§383-71  Collection of delinquentcontributions.  (a)  Civil action.  If any employer is in default in thepayment of any contributions required to be paid by the employer pursuant tothis chapter, the director of labor and industrial relations may, when theamount of the contributions with respect to which the employer is delinquent isdetermined, either by the report of the employer or by the assessment by thedepartment of labor and industrial relations, proceed to collect payment of thesame by action in assumpsit, in the director's own name, on behalf of theState, for the amount of the contributions, costs, penalties, and interest.  Insuch actions the several district courts shall have concurrent jurisdictionwith the circuit courts, irrespective of the amount claimed.  Actions broughtunder this section shall be heard by the court at the earliest possible dateand shall be entitled to preference upon the calendar of the court over allother civil actions except petitions for judicial review under this chapter andcases arising under the workers' compensation law.

No proceedings in court for the collection ofdelinquent contributions shall be begun after the expiration of four years fromthe last day of the month following the last month of the quarter for which thecontributions are due; provided that in the case of a false or fraudulentreturn or the wilful failure to file a return with intent to evade the paymentof contributions, a proceeding in court for the collection of the contributionsmay be begun at any time.

(b)  Distraint.  If the amount of contributionsor interest assessed is not paid when due the director may collect payment ofsame by distress upon so much of the delinquent employer's goods, chattels,moneys, or intangibles represented by negotiable evidences of indebtedness, asthe director may deem sufficient to satisfy the payment of contributions due,penalties, and interest if any, and the costs and expenses of distress.  In thecase of moneys, distress shall be effected by seizure, and in other casesdistress shall be effected by seizure and sale of the property.  The directorshall take possession and keep the distrained property until the sale.  Aftertaking possession, the director shall sell the delinquent employer's interest inthe property at public auction after first giving fifteen days' public noticeof the time and place of the sale in the county where the sale is to be held,and by posting notice in at least three public places in the county where thesale is to be held.  The director may require the assistance of any sheriff orauthorized police officer of any county to aid in the seizure and sale of thedistrained personal property.  The director may further retain the services ofany person competent and qualified to aid the sale of the distrained personalproperty, provided that the consent of the delinquent employer is obtained. Any sheriff or the person so retained by the director shall be paid a fair andreasonable fee but in no case shall the fee exceed ten per cent of the grossproceeds of the sale.  Any person other than a sheriff so retained by thedirector to assist the director may be required to furnish a bond in an amountto be determined by the director.  The fees and the cost of the bond shallconstitute a part of the costs and expenses of the distress.

The sale shall take place within twenty daysafter seizure; provided that by public announcement at the sale, or at the timeand place previously set for the sale, it may be extended for one week.  Anyfurther extension of the sale shall be with the consent of the delinquentemployer.  The sale, in any event shall be completed within forty-five daysafter seizure of the property.  Sufficient property shall be sold to pay allcontributions, penalties, interest, costs, and expenses.  On payment of theprice bid for any property sold, the delivery thereof with a bill of sale fromthe director shall vest the title of the property in the purchaser.  No chargeshall be made for the bill of sale.  All surplus received upon any sale afterthe payment of the contributions, penalties, interest, costs, and expenses,shall be returned to the owner of the property sold, and until claimed shall bedeposited in the director's office subject to the order of the owner.  Any unsoldportion of the property seized may be left at the place of sale at the risk ofthe owner.  If the owner of the property seized desires to retain or regainpossession thereof, the owner may give a sufficient bond and surety to producethe property at the time and place of sale or pay all contributions, penalties,interest, costs, and expenses.

(c)  Liens, foreclosure.  The claim of thedepartment for any contributions, including penalties and interest thereon, notpaid when due, shall be a lien upon property as provided by section 231-33, andthe powers conferred on the director of taxation by that section apply to thesecontributions, the same as other state taxes.  However, as to the powersconferred on the director of taxation by section 231-33(h), such powers are, asto these contributions, conferred on the director of labor and industrialrelations, and the lien may be foreclosed in a court proceeding or by distraintunder this section. [L 1939, c 219, §7(e); am L 1941, c 304, §1, pt of subs 22and subs 23; RL 1945, pt of §§4257, 4258; am L 1949, c 77, §1; am L 1953, c 23,§1(6); RL 1955, §93-70; am L 1957, c 115, §1(d) and c 185, §§2, 3; am L Sp 19592d, c 1, §§16, 27; HRS §383-71; am L 1975, c 41, §1; gen ch 1985; am L 1989, c211, §10; am L 1990, c 281, §11; am L 1998, c 2, §94]

 

Rules of Court

 

  Assignment of cases in circuit court, see HRCP rule 40.