STAND. COM. REP. NO.  83-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 1979

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1979 entitled:

"A BILL FOR AN ACT RELATING TO STATE SALARIES,"

begs leave to report as follows:

     The purpose of this bill is to provide fairness in the process of collecting moneys owed to the state or county by a State officer, agent, or employee, by establishing a three year statute of limitations for the recovery of overpayment of state salaries.

     The Hawaii Government Employees Association and Hawaii State Teachers Association testified in support of this bill.  A concerned individual testified in support of the intent of this measure.  The Department of Accounting and General Services opposed this bill.

     Colleting overpayments of a State employee's salary can be an arduous, and oftentimes difficult task, especially when the overpayment is the result of miscalculations by State.  If this error goes undetected by either party for a number of years, it can make the process all that more difficult.

     Under current law, the State is provided with an unlimited amount of time to collect overpayments it made to State employees.  However, if an underpayment of a State employee's salary is made, the employee is allowed only certain window of opportunity to file a claim.  Limiting the time the State has to pursue reimbursement of a salary overpayment made to a State employee brings fairness to this process.

     Your Committee has amended this measure by:

     (1)  Changing the period of time over which the State or county is allowed to recover employee debts from three years to two years; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1979, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1979, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair