HI HB1174

Amends Section 40-35, Hawaii Revised Statutes, to modify procedures for payment under protest lawsuits, addressing issues raised in Grace Business Development Corporation v. Kamikawa (2000) where premature lawsuits could be dismissed without allowing taxpayers to obtain judicial review

Allows claimants in non-taxation cases to receive interest earned on their payments held in the litigated claims fund if they prevail, replacing the previous fixed 2% annual interest rate

Permits claimants whose suits are dismissed as premature to refile within 30 days after the agency renders a final decision, with the payment retained in the litigated claims fund during that period

Requires agencies that have not rendered a final decision within 180 days of the claimant's payment, or that decide in favor of the claimant, to refund the payment with interest

Takes effect upon approval by the Governor