STAND. COM. REP. NO.  478

 

Honolulu, Hawaii

                , 2025

 

RE:   H.B. No. 164

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Madame:

 

     Your Committee on Labor, to which was referred H.B. No. 164 entitled:

 

"A BILL FOR AN ACT RELATING TO INDEBTEDNESS TO THE STATE,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Require disbursing officers to notify employees within sixty days of determining that an indebtedness has occurred as a result of salary or wage overpayment; and

 

     (2)  Change the amount that a disbursing officer may deduct from an employee's salary, wage, or compensation based on the employee's gross income.

 

     Your Committee received testimony in support for this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and United Public Workers, AFSCME Local 646, AFL-CIO.  Your Committee received comments on this measure from the Department of Accounting and General Services.

 

     Your Committee finds that the State and counties will mistakenly overpay an employee, and seek to correct this error by collecting repayment of either $100 per pay period, or 25 percent of the employee's salary, wage, or compensation until the indebtedness is paid in full, without regard to the employee's earnings.  Your Committee believes that this measure provides a repayment plan that is manageable for low-income employees to repay the State or a county while lessening the financial strain.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

 

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

 

     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. 164, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 164, H.D. 1, and be referred to your Committee on Finance.

 

 

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

 

 

 

 

____________________________

JACKSON D. SAYAMA, Chair