Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2593 entitled:

begs leave to report as follows:

The purpose of this measure is to allow a public employee, who owes money to the government as a result of an overpayment of salary or wages and who requests a hearing on the matter, to structure a repayment schedule.

Testimony in support of this measure was submitted by the United Public Workers/AFSCME, Local 646, AFL-CIO.

Your Committee finds that under the current law, upon determination by the disbursing officer that a public employee has received an overpayment of salary or wages, one-quarter of the employee's salary, wages, or compensation is withheld until the debt is fulfilled. Your Committee further finds that this requirement can place an undue burden upon an employee's financial well-being, particularly in light of the current economic climate. Therefore, your Committee determines that for an employee who contests the determination of indebtedness, the repayment process should be more flexible to allow for an agreed-upon repayment schedule that will ease the employee's financial burden, yet continue to provide for repayment.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2593 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.