STAND. COM. REP. NO. 1365

Honolulu, Hawaii

RE: H.B. No. 356

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred H.B. No. 356, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require the Comptroller to annually adjust for inflation the threshold amount for which settlements of claims against the State must be approved by the Legislature.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services.

Your Committee finds that any claim 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 Committee has 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;

(4) Changing its effective date to July 1, 2019; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 356, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 356, H.D. 1, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

________________________________

LAURA H. THIELEN, Chair