CONFERENCE COMMITTEE REP. NO. 44-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3041

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3041, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to appropriate funds for the payment of claims against the State, its officers, or its employees.

Your Committee on Conference finds that the timely passage of this measure will minimize the State's obligation to pay interest on those claim amounts.

Your Committee on Conference takes note of the six claims settled against the Department of Public Safety for a total of $6,365,540.00.  These claims resulted from egregious incidents that the State should ensure are not repeated.  Your Committee expects the Department of the Attorney General to provide thorough corrective guidance and oversight to the Department of Public Safety to eliminate or mitigate the factors that contributed to the State's negligence.

Your Committee on Conference has amended this measure by:

(1) Including various general fund appropriations to the Department of the Attorney General for the purpose of satisfying claims for legislative relief;

(2) Increasing the total general fund appropriation from $1,779,889.75 to $335,577,607.93 to settle eleven additional claims totaling $333,797,718.18, as follows:

(A) $47,718.18 for six miscellaneous claims;

(B) $225,000.00 to fund the settlement of Gallagher v. Lanihuli Community Development Corporation;

(C) $4,000,000.00 to fund the settlement of Mueller v. Department of Public Safety;

(D) $1,375,000.00 to satisfy the judgment in O'Malley v. State of Hawaii;

(E) $150,000.00 to satisfy the judgment in Roe v. State of Hawaii; and

(F) $328,000,000.00 to fund the settlement of Kalima v. State of Hawaii;

(3) Appropriating $138,000.00 from the state highway fund to settle one additional claim by Markel American Insurance Company (Maui Oil Company);

(4) Clarifying that the claims against the Agribusiness Development Corporation, Department of Land and Natural Resources, Department of Public Safety, and Hawaii State Public Charter School Commission shall be paid from general funds;

(5) Making the measure effective upon its approval; and

(6) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3041, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3041, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARK M. NAKASHIMA Co-Chair	____________________________ KARL RHOADS Chair
____________________________ SYLVIA LUKE Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair