STAND. COM. REP. NO. 1583

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 989
                                        H.D. 1
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 989, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE RELIEF OF CERTAIN
     PERSONS' CLAIMS AGAINST THE STATE AND PROVIDING
     APPROPRIATIONS THEREFOR,"

begs leave to report as follows:

     The purpose of this bill is to appropriate general funds to
pay claims for legislative relief, judgments, settlements, and
miscellaneous claims against the State.

     Your Committee has amended this measure by removing claims
totalling $2,976,861 from the total general fund appropriation,
and by instead appropriating the same amount of $2,976,861 out of
the state highway fund to pay for those claims.

     Your Committee has also amended this measure by adding a
miscellaneous claim for attorneys fees incurred in State of
Hawaii v. W.H. McVay et al Civil No. 91-4097-12, and by
appropriating an additional $269,792.50 out of general funds to
pay for the claim.

     Your Committee finds that a suit was filed against Harold
Masumoto, the State, and others, regarding condemnation of a
feedlot and other parcels in Kapolei.  The State eventually

 
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                                   STAND. COM. REP. NO. 1583
                                   Page 2


settled with Hawaii Meat Company and Mr. Masumoto in his official
capacity was dismissed from the suit, but he was not dismissed in
his individual capacity.  To this end, Mr. Masumoto hired a
private attorney to defend him in this litigation.  In November
1998, the remaining litigation was concluded without any findings
of Mr. Masumoto acting illegally, maliciously, or for corrupt
motives.  The Department of the Attorney General, finding that
Mr. Masumoto was at all times acting within the scope of his
duties and in furtherance of the best interests of the State as
he understood it, recommended that his attorneys' fees and costs
be paid as a claim against the State.  Your Committee concurs.

     Your Committee finds that the judgments and settlements as
represented in this measure have been evaluated and recommended
by the Department of the Attorney General.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B.
No. 989, H.D. 1, S.D. 1, as amended herein, and recommends that
it pass Third Reading in the form attached hereto as H.B.
No. 989, H.D. 1, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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