description:
Requires
the State to defend professionally licensed or certified state employees from
civil actions or proceedings, under certain circumstances.
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Clarifies that the employee may employ their
own attorney at the employee's own expense.
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Establishes a process for the Attorney General to transfer or withdraw
representation if the Attorney General declines to defend the employee.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.