REQUESTING EACH STATE AGENCY TO PROVIDE THE AFFECTED PERSON WITH WRITTEN NOTICE OF CERTAIN INFORMATION BEFORE TAKING ANY FINAL ADMINISTRATIVE ACTION THAT MATERIALLY AND ADVERSELY AFFECTS A PROTECTED LIBERTY OR PROPERTY INTEREST.

SR114

THE SENATE

S.R. NO.

114

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

Requesting each state agency to provide the affected
person with written notice of certain information before taking any final
administrative action that materially and adversely affects a protected liberty
or property interest
.

����
WHEREAS, article
I, section 5, of the Hawaii State Constitution and the Fourteenth Amendment of
the United States Constitution provide that no person shall be deprived of
life, liberty, or property without due process of law; and

����
WHEREAS, these
guarantees apply fully to the administrative actions of state agencies when the
actions materially affect protected liberty, property, or livelihood interests;
and

����
WHEREAS, state
executive departments exercise substantial authority over matters including
agricultural land tenure, natural resource management, biosecurity enforcement,
public assistance eligibility, child welfare, professional licensure,
unemployment benefits, educational services, environmental permitting, and
infrastructure development; and

����
WHEREAS, actions
taken in these domains can impose significant economic, legal, and personal
consequences on affected individuals and entities; and

����
WHEREAS, judicial
decisions, legislative audits, investigative reporting, and sworn testimony
have identified recurring procedural due process deficiencies across multiple
state departments; and

����
WHEREAS, these
deficiencies include inadequate or untimely notice, denial of contested case
hearings, lack of impartial adjudication, opaque decision-making, and the
implementation of adverse actions while appeals remain pending; and

����
WHEREAS, collectively,
these practices have resulted in avoidable financial harm to affected parties,
including lost income, disrupted operations, civil penalties, fines, and
litigation costs; and

����
WHEREAS, under
existing law, the financial consequences of unconstitutional or procedurally
deficient agency actions are frequently borne by affected persons or by the
State's general fund, rather than by the department whose conduct caused the
violation; and

����
WHEREAS, this
structure, which does not subject the responsible department to fiscal
consequences, weakens institutional incentives for compliance, diffuses
accountability, and allows recurring procedural failures; now, therefore,

����
BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, that, before taking any final administrative action
that materially and adversely affects a protected liberty or property interest,
each state agency is requested to provide the affected person with written
notice that includes:

����
(1)
�
A clear description of the proposed action and
the factual basis supporting the action;

����
(2)
�
Citation to any statute, rule, or formally
adopted policy the state agency relied on to take the proposed action;

����
(3)
�
Notice of the person's right to request a
contested case hearing or administrative appeal, whichever is applicable; and

����
(4)
�
A clear statement of the deadlines and
procedures for exercising the rights listed in paragraph (3); and

����
BE IT FURTHER
RESOLVED that each state agency is encouraged:

����
(1)
�
Where a contested case hearing is timely
requested in response to a proposed state agency action implicating a protected
liberty or property interest, not to implement the final adverse action until
completion of the contested case proceeding unless the state agency makes
written findings that immediate action is necessary to prevent imminent harm to
public health, safety, or the environment; and

����
(2)
�
To the extent practicable, to maintain
functional separation between investigative, prosecutorial, and adjudicatory
roles to ensure impartial decision-making; and

����
BE IT FURTHER
RESOLVED that, where a court of competent jurisdiction or a final
administrative or appellate decision determines that a state agency has
violated procedural due process requirements under the United States
Constitution, Hawaii State Constitution, or chapter 91, Hawaii Revised
Statutes, and the violation results in:

����
(1)
�
Monetary damages, fines, penalties,
restitution, or settlements;

����
(2)
�
Attorneys' fees or costs awarded against the
State; or

����
(3)
�
Documented financial harm requiring
compensation or remedial payment,

the state agency whose action or omission gave rise to
the financial obligation is urged to satisfy the financial obligation from its
operating budget and not from the general fund, to the extent permitted by law;
and

����
BE IT FURTHER
RESOLVED that the Department of Budget and Finance is requested to support each
state agency in satisfying its financial obligations arising from a violation of
procedural due process requirements by adjusting departmental allotments or
imposing internal accounting transfers as necessary but so as not to impair any
constitutionally or federally mandated service; and

����
BE IT FURTHER
RESOLVED that each state agency is requested to include in its annual budget
submission a summary of:

����
(1)
�
Any expenditures made or determinations of a
state agency's financial obligation due to its violation of procedural due
process requirements pursuant to the determination of a court of competent
jurisdiction or a final administrative or appellate decision; and

����
(2)
�
The nature of the violation resulting in the
expenditure or determination and any corrective measures the state agency has
implemented to prevent repetition of similar violations; and

����
BE IT FURTHER
RESOLVED that each state agency is urged not to discharge, threaten, or
otherwise discriminate against an employee regarding the employee's
compensation, terms, conditions, location, or privileges of employment because
the employee, or a person acting on behalf of the employee, reports or is about
to report to the employer, or reports or is about to report to a public body,
verbally or in writing, a violation or suspected violation of any procedural
due process right or requirement of chapter 91, Hawaii Revised Statutes, such
as improper denial of a right to a hearing or abuse of discretion; and

����
BE IT FURTHER
RESOLVED that each state agency is requested to submit an annual report to the
Legislature no later than twenty days prior to the convening of each Regular
Session detailing:

����
(1)
�
The number of contested case hearings and
administrative appeals requested;

����
(2)
�
The number of contested case hearing and
administrative appeal requests granted, denied, or withdrawn;

����
(3)
�
The average time each contested case hearing
or administrative appeal took to resolve; and

����
(4)
�
The number of state agency decisions reversed,
remanded, or modified after administrative or judicial review; and

����
BE IT FURTHER
RESOLVED that each state agency is encouraged to make the requested annual
report available on the state agency's publicly accessible website; and

����
BE IT FURTHER
RESOLVED that certified copies of this Resolution be transmitted to the Governor;
Comptroller; Chairperson of the Board of Agriculture and Biosecurity; Attorney
General; Director of Finance; Director of Business, Economic Development, and
Tourism; Director of Commerce and Consumer Affairs; Adjutant General;
Chairperson of the Board of Education; Superintendent of Education; Chairperson
of the Hawaiian Homes Commission; Director of Health; Director of Human
Resources Development; Director of Human Services; Director of Labor and
Industrial Relations; Chairperson of the Board of Land and Natural Resources;
Director of Law Enforcement; Director of Corrections and Rehabilitation;
Director of Taxation; Director of Transportation; and President of the
University of Hawaii System.

OFFERED BY:

_____________________________

Report Title:
�

State
Agencies; Due Process; Public Proceedings; Fiscal Accountability; Reports