SB 796: RELATING TO CLAIMS AGAINST THE STATE.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-11
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
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. (SD1)
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 list of possible claims 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.
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THE SENATE |
S.B. NO. |
796 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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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 2026, 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. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
796 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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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 list of possible claims 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 and a timeline for the action to be implemented;
(3) 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
(4) 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 2026, 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.
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INTRODUCED BY: |
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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 list of possible claims 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.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Feb 12, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 12, 2025 | Reported from JDC (Stand. Com. Rep. No. 313) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 5, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Jan 29, 2025 | The committee(s) on JDC has scheduled a public hearing on 02-05-25 9:15AM; Conference Room 016 & Videoconference. |
| Jan 23, 2025 | Referred to JDC, WAM. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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| Feb 5, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
STAND. COM. REP. NO. 313
Honolulu, Hawaii
RE: S.B. No. 796
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred S.B. No. 796 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 limitations of section 40-68, Hawaii Revised Statutes, from being claimed;
(2) Require the Attorney General to include in the Attorney General's annual report of claims recommended for approval a list of possible claims 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: judgements or settlements in cases that have been brought in courts and claims for payment of outstanding or uncashed checks.
For outstanding or uncashed checks, under section 40-68, Hawaii Revised Statutes, a check is 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. In some instances, the administrative process for this category of payments involves payments from a capped trust fund, and if a large check is presented for payment, the fund may be depleted. Your Committee further finds that, in those instances, it is recommended that the claimant present the claim through the legislative relief process to ensure there are adequate funds in the trust fund to pay out on other claims.
Your Committee further finds that even if a claimant's claim for relief exceeds the statutory time for payment on an outstanding check, that claimant is then referred to the legislature for relief under section 37-77, Hawaii Revised Statutes, which has a longer period in which the claim may be submitted. In other words, a claimant is given another bite at the apple despite not having submitted the check in a timely fashion twice before. This measure will prohibit a claimant from submitting a claim for reissuance under section 37-77, Hawaii Revised Statutes, that has already expired under section 40-68, Hawaii Revised Statutes, while also providing the Legislature with additional, necessary information about cases involving judgements and settlements to better understand the depth of the potential liability of the State and the challenges facing state agencies in ensuring that remedial actions are being taken and effective.
Your Committee notes the concerns raised by the Department of the Attorney General. Specifically, that requiring the Attorney General to include a list of possible claims against the State that have not yet settled would require the Department of the Attorney General to provide a list of all lawsuits and claims currently pending at the Department, which would be of little to no value to the Legislature.
Your Committee further notes the Department of the Attorney General's concerns regarding language that would require the Attorney General to set timelines for departments to implement the Attorney General's recommended actions and determine whether each department's implementation of the recommended actions was timely. Your Committee notes that the Attorney General is not authorized to establish timelines for other departments to implement or complete actions or require another department to take any particular action.
Accordingly, your Committee has amended this measure by:
(1) Requiring 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, instead of a list of possible claims against the State that have not yet settled; and
(2) Clarifying that the Attorney General is required to recommend a timeline to a department to complete a recommended action to prevent a similar type of claim from occurring in the future.
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. 796, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 796, 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,
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________________________________ KARL RHOADS, Chair |
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Date
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Testimony PDF
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| Feb 3, 2025 | SB796_TESTIMONY_JDC_02-05-25_.PDF |
Bill Author
Bill Co-Author(s):