REPORT TITLE:
Claims Against the State


DESCRIPTION:
Appropriates funds for the relief of individuals' claims against
the State. (SD1)

 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
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 

 
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 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 Freitas v. State of Hawaii                         $   125,000.00
19 Civil No. 97-4242-10, First Circuit                    Settlement
20 
21 Jordan v. State of Hawaii                          $    20,000.00
22 Civil No. 96-0304, Fifth Circuit                       Settlement
23 
24 Kautz v. University of Hawaii, et al.              $    50,000.00
25 Civil No. 98-1478-03, First Circuit and                Settlement
26 Civil No. 96-01012, USDC
27 
28 Lee v. Su, et al.                                  $   115,000.00
29 Civil No. 97-2272-06, First Circuit                    Settlement
30 
31 Matsushima v. State of Hawaii                      $    16,000.00
32 Civil No. 97-2272-06, First Circuit                    Settlement
33 
34 Miles v. State, et al.                             $    20,000.00
35 Civil No. 96-4238-10, First Circuit                    Settlement
36 
37 Morales v. State of Hawaii, et al.                 $    15,000.00
38 Civil No. 96-3401-08, First Circuit                    Settlement
39 
40 Napeahi v. Wilson, et al.                          $   203,500.00
41 Civil No. 85-9523 DAE, U.S.D.C.                        Settlement
42      Amount of Settlement:   $185,000.00
43      Interest at 10%:        $ 18,500.00
44 
45 O'Donnell v. The University of Hawaii, et al.      $    27,000.00
46 Civil No. 93-3019-08, First Circuit                    Settlement
47 
48 Ome v. State of Hawaii                             $   175,000.00
49 Civil No. 97-3464-08, First Circuit                    Settlement

 
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 1 
 2 Perez v. State                                     $    35,000.00
 3 Civil No. 93-0611-02, First Circuit                    Settlement
 4 
 5 Piko v. State of Hawaii, et al.                    $   120,000.00
 6 Civil No. 96-1927-05, First Circuit                    Settlement
 7 
 8 Prevost v. State of Hawaii                         $    63,115.78
 9 Civil No. 97-2227-05, First Circuit                      Judgment
10      Amount of Judgment:          $60,400.78
11      Interest at 4% from 6/17/98: $ 2,715.00
12 
13 Silva v. State of Hawaii, et al.                   $    26,310.00
14 Civil No. 93-3361-08, First Circuit                    Settlement
15      Amount of Settlement:       $25,000.00
16      Interest at 4% from 4/1/98: $ 1,310.00
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 Weldon v. Murray, et al.                           $    50,000.00
25 Civil No. 96-4062-10, First Circuit                    Settlement
26 
27 Witsell v. State of Hawaii                         $    25,000.00
28 Civil No. 96-0401-01, First Circuit                    Settlement
29 
30 
31 MISCELLANEOUS CLAIMS:
32 
33 Carlos Angora                                      $     5,385.68
34 
35 Richard K. Blaisdell                               $       597.60
36 
37 Gem of Hawaii, Inc.                                $       805.96
38 
39 Kepuhi Partnership                                 $     1,042.28
40 
41 Henry Marion                                       $       858.04
42 
43 Leora Murakami                                     $       379.00
44 
45 SMS Research and Marketing                         $     3,950.00
46 
47 Ethel Tomoguchi                                    $       908.41

 
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 1 
 2 Daniel C. Malakie                                  $       640.76
 3 
 4 Evon K. Kaawa                                      $        87.66
 5 
 6 Shirley L. Wong                                    $       107.40
 7 
 8 Steven S. Yamaki                                   $        91.47
 9 
10 Jo Ann Loa                                         $       171.60
11 
12 Leighton Y.H. and Valerie Ah Cook                  $       334.00
13 
14 Alison Johns                                       $       200.00
15 
16 Estate of Yaeko Fasone                             $       258.00
17 
18 Lydia T. Auyong                                    $       167.40
19 
20 Jody K. Uchida                                     $       107.46
21 
22 David G. Yukimura                                  $     1,121.00
23 
24      SECTION 2.  Section 37-77, Hawaii Revised Statutes, is
 
25 amended to read as follows: 
 
26      "§37-77  Claims for legislative relief.  All claims for
 
27 refunds, reimbursements, or other payments, authorization for
 
28 which is sought from the legislature, shall, as a condition to
 
29 their being considered by the legislature, be filed with the
 
30 attorney general together with all data and documents in support
 
31 thereof within five years from the date on which the claim for
 
32 payment matured.  In the absence of a showing of sufficient
 
33 reason therefor, failure to comply with this paragraph shall be
 
34 deemed sufficient cause for refusal of the legislature to
 
35 consider the claims.
 

 
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 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 3.  The sums hereinabove appropriated may be paid to
 
21 the respective persons, or for the satisfaction or settlement of
 
22 the respectively identified cases, and in the several amounts
 
23 hereinabove set forth or in lesser amounts deemed appropriate,
 

 
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 1 upon warrants or checks issued by the comptroller of the State:
 
 2 (1) upon vouchers approved by the director of taxation as to
 
 3 claims for refunds of taxes, and (2) upon vouchers approved by
 
 4 the attorney general as to all other claims.
 
 5      SECTION 4.  Notwithstanding the sums hereinabove
 
 6 appropriated as interest upon judgments against the State,
 
 7 payment of interest shall be limited to the period from the date
 
 8 of judgment, if applicable, to thirty days after the effective
 
 9 date of this Act, as provided in section 662-8, Hawaii Revised
 
10 Statutes, for those cases to which that statute applies.
 
11      SECTION 5.  All unexpended and unencumbered balances of the
 
12 appropriations made by section 1 of this Act as of the close of
 
13 business on June 30, 2000, shall lapse into the general fund of
 
14 the State.
 
15      SECTION 6.  The attorney general shall consult with the
 
16 governor prior to entering into any settlement agreement that is
 
17 subject to legislative approval.
 
18      SECTION 7.  The attorney general shall develop and implement
 
19 a procedure for advising its client agencies on how to avoid
 
20 future claims, by requesting client agencies to take corrective
 
21 action to eliminate or mitigate those factors identified by the
 
22 attorney general as contributing to the State's negligence.
 
23 Based upon this advice, the client agencies shall develop new
 

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

 
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