STAND. COM. REP. NO. 2395

Honolulu, Hawaii

RE: S.B. No. 2839

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 2839 entitled:

"A BILL FOR AN ACT RELATING TO THE REISSUANCE OF PAYROLL CHECKS,"

begs leave to report as follows:

The purpose and intent of this measure is to require an assessment of a $50 fee for the reissuance of a state payroll check that is lost, altered, or otherwise made fraudulent.

Your Committee received testimony in support from the Department of Accounting and General Services. Your Committee received testimony in opposition to this measure from the Hawaii Government Employees Association.

Your Committee finds that it is beneficial to convert from paper checks to a direct deposit system, thereby streamlining the payroll process, and preventing lost or altered checks. Your Committee finds that the process of reissuing a paper check takes time and effort and may take up to two weeks. Your Committee notes that a nominal fee may provide incentive to encourage state employees to sign up for the direct deposit of their paycheck. However, according to testimony received by your Committee, because most financial institutions charge a $25 to $35 assessment on returned checks, a $50 fee on a reissued State payroll check may not be appropriate.

Your Committee has amended this measure by:

(1) Reducing the fee for the reissuance of a state payroll check to $30; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2839, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2839, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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LAURA H. THIELEN, Chair