STAND. COM. REP. NO. 1497

Honolulu, Hawaii

, 2019

RE: S.B. No. 503

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred S.B. No. 503, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SALARY OVERPAYMENTS,"

begs leave to report as follows:

The purpose of this measure is to address the ongoing issue of salary or wage overpayments by:

(1) Requiring each department to deduct the department's total salary or wage overpayment from the department's budget request for the following fiscal biennium;

(2) Requiring each department, except the University of Hawaii, to place employees who exhaust their sick or vacation leave on a manual accounting system; and

(3) Removing the two-year statute of limitations on the determination and notice of salary or wage overpayment.

The Department of Budget and Finance, Department of Transportation, Department of Education, and Department of Accounting and General Services provided comments.

Your Committee has amended this measure by:

(1) Removing the provisions that require each department, except the University of Hawaii, to record the wages or salary and leave of employees who exhaust their sick or vacation leave, on a manual accounting system; 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 S.B. No. 503, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 503, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair