HOUSE OF REPRESENTATIVES

H.B. NO.

356

THIRTIETH LEGISLATURE, 2019

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CLAIMS AGAINST THE STATE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Section 41D-3, Hawaii Revised Statutes, is amended to read as follows:

"41D-3 Adjustment of claims against the State. (a) The attorney general may review any claim. The attorney general may refer claims to the comptroller for informal resolution.

(b) All claims against the State that are within the purview of section 41D-8 shall be reviewed in the first instance by the comptroller for informal resolution as provided in this section.

[(c)] (1) The comptroller may compromise or settle a claim within the purview of section 41D-8 for an amount not exceeding $15,000, or, after June 30, 2020, the maximum amount determined under subsection (c) and the comptroller may pay the claim without review by the attorney general.

[(d)] (2) The comptroller may compromise or settle and pay a tort claim not within the purview of section 41D-8 for an amount not exceeding $10,000 [or less] or, after June 30, 2020, the maximum amount determined under subsection (c), without the necessity of court approval[, and the comptroller may pay the claim].

(c) The comptroller shall determine the maximum amounts that may be paid from the state risk management revolving fund for claims against the State that are arbitrated, compromised, or settled by the comptroller or the attorney general pursuant to this section or section 662-11, respectively. The comptroller shall adjust the maximum amounts each year by applying to the base amount the annual increase in the average United States Department of Labor Consumer Price Index for All Urban Consumers for Honolulu as released annually in February for the second half of the previous calendar year. The comptroller shall use the applicable adjusted maximum amount for each year as the base amount for the next year. The adjusted maximum amounts for each year shall be effective no later than July 1 of that year.

For the adjusted maximum amounts applicable as of July 1, 2020, the base amount shall be:

(1) $         for claims within the purview of section 41D-8 and compromised or settled by the comptroller pursuant to subsection (b)(1);

(2) $         for claims not within the purview of section 41D-8 and compromised or settled by the comptroller pursuant to subsection (b)(2); and

(3) $         for claims arbitrated, compromised, or settled by the attorney general pursuant to section 662-11.

(d) By June 15 of each year, the comptroller shall publish and notify the legislature and the attorney general of the adjusted maximum amounts that will be effective on July 1 of that year. The first publication and notification shall be issued by June 15, 2020, for the maximum adjusted amounts that will be effective on July 1, 2020.

(e) Upon referral by the comptroller, the attorney general, in the attorney general's discretion, shall make determinations of whether a claim would or would not be within the purview of section 41D-8 for purposes of [subsections (c) and (d).] subsection (b).

(f) If the tort claim cannot be resolved informally as set forth in [subsections (c) and (d),] subsection (b), the comptroller promptly shall inform the attorney general.

(g) All of the efforts of the comptroller or the comptroller's delegate under this section shall be "compromise negotiations" within the meaning of rule 408, Hawaii Rules of Evidence, as set forth in section 626-1.

(h) Claims compromised or settled under this section shall be paid from the state risk management revolving fund."

SECTION 2. Section 41D-4, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The comptroller shall prepare, for each fiscal year, a report of all claims arbitrated, compromised, or settled [for $10,000 or less] and paid from the state risk management revolving fund[.] as provided in section 41D-3. The report shall be submitted to the legislature twenty days prior to the commencement of the regular session next succeeding the year for which the report is made."

SECTION 3. Section 662-11, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Claims arbitrated, compromised, or settled by the attorney general for an amount not exceeding $10,000 [or less] or, after June 30, 2020, the maximum amount determined under section 41D-3, shall be paid from the state risk management revolving fund. Claims arbitrated, compromised, or settled by the attorney general for more than [$10,000] that amount shall be paid only after funds are appropriated by the legislature for the payment of those claims."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2030.



 

Report Title:

Claims Against the State; Risk Management Fund; Inflation

 

Description:

Requires the Comptroller to annually adjust the threshold amount for which settlements for claims against the State must be approved by the Legislature for inflation. (HB356 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.