SB 2311: Claims Against the State; Attorney General; Reports

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 37-77, Hawaii Revised Statutes, is amended to read as follows:

     "§37-77  Claims for legislative relief.  All claims for refunds, reimbursements, or other payments, authorization for which is sought from the legislature, shall, as a condition to their being considered by the legislature, be filed with the attorney general together with all data and documents in support thereof within six years from the date on which the claim for payment matured.  Claims that have exceeded the time limitations of section 40-68 may not be presented under this section.  In the absence of a showing of sufficient reason therefor, failure to comply with this paragraph shall be deemed sufficient cause for refusal of the legislature to consider the claims.

     The attorney general shall, immediately upon receipt thereof, refer any claim and data so received by the attorney general to the agency concerned or the comptroller, and the agency to which the reference is made or the comptroller shall immediately investigate the claim, secure all available data and documents bearing thereon, and refer the same back to the attorney general with its recommendations thereon.  The attorney general shall review the claim and make a recommendation to the legislature as to the disposition of the claim.

     The attorney general shall, within five days after the opening of the session, transmit to the legislature the claims which are then recommended for approval in an appropriate legislative bill form, together with an explanation for each claim.  Additional recommendations for approval may be transmitted later in the session.  All claims for which there is a recommendation of denial shall also be reported to the legislature with an explanation.  The data and documents submitted by claimants shall be available for inspection by the legislature.

     The attorney general shall, within five days after the opening of the session, transmit to the speaker of the house of representatives, president of the senate, and chairs of the house and senate judiciary committees a report that provides a good faith estimate of each possible judgment against the State that has not yet settled.  The report shall be deemed confidential and privileged communication to the legislature and shall not be disclosed pursuant to sections 92F-13 and 92F‑19)(b).

     The attorney general shall consult with the governor prior to entering into any settlement agreement for awards exceeding $75,000 that are subject to legislative approval."

     SECTION 2.  Section 37-77.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The attorney general shall submit a report to the speaker of the house of representatives, the president of the senate, and the chairs of the house and senate judiciary committees no later than [twenty] forty days prior to the convening of each regular legislative session describing the claims and the attendant circumstances therein and containing the advice for corrective action rendered to the agency.  The report shall also contain [the remedial measures which the attorney general shall take or recommended that the legislature take if an agency fails to take corrective action within a reasonable period of time.], for each settled claim for which payment is sought, the following information:

     (1)  The action taken by the employee or department that led to the claim;

     (2)  The attorney general's recommended action to prevent similar types of claims from occurring in the future;

     (3)  After consulting with the department, the attorney general's recommended timeline to complete the recommended action;

     (4)  Whether the department implemented the recommended action in a timely fashion and any responses from the agency to the attorney general's recommended action; and

     (5)  The remedial measures that the attorney general takes or recommends the legislature take if an agency fails to take corrective action within a reasonable period of time.

     The attorney general shall submit a report to the speaker of the house of representatives, the president of the senate, and the chairs of the house and senate judiciary committees no later than forty days prior to the convening of the regular session of 2027, and prior to each regular session every five years thereafter, on whether there were any further incidents that occurred in an agency that led to a claim after the actions were implemented and why recommended actions were inadequate to prevent the incident.

     The [report] reports shall be deemed a confidential and privileged communication to the legislature and shall not be disclosed pursuant to sections 92F-13 and 92F-19(b)."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Claims Against the State; Attorney General; Reports

Description:

Prohibits claims for refunds, reimbursements, or other payments, authorization for which is sought from the Legislature that exceed the time limitations of section 40-68, Hawaii Revised Statutes, from being claimed.  Requires the Attorney General to submit a confidential report within five days after the opening of a Regular Session to the Speaker of the House of Representatives, President of the Senate, Chairs of the House and Senate Judiciary Committees that provides a good faith estimate of each possible judgment against the State that has not yet settled.  Requires the Attorney General to submit a report every five years to the Legislature containing further incidents that occurred in an agency that led to a claim.  (SD1)

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

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 37-77, Hawaii Revised Statutes, is amended to read as follows:

     "§37-77  Claims for legislative relief.  All claims for refunds, reimbursements, or other payments, authorization for which is sought from the legislature, shall, as a condition to their being considered by the legislature, be filed with the attorney general together with all data and documents in support thereof within six years from the date on which the claim for payment matured.  Claims that have exceeded the time limitations of section 40-68 may not be presented under this section.  In the absence of a showing of sufficient reason therefor, failure to comply with this paragraph shall be deemed sufficient cause for refusal of the legislature to consider the claims.

     The attorney general shall, immediately upon receipt thereof, refer any claim and data so received by the attorney general to the agency concerned or the comptroller, and the agency to which the reference is made or the comptroller shall immediately investigate the claim, secure all available data and documents bearing thereon, and refer the same back to the attorney general with its recommendations thereon.  The attorney general shall review the claim and make a recommendation to the legislature as to the disposition of the claim.

     The attorney general shall, within five days after the opening of the session, transmit to the legislature the claims which are then recommended for approval in an appropriate legislative bill form, together with an explanation for each claim[.] and a total dollar value of possible judgments against the State that have not yet settled.  Additional recommendations for approval may be transmitted later in the session.  All claims for which there is a recommendation of denial shall also be reported to the legislature with an explanation.  The data and documents submitted by claimants shall be available for inspection by the legislature.

     The attorney general shall consult with the governor prior to entering into any settlement agreement for awards exceeding $75,000 that are subject to legislative approval."

     SECTION 2.  Section 37-77.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The attorney general shall submit a report to the speaker of the house of representatives, the president of the senate, and the chairs of the house and senate judiciary committees no later than twenty days prior to the convening of each regular legislative session describing the claims and the attendant circumstances therein and containing the advice for corrective action rendered to the agency.  The report shall also contain [the remedial measures which the attorney general shall take or recommended that the legislature take if an agency fails to take corrective action within a reasonable period of time.], for each settled claim for which payment is sought, the following information:

     (1)  The action taken by the employee or department that lead to the claim;

     (2)  The attorney general's recommended action to prevent similar types of claims from occurring in the future;

     (3)  After consulting with the department, the attorney general's recommended timeline to complete the recommended action;

     (4)  Whether the department implemented the recommended action in a timely fashion and any responses from the agency to the attorney general's recommended action; and

     (5)  The remedial measures that the attorney general takes or recommends the legislature take if an agency fails to take corrective action within a reasonable period of time.

     The attorney general shall submit a report to the speaker of the house of representatives, the president of the senate, and the chairs of the house and senate judiciary committees no later than twenty days prior to the convening of the regular session of 2027, and prior to each regular session every five years thereafter, on whether there were any further incidents that occurred in an agency that led to a claim after the actions were implemented and why recommended actions were inadequate to prevent the incident.

  The [report] reports shall be deemed a confidential and privileged communication to the legislature and shall not be disclosed pursuant to sections 92F-13 and 92F-19(b)."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Claims Against the State; Attorney General; Report

Description:

Prohibits claims for refunds, reimbursements, or other payments, authorization for which is sought from the Legislature that exceed the time limitations of section 40-68, Hawaii Revised Statutes, from being claimed.  Requires the Attorney General to include in the Attorney General's annual report of claims recommended for approval a total dollar amount of possible judgments against the State that have not yet settled.  Requires the Attorney General's report to the Legislature describing the claims against the State to include additional information.  Requires the Attorney General to submit a report every five years to the Legislature containing further incidents that occurred in an agency that led to a claim.

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

STAND. COM. REP. NO. 2438

Honolulu, Hawaii

RE:     S.B. No. 2311

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 2311 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:

     (1)  Prohibit claims for refunds, reimbursements, or other payments, authorization for which is sought from the Legislature that exceed the time limitation of section 40-68, Hawaii Revised Statutes, from being claimed;

     (2)  Require the Attorney General to include in the Attorney General's annual legislative bill of claims recommended for approval a total dollar amount of possible judgments against the State that have not yet settled;

     (3)  Require the Attorney General's report to the Legislature describing the claims against the State to include additional information; and

     (4)  Require the Attorney General to submit a report every five years to the legislature containing further incidents that occurred in an agency that led to a claim.

     Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that the legislature is required to address two types of claims for relief against the State: judgments or settlements in cases that have been brought in courts and claims for payment of outstanding or uncashed checks.  Your Committee further finds that outstanding or uncashed checks are presumed paid within a one-year period after issuance.  However, if the check is not submitted for payment, the claimant has an additional window in which the check is required to be paid.  Your Committee also finds that in some instances, the administrative process for this category of payments involves payment from a capped trust fund, and if a large check is presented for payment, the fund may be depleted.  Your Committee additionally finds that, in these instances, it is recommended that the claimant present the claim through the legislative relief process to ensure that adequate funds are available in the trust fund to pay out on other claims.  Your Committee finds that when a claimant is referred to the Legislature for relief, the claimant is given another opportunity to claim payment from the State despite not having submitted the check in a timely fashion twice before.  This measure will provide the Legislature with additional, necessary information about cases involving judgments and settlements to better understand the depth of the potential liability of the State and the challenges facing agencies in implementing remedial measures.

     Your Committee notes the concern raised by the Department of the Attorney General that the Department cannot accurately determine the total value dollar of judgments against the State that have not yet been settled.  Your Committee further notes the concern raised by the Department of the Attorney General that even if it were possible for the Department to determine which cases and claims it believes are likely to settle or be reduced to a judgment, such a list should not be made publicly available as the list may be interpreted or viewed as a list of cases that the Department believes are likely to have unfavorable outcomes, significantly compromising the Department's ability to obtain favorable settlements and defend the State in those cases.

     Accordingly, Your Committee has amended this measure by:

     (1)  Deleting language that would have required the Department of the Attorney General to include a total dollar value of possible judgments in the legislative bill of claims;

     (2)  Requiring the Attorney General to transmit to the Speaker of the House of Representatives, President of the Senate, and Chairs of the House and Senate Judiciary Committees a confidential report that provides a good faith estimate of each possible judgment against the State that has not yet settled;

     (3)  Changing the deadline of the Attorney General's report describing the claims and the attendant circumstances and advice for corrective action rendered to the agencies from twenty days prior to the convening of each Regular Session to forty days;

     (4)  Changing the deadline of the Attorney General's report containing further incidents that occurred in an agency that led to a claim from twenty days to forty days prior to the convening of the Regular Session and each regular session every five years thereafter; 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 Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2311, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2311, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary,