§88-92  Garnishment in certain cases;procedure.  Whenever the comptroller or attorney general of the State, orany county finance director or attorney, or the head of any department, bureau,board or other agency of the State or any county finds, or has reason tobelieve, that any person entitled to any moneys mentioned in section 88-91(such person being hereinafter in this section designated as the defendant) hasembezzled, stolen or otherwise unlawfully taken, received, retained or failedproperly to account for, any property or funds belonging, and which have notbeen returned or repaid, to the State or any county or any department, bureau,board, or other agency thereof, he shall promptly notify the board of trusteesthereof in writing requesting the board to withhold payment of such moneys tothe defendant pending the investigation hereinafter provided for and shallproceed promptly to make such investigation as he deems necessary to ascertainthe facts.

If after the investigation he finds insufficientevidence in his judgment to warrant the action hereinafter provided for, or ifthe investigation exonerates the defendant, he shall promptly notify the boardin writing of such finding and shall withdraw the notice to withhold.

If, however, in his judgment, the evidencewarrants the action, he shall forthwith bring an action in the name of theState or county, or the department, bureau, board or other agency concerned (ifit is authorized by law to sue in its own name), as the case may be, againstthe defendant in a court having jurisdiction of the amount of the judgmentprayed for in any district or circuit, as the case may be, in which thedefendant can be found or resides, or in the circuit court of the firstjudicial circuit, setting forth of his own knowledge or on information andbelief, as the case may be, the facts of the case, including the amount offunds or the value and description of the property alleged to have beenembezzled, stolen or otherwise unlawfully taken, received or retained, or notproperly accounted for, naming the board as garnishee, and praying for judgmentagainst the defendant and for the issuance of garnishment process against theboard.  All such courts are hereby given jurisdiction of these actions.

The form of the complaint and summons shall besimilar, as nearly as may be, to that used in proceedings against governmentbeneficiaries under chapter 653, and the action authorized by this sectionshall lie notwithstanding the fact that the claim in certain cases may be for anunliquidated amount or may sound in tort.  Upon receipt of the notice, theboard shall withhold the payment of the moneys to the defendant for the periodand in the manner hereinafter provided.  If the garnishment process hereinabovementioned is not served upon the board within the period of sixty days afterreceipt by the board of the notice to withhold, or if before the expiration ofthe period the notice to withhold shall be withdrawn, the board shall thereuponpay such moneys to the defendant.

If, however, the garnishment process is servedupon the board within the period, it shall be unlawful for the board to pay anysuch moneys to the defendant or his order until the garnishment proceedingsshall have been withdrawn or dismissed, or the judgment, if any, obtainedagainst the defendant shall have been fully paid, any of which events, as thecase may be, shall be certified by the court, in or before which suchproceedings has been pending.  The moneys so withheld from the defendant shallbe deemed sequestered in the custody of the board from the time of service onthe board.  At any time after service upon the board, the court, upon theconsent of the plaintiff or upon motion of the defendant or of the board andnotice to the plaintiff, may determine whether the amount so withheld isexcessive in comparison with the judgment that the plaintiff might obtain inthe action, and, if so, what part thereof is a reasonable amount to be sosequestered, and may thereupon release the remainder thereof from being sosequestered.

The provisions of chapter 653 shall beapplicable, as nearly as may be, to garnishment proceedings authorized by thissection, as to certification of the judgment to the garnishee, payment ofjudgment, and other matters not specifically provided for in this section. [L1933, c 81, §2; RL 1935, §7931; RL 1945, §716; RL 1955, §6-59; am L 1957, c152, §1; HRS §88-83; am L 1969, c 110, pt of §1]