REPORT TITLE:
Claims Against the State


DESCRIPTION:
Makes appropriation to pay claims against the State.  (HB989 SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        989
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 2
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 Echiberi v. State of Hawaii                        $    24,000.00
28 Civil No. 97-1800-05, First Circuit                    Settlement
29 
30 Edwards v. State of Hawaii                         $    84,320.00

 
Page 2                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1 Civil No. 96-01198 DAE, USDC                           Settlement
 2 
 3 Environment Hawaii, et al. v. Michael              $    37,354.64
 4 D. Wilson, et al.                                       Judgement
 5 Civil No. 97-2404-06, First Circuit
 6 
 7 Freitas v. State of Hawaii                         $   125,000.00
 8 Civil No. 97-4242-10, First Circuit                    Settlement
 9 
10 Gonsalves v. State of Hawaii, et al.               $    16,000.00
11 Civil No. 98-0485(1), Second Circuit                   Settlement
12 
13 Kautz v. University of Hawaii, et al.              $    50,000.00
14 Civil No. 98-1478-03, First Circuit and                Settlement
15 Civil No. 96-01012, USDC
16 
17 King v. State of Hawaii                            $    20,000.00
18 Civil No. 93-2919-07, First Circuit                    Settlement
19 
20 Matias v. Giacobetti, et al.                       $    25,000.00
21 Civil No. 98-0218-01, First Circuit                    Settlement
22 
23 Miles v. State, et al.                             $    20,000.00
24 Civil No. 96-4238-10, First Circuit                    Settlement
25 
26 Morales v. State of Hawaii, et al.                 $    15,000.00
27 Civil No. 96-3401-08, First Circuit                    Settlement
28 
29 Napeahi v. Wilson, et al.                          $   203,500.00
30 Civil No. 85-9523 DAE, U.S.D.C.                        Settlement
31      Amount of Settlement:        $185,000.00
32      Interest at 10%:             $ 18,500.00
33 
34 O'Donnell v. The University of Hawaii, et al.      $    27,000.00
35 Civil No. 93-3019-08, First Circuit                    Settlement
36 
37 Ome v. State of Hawaii                             $   175,000.00
38 Civil No. 97-3464-08, First Circuit                    Settlement
39 
40 Pangilinan v. State                                $    20,000.00
41 Civil No. 96-4956-12, First Circuit                    Settlement
42 
43 Perez v. State                                     $    35,000.00
44 Civil No. 93-0611-02, First Circuit                    Settlement
45 
46 Piko v. State of Hawaii, et al.                    $   120,000.00

 
Page 3                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1 Civil No. 96-1927-05, First Circuit                    Settlement
 2 
 3 Prevost v. State of Hawaii                         $    63,115.78
 4 Civil No. 97-2227-05, First Circuit                      Judgment
 5      Amount of Judgment:          $ 60,400.78
 6      Interest at 4% from 6/17/98: $  2,715.00
 7 
 8 Quiaoit v. State of Hawaii                         $   308,593.14
 9 Civil No. 94-3714-09, First Circuit                      Judgment
10      Amount of Judgment:          $303,373.17
11      Interest at 4% from 7/11/97: $  5,219.97
12 
13 Saunders, et al. v. Knudsen, et al.                $    80,000.00
14 Civil No. 97-01038DAE, USDC                            Settlement
15 
16 Silva v. State of Hawaii, et al.                   $    26,310.00
17 Civil No. 93-3361-08, First Circuit                    Settlement
18      Amount of Settlement:        $ 25,000.00
19      Interest at 4% from 4/1/98:  $  1,310.00
20 
21 Victorino v. State of Hawaii, et al.               $    16,666.66
22 Civil No. 96-0635(1), Second 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 Harold Masumoto                                    $   269,792.50
44 
45 Leora Murakami                                     $       379.00
46 

 
Page 4                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1 SMS Research and Marketing                         $     3,950.00
 2 
 3 Ethel Tomoguchi                                    $       908.41
 4 
 5 Daniel C. Malakie                                  $       640.76
 6 
 7 Evon K. Kaawa                                      $        87.66
 8 
 9 Shirley L. Wong                                    $       107.40
10 
11 Steven S. Yamaki                                   $        91.47
12 
13 Jo Ann Loa                                         $       171.60
14 
15 Leighton Y.H. and Valerie Ah Cook                  $       334.00
16 
17 Alison Johns                                       $       200.00
18 
19 Estate of Yaeko Fasone                             $       258.00
20 
21 Lydia T. Auyong                                    $       167.40
22 
23 Jody K. Uchida                                     $       107.46
24 
25 David G. Yukimura                                  $     1,121.80
26 
27 Daniel and Carol Eckstein                          $     2,179.97
28 
29      SECTION 2.  The following sums of money are appropriated
 
30 out of the state highway fund for the purpose of satisfying
 
31 claims for legislative relief as to the following named persons,
 
32 firms, corporations, and entities, for claims against the State
 
33 or its officers or employees for overpayment of taxes, or for
 
34 refunds, reimbursements, payments of judgments or settlements, or
 
35 other liabilities, in the amount set forth opposite their names:
 
36 JUDGMENTS AGAINST THE STATE                             AMOUNT
37 AND SETTLEMENTS OF CLAIMS:
38 
39 Casteel v. State of Hawaii                         $   240,000.00

 
Page 5                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1 Civil No. 96-0091(2), Second Circuit                   Settlement
 2 
 3 Coveyou v. State of Hawaii, et al.                 $   115,861.00
 4 Civil No. 96-0870-03, First Circuit                    Settlement
 5      Amount of Settlement:        $110,000.00
 6      Interest at 4% from 4/1/98:  $  5,861.00
 7 
 8 Cunningham v. State of Hawaii, et al.              $   200,000.00
 9 Civil No. 96-3816-09, First Circuit                    Settlement
10 
11 DesMarais v. Lau, et al.                           $    15,000.00
12 Civil No. 93-2040-05, First Circuit                    Settlement
13 
14 Jordan v. State of Hawaii                          $    20,000.00
15 Civil No. 96-0304, Fifth Circuit                       Settlement
16 
17 Lee v. Su, et al.                                  $   115,000.00
18 Civil No. 97-2272-06, First Circuit                    Settlement
19 
20 Matsushima v. State of Hawaii                      $    16,000.00
21 Civil No. 97-2272-06, First Circuit                    Settlement
22 
23 Singleton v. State of Hawaii, et al.               $   160,000.00
24 Civil No. 97-0091K, Third Circuit                      Settlement
25 
26 Trendler v. State of Hawaii, et al.                $ 2,000,000.00
27 Civil No. 95-0924(3), Second Circuit                   Settlement
28 
29 Trim v. Adams, et al.                              $    95,000.00
30 Civil No. 95-4339-11, First Circuit                    Settlement
31 
32      SECTION 3.  The sums hereinabove appropriated may be paid to
 
33 the respective persons, or for the satisfaction or settlement of
 
34 the respectively identified cases, and in the several amounts
 
35 hereinabove set forth or in lesser amounts deemed appropriate,
 
36 upon warrants or checks issued by the comptroller of the State:
 
37 (1) upon vouchers approved by the director of taxation as to
 
38 claims for refunds of taxes, and (2) upon vouchers approved by
 

 
 
Page 6                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1 the attorney general as to all other claims.
 
 2      SECTION 4.  Notwithstanding the sums hereinabove
 
 3 appropriated as interest upon judgments against the State,
 
 4 payment of interest shall be limited to the period from the date
 
 5 of judgment, if applicable, to thirty days after the effective
 
 6 date of this Act, as provided in section 662-8, Hawaii Revised
 
 7 Statutes, for those cases to which that statute applies.
 
 8      SECTION 5.  All unexpended and unencumbered balances of the
 
 9 appropriations made by sections 1 and 2 of this Act as of the
 
10 close of business on June 30, 2000, shall lapse into the fund
 
11 from which appropriated.
 
12      SECTION 6.  Section 37-77, Hawaii Revised Statutes, is
 
13 amended to read as follows: 
 
14      "37-77  Claims for legislative relief.  All claims for
 
15 refunds, reimbursements, or other payments, authorization for
 
16 which is sought from the legislature, shall, as a condition to
 
17 their being considered by the legislature, be filed with the
 
18 attorney general together with all data and documents in support
 
19 thereof within six years from the date on which the claim for
 
20 payment matured.  In the absence of a showing of sufficient
 
21 reason therefor, failure to comply with this paragraph shall be
 
22 deemed sufficient cause for refusal of the legislature to
 
23 consider the claims.
 

 
Page 7                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 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 7.  The attorney general shall consult with the
 
21 governor prior to entering into any settlement agreement for
 
22 awards exceeding $15,000 which are subject to legislative
 
23 approval.
 

 
Page 8                                                     989
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        

 
 1      SECTION 8.  The attorney general shall develop and implement
 
 2 a procedure, no later than October 1, 1999, for advising its
 
 3 client agencies on how to avoid future claims, by requesting
 
 4 client agencies to take corrective action to eliminate or
 
 5 mitigate those factors identified by the attorney general as
 
 6 contributing to the State's negligence.  Based upon this advice,
 
 7 the client agencies shall develop new policies or modify existing
 
 8 practices to avoid repetition of similar claims.
 
 9      Any future claim for which money is required to satisfy a
 
10 judgment or settlement agreement, as a result of a client
 
11 agency's failure to modify existing practices and procedures,
 
12 shall be funded through the agency's departmental allocation and
 
13 not by general fund appropriations.
 
14      SECTION 9.  If any provision of this Act, or the application
 
15 thereof to any person or entity or circumstance is held invalid,
 
16 the invalidity does not affect other provisions or applications
 
17 of the Act which can be given effect without the invalid
 
18 provision or application, and to this end the provisions of this
 
19 Act are severable.
 
20      SECTION 10.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 11.  This Act shall take effect on July 1, 1999.