STAND. COM. REP. NO. 640

Honolulu, Hawaii

RE: S.B. No. 124

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Government Operations and Judiciary, to which was referred S.B. No. 124 entitled:

"A BILL FOR AN ACT RELATING TO CLAIMS AGAINST THE STATE,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Increase the settlement and payment authority of the Risk Management Office;

(2) Require the Risk Management Office to publish and notify the legislature and attorney general of the adjusted maximum amounts; and

(3) Require the Risk Management Office to prepare annually a report of all claims arbitrated, compromised, or settled based on the adjusted amount determined by the Comptroller.

Your Committees received comments on this measure from the Department of Accounting and General Services.

Your Committees find that any claims above the Risk Management Office's settlement and payment authority is handled by the Department of the Attorney General. This measure will reduce some of the cases assigned to the Attorney General by increasing the settlement authority of the Risk Management Office, thereby promoting settlement and more efficient use of state resources.

Your Committees have amended this measure by:

(1) Increasing the Comptroller's settlement authority for automobile claims from $15,000 to $25,000;

(2) Increasing the limit on the Comptroller's settlement authority for tort claims from $10,000 to $25,000;

(3) Removing the requirement that the maximum amounts that may be paid from the state risk management revolving fund be linked to the United States Department of Labor Consumer Price Index for All Urban Consumers for Honolulu; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Government Operations and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 124, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 124, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ LAURA H. THIELEN, Chair