STAND. COM. REP. NO. 3718

Honolulu, Hawaii

RE: H.B. No. 2340

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2340, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT MAKING APPROPRIATIONS FOR CLAIMS AGAINST THE STATE, ITS OFFICERS, OR ITS EMPLOYEES,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate moneys to satisfy claims against the State, its officers, and its employees.

Your Committee received written comments in support of this measure from the Department of the Attorney General, Department of Corrections and Rehabilitation, Department of Education, Department of Human Services, Department of Land and Natural Resources, and Department of Transportation.

Your Committee received written comments on this measure from the Department of Human Resources Development.

Your Committee finds that the State has a responsibility to promptly satisfy all claims against the State upon the resolution of those claims. Your Committee further finds that the timely passage of this measure will help to minimize the State's obligation to pay interest that accrues on the claim amounts.

Your Committee has amended this measure by:

(1) Making additional appropriations of:

(A) $800,000.00 in general funds for the settlement in the case of Schweitzer v. State of Hawaii;

(B) $1,000,000.00 in general funds for the settlement in the case of A.B. v. Department of Education;

(C) $1,800,000.00 in general funds for the settlement in the case of C.K., J.M., and T.M. v. Department of Human Resources;

(D) $35,961.64 out of the state highway fund for the settlement in the case of Allstate Insurance Company v. State of Hawaii Department of Transportation; and

(E) $265.00 in general funds for a miscellaneous claim by Jessie J. McMorrow and Kevin B. McMorrow;

(2) Amending the payment requirements for the settlement in the case of Courtney Ledford v. Ethan Ferguson, et al., by:

(A) Changing the amount appropriated to the Department of the Attorney General to satisfy the claim from $750,000.00 to $1,250,000.00; and

(B) Deleting the requirement that $500,000.00 of the claim settlement be equally apportioned and paid from the available general funds appropriated by Act 164, Session Laws of Hawaii 2023, to the Department of Human Resources Development and Department of Land and Natural Resources;

(3) Amending the payment requirements for the settlement in the case of Leinette Reyes, et al. v. Eric Tanaka, by:

(A) Changing the amount appropriated to the Department of the Attorney General for the settlement of the claim from $1,200,000.00 to $2,000,000.00; and

(B) Deleting the requirement that $800,000.00 of the claim settlement be paid from the available general funds appropriated by Act 164, Session Laws of Hawaii 2023, to the Department of Public Safety/Corrections and Rehabilitation;

(4) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(5) Making a technical nonsubstantive amendment for the purpose of consistency.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2340, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2340, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair