THE SENATE	S.B. NO.	341
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to REIMBURSEMENT of public officers and employees.

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

SECTION 1. Section 78-32, Hawaii Revised Statutes, is amended to read as follows:

"[[]§78-32[]] Payment of approved travel costs for public officers and employees. (a) This section shall apply to all approved travel costs incurred by an officer or employee of the State or a county in connection with the official business of the respective jurisdiction.

(b) Subject to subsection (d), the State and the counties may pay approved travel costs directly to:

(1) The vendor providing the goods or services involved; [or]

(2) The officer or employee for whom the approved travel costs are to be paid, by way of a cash advance [prior to] before the date of purchase[, unless the officer or employee affirmatively agrees to loan the State or a county the money for the travel costs and be reimbursed after the officer or employee pays for the travel costs.]; or

(3) The officer or employee when the officer or employee affirmatively agrees to loan the State or a county the money for the travel costs and be reimbursed after the officer or employee pays for the travel costs.

(c) This section shall not be construed as precluding the reimbursement of approved travel costs to an officer or employee upon completion of travel for any costs that for any reason were not paid by the State or the county, as applicable, in accordance with subsection (b).

(d) As pertains to the officer or employee incurring approved travel costs, whenever there is a conflict between a collective bargaining agreement and this section, the terms of the collective bargaining agreement shall prevail.

(e) For the purposes of this section, "approved travel costs" means any determinable costs of travel for official state or county business approved by the respective jurisdiction and supported by a written invoice. The term includes the costs of transportation to and from a destination point, between destination points, or within a destination point; event registration fees; per diem allowances; and any other necessary costs related to the travel.

(f) An employer shall not take adverse employment actions against an officer or employee who does not affirmatively agree to loan the State or a county the money for the travel costs and be reimbursed after the officer or employee pays for the travel costs.

(g) Whenever an officer or employee affirmatively agrees to loan the State or a county the money for travel costs pursuant to subsection (b), the State or county shall reimburse the officer or employee within thirty calendar days after the officer or employee requests reimbursement for the travel costs; provided that if the State or a county is unable to reimburse the officer or employee within thirty calendar days, the State or a county shall pay interest of       per cent of the total amount owed to the officer or employee until the loan is fully reimbursed. Interest shall be compounded every thirty days."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Reimbursement; Public Employees; Travel Costs; Interest Owed

Description:

Requires the State or a county to reimburse an officer or employee within thirty calendar days of a request for reimbursement for travel costs that the officer or employee loaned to the State or a county. Requires the State or a county to pay a percentage of interest on the total amount owed to an officer or employee until the loan is fully reimbursed.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.