REPORT TITLE:
Claims Against the State


DESCRIPTION:
Makes appropriation to pay claims against the State.  Provides
for annual reports to the legislature by the attorney general on
claims against the State.  Requires claims for legislative relief
to be made within six years from the date on which the claim
matured.  Requires the attorney general to consult with the
governor before entering into any settlement agreement for
rewards exceeding $75,000 that are subject to legislative
approval.(HB989 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        989
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE RELIEF OF CERTAIN PERSONS' CLAIMS AGAINST THE
   STATE AND PROVIDING APPROPRIATIONS THEREFOR.



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

 1      SECTION 1.  The following sums of money are appropriated
 
 2 out of the general revenues of the State of Hawaii for the
 
 3 purpose of satisfying claims for legislative relief as to the
 
 4 following named persons, firms, corporations, and entities,
 
 5 for claims against the State or its officers or employees for
 
 6 overpayment of taxes, or for refunds, reimbursements,
 
 7 payments of judgments or settlements, or other liabilities,
 
 8 in the amount set forth opposite their names:
 
 9 JUDGMENTS AGAINST THE STATE                             AMOUNT
10 AND SETTLEMENTS OF CLAIMS:
11 
12 Abalos v. State of Hawaii, et al.                  $    44,707.70
13 Civil No. 96-0282, Fifth Circuit                       Settlement
14 
15 Akiba, DLIR v. Schuman Carriage                    $     5,287.82
16 Buick-Cadillac-Subaru, Inc.,                             Judgment
17 Civil No. IRC97-5743, District Court
18      Amount of Judgment:          $  5,067.82
19      Interest at 4% from 7/20/98: $    220.00
20 
21 Bueno v. Matsumoto, et al.                         $    45,000.00
22 Civil No. 94-0019, Fifth Circuit                       Settlement
23 
24 Burns-Vidlak, et al. v. Chandler, et al.           $    20,704.31
25 Civil No. 95-00892 BMK, U.S.D.C.                         Judgment
26 
27 Casteel v. State of Hawaii                         $   240,000.00
28 Civil No. 96-0091(2), Second Circuit                   Settlement
29 

 
Page 2                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1 Coveyou v. State of Hawaii, et al.                 $   115,861.00
 2 Civil No. 96-0870-03, First Circuit                    Settlement
 3      Amount of Settlement:        $110,000.00
 4      Interest at 4% from 4/1/98:  $  5,861.00
 5 
 6 Cunningham v. State of Hawaii, et al.              $   200,000.00
 7 Civil No. 96-3816-09, First Circuit                    Settlement
 8 
 9 DesMarais v. Lau, et al.                           $    15,000.00
10 Civil No. 93-2040-05, First Circuit                    Settlement
11 
12 Doe v. Sumner, et al.                              $    15,000.00
13 Civil No. 94-2886-08, First circuit                    Settlement
14 
15 Echiberi v. State of Hawaii                        $    24,000.00
16 Civil No. 97-1800-05, First Circuit                    Settlement
17 
18 Edwards v. State of Hawaii                         $    84,320.00
19 Civil No. 96-01198 DAE, USDC                           Settlement
20 
21 Environment Hawaii, et al. v. Wilson,              $    37,354.64
22 et al.                                                   Judgment
23 Civil No. 97-2404-06, First Circuit
24 
25 Freitas v. State of Hawaii                         $   125,000.00
26 Civil No. 97-4242-10, First Circuit                    Settlement
27 
28 Gonsalves v. State of Hawaii, et al.               $    16,000.00
29 Civil No. 98-0485(1), Second Circuit                   Settlement
30 
31 Jordan v. State of Hawaii                          $    20,000.00
32 Civil No. 96-0304, Fifth Circuit                       Settlement
33 
34 Kautz v. University of Hawaii, et al.              $    50,000.00
35 Civil No. 98-1478-03, First Circuit and                Settlement
36 Civil No. 96-01012, USDC
37 
38 King v. State of Hawaii                            $    20,000.00
39 Civil No. 93-2919-07, First Circuit                    Settlement
40 
41 Lee v. Su, et al.                                  $   115,000.00
42 Civil No. 97-2272-06, First Circuit                    Settlement
43 
44 Matias v. Giacobetti, et al.                       $    25,000.00
45 Civil No. 98-0218-01, First Circuit                    Settlement
46 

 
Page 3                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1 Matsushima v. State of Hawaii                      $    16,000.00
 2 Civil No. 97-4997-12, First Circuit                    Settlement
 3 
 4 Miles v. State, et al.                             $    20,000.00
 5 Civil No. 96-4238-10, First Circuit                    Settlement
 6 
 7 Morales v. State of Hawaii, et al.                 $    15,000.00
 8 Civil No. 96-3401-08, First Circuit                    Settlement
 9 
10 Napeahi v. Wilson, et al.                          $   203,500.00
11 Civil No. 85-9523 DAE, U.S.D.C.                        Settlement
12      Amount of Settlement:        $185,000.00
13      Interest at 10%:             $ 18,500.00
14 
15 Nobriga v. Department of Public
16 Safety, et al.                                     $    14,229.33
17 Civil No. 97-3733-09, First Circuit                    Settlement
18 
19 O'Donnell v. The University of Hawaii, et al.      $    27,000.00
20 Civil No. 93-3019-08, First Circuit                    Settlement
21 
22 Ome v. State of Hawaii                             $   175,000.00
23 Civil No. 97-3464-08, First Circuit                    Settlement
24 
25 Pangilinan v. State                                $    20,000.00
26 Civil No. 96-4956-12, First Circuit                    Settlement
27 
28 Perez v. State                                     $    35,000.00
29 Civil No. 93-0611-02, First Circuit                    Settlement
30 
31 Piko v. State of Hawaii, et al.                    $   120,000.00
32 Civil No. 96-1927-05, First Circuit                    Settlement
33 
34 Prevost v. State of Hawaii                         $    63,115.78
35 Civil No. 97-2227-05, First Circuit                      Judgment
36      Amount of Judgment:          $ 60,400.78
37      Interest at 4% from 6/17/98: $  2,715.00
38 
39 Quiaoit v. State of Hawaii                         $   306,693.95
40 Civil No. 94-3714-09, First Circuit                      Judgment
41      Amount of Judgment:          $303,373.17
42      Interest at 4% from 7/11/97: $  5,219.97
43 
44 Saunders, et al. v. Knudsen, et al.                $    80,000.00
45 Civil No. 97-01038DAE, USDC                            Settlement
46 

 
Page 4                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1 Shannon, et al. v. State of Hawaii, et al.         $   430,000.00
 2 Civil No. 98-00228 HG, USDC                            Settlement
 3      Claimant #1:  $71,666.66
 4      Claimant #2:  $71,666.66
 5      Claimant #3:  $71,666.66
 6      Claimant #4:  $71,666.66
 7      Claimant #5:  $71,666.66
 8      Claimant #6:  $71,666.66
 9 
10 Silva v. State of Hawaii, et al.                   $    26,310.00
11 Civil No. 93-3361-08, First Circuit                    Settlement
12      Amount of Settlement:        $ 25,000.00
13      Interest at 4% from 4/1/98:  $  1,310.00
14 
15 Singleton v. State of Hawaii, et al.               $   160,000.00
16 Civil No. 97-0091K, Third Circuit                      Settlement
17 
18 Trendler v. State of Hawaii, et al.                $ 2,000,000.00
19 Civil No. 95-0924(3), Second Circuit                   Settlement
20 
21 Trim v. Adams, et al.                              $    95,000.00
22 Civil No. 95-4339-11, First Circuit                    Settlement
23 
24 Victorino v. State of Hawaii, et al.               $    16,666.66
25 Civil No. 96-0635(1), Second Circuit                   Settlement
26 
27 Weldon v. Murray, et al.                           $    50,000.00
28 Civil No. 96-4062-10, First Circuit                    Settlement
29 
30 Witsell v. State of Hawaii                         $    25,000.00
31 Civil No. 96-0401-01, First Circuit                    Settlement
32 
33 Claim of C. Brewer Homes, Inc.                     $   800,000.00
34                                                        Settlement
35 
36 MISCELLANEOUS CLAIMS:
37 
38 Carlos Angora                                      $     5,385.68
39 
40 Richard K. Blaisdell                               $       597.60
41 
42 Gem of Hawaii, Inc.                                $       805.96
43 
44 Kepuhi Partnership                                 $     1,042.28
45 
46 Henry Marion                                       $       858.04
47 

 
Page 5                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1 Harold Masumoto                                    $   269,792.50
 2 
 3 Leora Murakami                                     $       379.00
 4 
 5 SMS Research and Marketing                         $     3,950.00
 6 
 7 Ethel Tomoguchi                                    $       908.41
 8 
 9 Daniel C. Malakie                                  $       640.76
10 
11 Evon K. Kaawa                                      $        87.66
12 
13 Shirley L. Wong                                    $       107.40
14 
15 Steven S. Yamaki                                   $        91.47
16 
17 Jo Ann Loa                                         $       171.60
18 
19 Leighton Y.H. and Valerie Ah Cook                  $       334.00
20 
21 Alison Johns                                       $       200.00
22 
23 Estate of Yaeko Fasone                             $       258.00
24 
25 Lydia T. Auyong                                    $       167.40
26 
27 Jody K. Uchida                                     $       107.46
28 
29 David G. Yukimura                                  $     1,121.80
30 
31 Daniel and Carol Eckstein                          $     2,179.97
32 
33      SECTION 2.  The sums hereinabove appropriated may be paid to
 
34 the respective persons, or for the satisfaction or settlement of
 
35 the respectively identified cases, and in the several amounts
 
36 hereinabove set forth or in lesser amounts deemed appropriate,
 
37 upon warrants or checks issued by the comptroller of the State:
 
38      (1)  Upon vouchers approved by the director of taxation as
 
39           to claims for refunds of taxes; and
 

 
Page 6                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1      (2)  Upon vouchers approved by the attorney general as to
 
 2           all other claims.
 
 3      SECTION 3.  Notwithstanding the sums hereinabove
 
 4 appropriated as interest upon judgments against the State,
 
 5 payment of interest shall be limited to the period from the date
 
 6 of judgment, if applicable, to thirty days after the effective
 
 7 date of this Act, as provided in section 662-8, Hawaii Revised
 
 8 Statutes, for those cases to which that statute applies.
 
 9      SECTION 4.  All unexpended and unencumbered balances of the
 
10 appropriations made by sections 1 and 2 of this Act as of the
 
11 close of business on June 30, 2000, shall lapse into the fund
 
12 from which appropriated.
 
13      SECTION 5.  The Hawaii Revised Statutes is amended by adding
 
14 a new section to be appropriately designated and to read as
 
15 follows:
 
16      �   -      Claims against the State; report to the
 
17 legislature.  (a)  The attorney general shall develop and
 
18 implement a procedure, no later than October 1, 1999, for
 
19 advising its client agencies on how to avoid future claims, by
 
20 requesting client agencies to take corrective action to eliminate
 
21 or mitigate those factors identified by the attorney general as
 
22 contributing to the State's negligence.  Based upon this advice,
 
23 the client agencies shall develop new policies or modify existing
 
24 practices to avoid repetition of similar claims.
 

 
Page 7                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1      (b)  The attorney general shall submit a report to the
 
 2 speaker of the house of representatives, the president of the
 
 3 senate, and the chairs of the house and senate judiciary
 
 4 committees no later than twenty days prior to the convening of
 
 5 each regular legislative session describing the claims and the
 
 6 attendant circumstances therein and containing the advice for
 
 7 corrective action rendered to the agency. The report shall also
 
 8 contain the remedial measures which the Attorney General shall
 
 9 take or recomended that the Legislature take if an agency fails
 
10 to take corrective action within a reasonable period of time.
 
11 The report shall be deemed a confidential and privileged
 
12 communication to the legislature and shall not be disclosed
 
13 pursuant to sections 92F-13 and 92F-19(b)."
 
14      SECTION 6.  Section 37-77, Hawaii Revised Statutes, is
 
15 amended to read as follows: 
 
16      "�37-77  Claims for legislative relief.  All claims for
 
17 refunds, reimbursements, or other payments, authorization for
 
18 which is sought from the legislature, shall, as a condition to
 
19 their being considered by the legislature, be filed with the
 
20 attorney general together with all data and documents in support
 
21 thereof[.] within six years from the date on which the claim for
 
22 payment matured.  In the absence of a showing of sufficient
 
23 reason therefor, failure to comply with this paragraph shall be
 
24 deemed sufficient cause for refusal of the legislature to
 
25 consider the claims.
 

 
Page 8                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1      The attorney general shall, immediately upon receipt
 
 2 thereof, refer any claim and data so received by the attorney
 
 3 general to the agency concerned or the comptroller, and the
 
 4 agency to which the reference is made or the comptroller shall
 
 5 immediately investigate the claim, secure all available data and
 
 6 documents bearing thereon, and refer the same back to the
 
 7 attorney general with its recommendations thereon.  The attorney
 
 8 general shall review the claim and make a recommendation as to
 
 9 the disposition of the claim.
 
10      The attorney general shall, within five days after the
 
11 opening of the session, transmit to the legislature the claims
 
12 which are then recommended for approval in an appropriate
 
13 legislative bill form, together with an explanation for each
 
14 claim.  Additional recommendations for approval may be
 
15 transmitted later in the session.  All claims for which there is
 
16 a recommendation of denial shall also be reported to the
 
17 legislature with an explanation.  The data and documents
 
18 submitted by claimants shall be available for inspection by the
 
19 legislature."
 
20      SECTION 7.  The attorney general shall consult with the
 
21 governor prior to entering into any settlement agreement for
 
22 awards exceeding $75,000 that are subject to legislative
 
23 approval.
 

 
Page 9                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 
 1      SECTION 8.  If any provision of this Act, or the application
 
 2 thereof to any person or entity or circumstance is held invalid,
 
 3 the invalidity does not affect other provisions or applications
 
 4 of the Act which can be given effect without the invalid
 
 5 provision or application, and to this end the provisions of this
 
 6 Act are severable.
 
 7      SECTION 9.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 10.  This Act shall take effect on July 1, 1999.