HOUSE OF REPRESENTATIVES	H.B. NO.	90
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYEE COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 78-13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Unless otherwise provided by law, all officers and employees shall be paid at least semimonthly except that substitute teachers, part-time hourly rated teachers of adult and evening classes, and other part-time, intermittent, or casual employees may be paid once a month [and that the governor, upon reasonable notice and upon determination that the payroll payment basis should be converted from predicted payroll to after-the-fact payroll, may allow a one-time once a month payroll payment to all public officers and employees to effect a conversion to after-the-fact payroll as follows:

(1) The implementation of the after-the-fact payroll will commence with the June 30, 1998, pay day, which will be delayed to July 1, 1998;

(2) The July 15, 1998, pay day will be delayed to July 17, 1998;

(3) The July 31, 1998, pay day will be delayed to August 3, 1998;

(4) The August 14, 1998, pay day will be delayed to August 19, 1998;

(5) The August 31, 1998, pay day will be delayed to September 4, 1998;

(6) The September 15, 1998, pay day will be delayed to September 18, 1998; and

(7) Thereafter, pay days will be on the fifth and the twentieth of every month. If the fifth and the twentieth fall on a state holiday, Saturday, or Sunday, the pay day will be the immediately preceding weekday.]; provided that the payroll payment basis shall be converted from after-the-fact payroll to predicted payroll and shall commence with the August 5, 2025, pay day, which shall be paid on July 31, 2025, and thereafter pay days shall be on the fifteenth and last day of every month. If the fifteenth or the last day of the month falls on a state holiday, Saturday, or Sunday, the pay day shall be on the immediately preceding weekday.

The implementation of the [after-the-fact] predicted payroll shall not be subject to negotiation under chapter 89."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to establish six full-time equivalent (6.0 FTE) positions to perform tasks related to payroll processing, including training, expanded monitoring and auditing, expanded overpayment analysis, and overpayment collection.

The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2027 to pay for costs necessary to convert employees from an after‑the‑fact payroll schedule to a predicted payroll schedule.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2025.

INTRODUCED BY:

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Report Title:

DAGS; Salaries; Public Officers and Employees; Payroll Schedule; Appropriations; General Fund Expenditure Ceiling Exceeded

Description:

Repeals payroll day for public officers and employees by requiring them to be paid pursuant to a predicted payroll schedule, rather than an after-the-fact payroll schedule. Provides that the predicted payroll schedule shall not be subject to negotiation under Chapter 89, HRS. Makes appropriations to establish 6 full-time equivalent positions and to cover the costs of converting to a predicted payroll schedule for 2025-2027.

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