STAND. COM. REP. NO. 1011

Honolulu, Hawaii

RE:    H.B. No. 111

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Labor, to which was referred H.B. No. 111 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to establish a two-year statute of limitations for recovering indebtedness to the State through the withholding of state salaries.

     Testimony in support of this measure was submitted by two organizations and one individual.  Comments were submitted by one state agency and two organizations.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that the State is currently allowed an unlimited amount of time to collect overpayments made to state employees, even when the overpayments were made in error by the State.  Your Committee further finds that this measure provides employees with an equal protection against the State collecting portions of their salaries after more than two years, as in many cases repayment is an unexpected, additional financial burden on those employees.

     In addition to addressing the statute of limitations for the State's recovery of debt through the withholding of state salaries, your Committee also finds necessary an amendment to the salary of the recently vacated state Captive Insurance Administrator position.  In order to attract the best candidates for this position, your Committee has amended this measure by increasing the maximum salary of the Captive Insurance Administrator to an amount equal to the maximum salary of the First Deputy to the Director of Commerce and Consumer Affairs.

     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 H.B. No. 111, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 111, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

DWIGHT Y. TAKAMINE, Chair