STAND

STAND. COM. REP. NO.197

Honolulu, Hawaii

, 2003

RE: S.B. No. 1264

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1264 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 of this measure is to appropriate $560,928.23 from general funds, $850,000 from state highway funds, $27,500 from Department of Accounting and General Services program funds, and $20,000 from Department of Health program funds to pay claims against the State for overpayment of taxes, refunds, reimbursements, judgments, settlements, or other liabilities.

Your Committee received testimony supporting this measure from the Superintendent of Education. The Attorney General, Department of the Attorney General supported the bill and proposed amendments.

Your Committee finds that the sums appropriated in this bill will be used to satisfy claims against the State. Timely passage will serve to minimize interest on those amounts for which interest is accruing.

Your Committee questions, however, a $70,591.07 discrepancy in two federal court cases. The Arakaki v. State of Hawaii case preceded to judgment and in that case, attorney fees awarded by Judge Gilmore were less than in the Smith v. State of Hawaii, Campaign Spending Commission case that settled. The Attorney General's Office committed to providing justification explaining the disparity. Based on this disparity, and until justification is received, your Committee amended the bill by:

(1) Reducing the appropriation amount in Smith v. State of Hawaii, Campaign Spending Commission, et al. from $126,085.15 to $63,042.58;

(2) Adding an additional appropriation from the general fund in the amount of $70,000 to pay the settlement amount in Morrison v. State of Hawaii, et al.;

(3) Amending the subtotals and totals for section one appropriations to reflect the reduction and addition;

(4) Specifying that the source of the $20,000 appropriation to pay the settlement claim from Aguinaldo v. State of Hawaii, et al. is the Developmental Disabilities program (HTH 501);

(5) Adding a new section five that sets forth a $4,133.25 judgment in the case of Maalaea Slip 69, Inc. dba Rascal Charters v. Department of Land and Natural Resources from an unspecified department program; and

(6) Renumbering the remaining bill sections.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1264, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1264, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Hawaiian Affairs,

		____________________________ COLLEEN HANABUSA, Chair