REPORT TITLE:
Claims Against the State


DESCRIPTION:
Makes appropriation to pay claims against the State. (HB989 SD1)

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


                   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, Lorraine, 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. 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 Echiberi v. State of Hawaii                        $    24,000.00
13 Civil No. 97-1800-05, First Circuit                    Settlement
14 
15 Edwards v. State of Hawaii                         $    84,320.00
16 Civil No. 96-01198 DAE, USDC                           Settlement
17 
18 Environment Hawaii, et al. v. Michael              $    37,354.64
19 D. Wilson, et al.                                       Judgement
20 Civil No. 97-2404-06, First Circuit
21 
22 Freitas v. State of Hawaii                         $   125,000.00
23 Civil No. 97-4242-10, First Circuit                    Settlement
24 
25 Gonsalves v. State of Hawaii, et al.               $    16,000.00
26 Civil No. 98-0485(1), Second Circuit                   Settlement
27 
28 Jordan v. State of Hawaii                          $    20,000.00
29 Civil No. 96-0304, Fifth Circuit                       Settlement
30 
31 Kautz v. University of Hawaii, et al.              $    50,000.00
32 Civil No. 98-1478-03, First Circuit and                Settlement
33 Civil No. 96-01012, USDC
34 
35 King v. State of Hawaii                            $    20,000.00
36 Civil No. 93-2919-07, First Circuit                    Settlement
37 
38 Lee v. Su, et al.                                  $   115,000.00
39 Civil No. 97-2272-06, First Circuit                    Settlement
40 
41 Matias v. Giacobetti, et al.                       $    25,000.00
42 Civil No. 98-0218-01, First Circuit                    Settlement
43 
44 Matsushima v. State of Hawaii                      $    16,000.00
45 Civil No. 97-2272-06, First Circuit                    Settlement
46 

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

 
 1 Miles v. State, et al.                             $    20,000.00
 2 Civil No. 96-4238-10, First Circuit                    Settlement
 3 
 4 Morales v. State of Hawaii, et al.                 $    15,000.00
 5 Civil No. 96-3401-08, First Circuit                    Settlement
 6 
 7 Napeahi v. Wilson, et al.                          $   203,500.00
 8 Civil No. 85-9523 DAE, U.S.D.C.                        Settlement
 9      Amount of Settlement:        $185,000.00
10      Interest at 10%:             $ 18,500.00
11 
12 O'Donnell v. The University of Hawaii, et al.      $    27,000.00
13 Civil No. 93-3019-08, First Circuit                    Settlement
14 
15 Ome v. State of Hawaii                             $   175,000.00
16 Civil No. 97-3464-08, First Circuit                    Settlement
17 
18 Pangilinan v. State                                $    20,000.00
19 Civil No. 96-4956-12, First Circuit                    Settlement
20 
21 Perez v. State                                     $    35,000.00
22 Civil No. 93-0611-02, First Circuit                    Settlement
23 
24 Piko v. State of Hawaii, et al.                    $   120,000.00
25 Civil No. 96-1927-05, First Circuit                    Settlement
26 
27 Prevost v. State of Hawaii                         $    63,115.78
28 Civil No. 97-2227-05, First Circuit                      Judgment
29      Amount of Judgment:          $ 60,400.78
30      Interest at 4% from 6/17/98: $  2,715.00
31 
32 Quiaoit v. State of Hawaii                         $   308,593.14
33 Civil No. 94-3714-09, First Circuit                      Judgment
34      Amount of Judgment:          $303,373.17
35      Interest at 4% from 7/11/97: $  5,219.97
36 
37 Saunders, et al. v. Knudsen, et al.                $    80,000.00
38 Civil No. 97-01038DAE, USDC                            Settlement
39 
40 Silva v. State of Hawaii, et al.                   $    26,310.00
41 Civil No. 93-3361-08, First Circuit                    Settlement
42      Amount of Settlement:        $ 25,000.00
43      Interest at 4% from 4/1/98:  $  1,310.00
44 
45 Singleton v. State of Hawaii, et al.               $   160,000.00
46 Civil No. 97-0091K, Third Circuit                      Settlement
47 

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

 
 1 Trendler v. State of Hawaii, et al.                $ 2,000,000.00
 2 Civil No. 95-0924(3), Second Circuit                   Settlement
 3 
 4 Trim v. Adams, et al.                              $    95,000.00
 5 Civil No. 95-4339-11, First Circuit                    Settlement
 6 
 7 Victorino v. State of Hawaii, et al.               $    16,666.66
 8 Civil No. 96-0635(1), Second Circuit                   Settlement
 9 
10 Weldon v. Murray, et al.                           $    50,000.00
11 Civil No. 96-4062-10, First Circuit                    Settlement
12 
13 Witsell v. State of Hawaii                         $    25,000.00
14 Civil No. 96-0401-01, First Circuit                    Settlement
15 
16 
17 MISCELLANEOUS CLAIMS:
18 
19 Carlos Angora                                      $     5,385.68
20 
21 Richard K. Blaisdell                               $       597.60
22 
23 Gem of Hawaii, Inc.                                $       805.96
24 
25 Kepuhi Partnership                                 $     1,042.28
26 
27 Henry Marion                                       $       858.04
28 
29 Leora Murakami                                     $       379.00
30 
31 SMS Research and Marketing                         $     3,950.00
32 
33 Ethel Tomoguchi                                    $       908.41
34 
35 Daniel C. Malakie                                  $       640.76
36 
37 Evon K. Kaawa                                      $        87.66
38 
39 Shirley L. Wong                                    $       107.40
40 
41 Steven S. Yamaki                                   $        91.47
42 
43 Jo Ann Loa                                         $       171.60
44 
45 Leighton Y.H. and Valerie Ah Cook                  $       334.00
46 

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

 
 1 Alison Johns                                       $       200.00
 2 
 3 Estate of Yaeko Fasone                             $       258.00
 4 
 5 Lydia T. Auyong                                    $       167.40
 6 
 7 Jody K. Uchida                                     $       107.46
 8 
 9 David G. Yukimura                                  $     1,121.80
10 
11 Daniel and Carol Eckstein                          $     2,179.97
12 
13      SECTION 2.  Section 37-77, Hawaii Revised Statutes, is
 
14 amended to read as follows: 
 
15      "§37-77  Claims for legislative relief.  All claims for
 
16 refunds, reimbursements, or other payments, authorization for
 
17 which is sought from the legislature, shall, as a condition to
 
18 their being considered by the legislature, be filed with the
 
19 attorney general together with all data and documents in support
 
20 thereof within six years from the date on which the claim for
 
21 payment matured.  In the absence of a showing of sufficient
 
22 reason therefor, failure to comply with this paragraph shall be
 
23 deemed sufficient cause for refusal of the legislature to
 
24 consider the claims.
 
25      The attorney general shall, immediately upon receipt
 
26 thereof, refer any claim and data so received by the attorney
 
27 general to the agency concerned or the comptroller, and the
 
28 agency to which the reference is made or the comptroller shall
 
29 immediately investigate the claim, secure all available data and
 

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

 
 1 documents bearing thereon, and refer the same back to the
 
 2 attorney general with its recommendations thereon.  The attorney
 
 3 general shall review the claim and make a recommendation as to
 
 4 the disposition of the claim.
 
 5      The attorney general shall, within five days after the
 
 6 opening of the session, transmit to the legislature the claims
 
 7 which are then recommended for approval in an appropriate
 
 8 legislative bill form, together with an explanation for each
 
 9 claim.  Additional recommendations for approval may be
 
10 transmitted later in the session.  All claims for which there is
 
11 a recommendation of denial shall also be reported to the
 
12 legislature with an explanation.  The data and documents
 
13 submitted by claimants shall be available for inspection by the
 
14 legislature."
 
15      SECTION 3.  The sums hereinabove appropriated may be paid to
 
16 the respective persons, or for the satisfaction or settlement of
 
17 the respectively identified cases, and in the several amounts
 
18 hereinabove set forth or in lesser amounts deemed appropriate,
 
19 upon warrants or checks issued by the comptroller of the State:
 
20 (1) upon vouchers approved by the director of taxation as to
 
21 claims for refunds of taxes, and (2) upon vouchers approved by
 
22 the attorney general as to all other claims.
 

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

 
 1      SECTION 4.  Notwithstanding the sums hereinabove
 
 2 appropriated as interest upon judgments against the State,
 
 3 payment of interest shall be limited to the period from the date
 
 4 of judgment, if applicable, to thirty days after the effective
 
 5 date of this Act, as provided in section 662-8, Hawaii Revised
 
 6 Statutes, for those cases to which that statute applies.
 
 7      SECTION 5.  All unexpended and unencumbered balances of the
 
 8 appropriations made by section 1 of this Act as of the close of
 
 9 business on June 30, 2000, shall lapse into the general fund of
 
10 the State.
 
11      SECTION 6.  The attorney general shall consult with the
 
12 governor prior to entering into any settlement agreement for
 
13 awards exceeding $15,000 which are subject to legislative
 
14 approval.
 
15      SECTION 7.  The attorney general shall develop and implement
 
16 a procedure, no later than October 1, 1999, for advising its
 
17 client agencies on how to avoid future claims, by requesting
 
18 client agencies to take corrective action to eliminate or
 
19 mitigate those factors identified by the attorney general as
 
20 contributing to the State's negligence.  Based upon this advice,
 
21 the client agencies shall develop new policies or modify existing
 
22 practices to avoid repetition of similar claims.
 

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

 
 1      Any future claim for which money is required to satisfy a
 
 2 judgment or settlement agreement, as a result of a client
 
 3 agency's failure to modify existing practices and procedures,
 
 4 shall be funded through the agency's departmental allocation and
 
 5 not by general fund appropriations.
 
 6      SECTION 8.  If any provision of this Act, or the application
 
 7 thereof to any person or entity or circumstance is held invalid,
 
 8 the invalidity does not affect other provisions or applications
 
 9 of the Act which can be given effect without the invalid
 
10 provision or application, and to this end the provisions of this
 
11 Act are severable.
 
12      SECTION 9.  This Act shall take effect on July 1, 1999.