Bill > SB3301

This bill clarifies and adds procedural safeguards to existing law regarding payments made to the State under protest, which means paying money that you believe you don't owe, while reserving the right to challenge it later. Previously, if a lawsuit to recover these funds was filed before the relevant state agency made a final decision on whether the money was owed, the lawsuit could be dismissed, potentially allowing the state to keep the money without a full court review. This bill amends section 40-35 of the Hawaii Revised Statutes to allow lawsuits to proceed even if filed before the agency's final determination, by establishing a "litigated claims fund" where disputed payments are held. If a lawsuit is dismissed as premature, the payment remains in this fund, and the payer has a limited time after the agency's final decision to refile their claim; if the agency doesn't make a decision within 180 days, the payment is refunded with interest.

Budget and Finance, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3301&year=2026