SB2118 • 2026

RELATING TO INDEBTEDNESS TO THE STATE.

Labor

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Sponsor: ELEFANTE, CHANG, FEVELLA, MCKELVEY, RICHARDS, Hashimoto, San Buenaventura
Last action: 2026-02-06
Official status: Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO INDEBTEDNESS TO THE STATE.

What This Bill Does

RELATING TO INDEBTEDNESS TO THE STATE.
Public Employers; Public Employees; Indebtedness; Salary or Wage Overpayment; Overpayment Payroll Transactions; Deductions for Recovery; Notice Repeals the requirement that the disbursing officer immediately begin recovery of the indebtedness regardless of a pending contested case.
Amends the maximum amount that a disbursing officer may deduct from an employee's salary, wage, or compensation as recovery of an employee's indebtedness to 5% of the employee's gross income per pay period, with exceptions.
Requires a written statement to be provided to the employee at least thirty calendar days before the deduction.

Limits and Unknowns

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Amendments

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SD1

Hawaii published version SD1

Plain English: SB2118 SD1 THE SENATE S.B.

SB2118 SD1 THE SENATE S.B.
NO.
2118 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INDEBTEDNESS TO THE STATE .

Bill History

2026-02-06 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM.
2026-02-06 S
Reported from LBT (Stand. Com. Rep. No. 2120) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/WAM.
2026-01-28 S
The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 5 Aye(s): Senator(s) Elefante, Lamosao, Ihara, Moriwaki, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2026-01-23 S
The committee(s) on LBT has scheduled a public hearing on 01-28-26 3:00PM; Conference Room 225 & Videoconference.
2026-01-22 S
Referred to LBT, JDC/WAM.
2026-01-21 S
Introduced and passed First Reading.
2026-01-14 S
Pending Introduction.

Official Summary Text

RELATING TO INDEBTEDNESS TO THE STATE.
Public Employers; Public Employees; Indebtedness; Salary or Wage Overpayment; Overpayment Payroll Transactions; Deductions for Recovery; Notice
Repeals the requirement that the disbursing officer immediately begin recovery of the indebtedness regardless of a pending contested case. Amends the maximum amount that a disbursing officer may deduct from an employee's salary, wage, or compensation as recovery of an employee's indebtedness to 5% of the employee's gross income per pay period, with exceptions. Requires a written statement to be provided to the employee at least thirty calendar days before the deduction. Effective 1/1/2077. (SD1)

Current Bill Text

Read the full stored bill text

SB2118

THE SENATE

S.B. NO.

2118

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to indebtedness to the state
.

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

����
SECTION
1
.
�
Section 78-12, Hawaii Revised Statutes, is
amended by amending subsection (f) to read as follows:

����
"(f)
�
[
Regardless of whether a contested
determination of indebtedness is pending, the disbursing officer shall commence
immediate recovery of the indebtedness as provided in this subsection.
�
If the indebtedness is equal to or less than
$1,000, the disbursing officer shall immediately deduct from any subsequent
periodic payment normally due the employee any amount up to the total amount of
indebtedness and for indebtedness greater than $1,000, the disbursing officer
shall deduct:

����
(1)
�
An amount agreed to by the employee and the
appointing authority, but not less than $100 per pay period; or

����
(2)
�
One-quarter of the salary, wages, or
compensation due the employee until the indebtedness is repaid in full.
]

����
The
disbursing officer shall commence recovery of the indebtedness; provided that
the disbursing officer or appointing authority provides a written statement to
the employee at least thirty calendar days before the deduction. The written
statement shall include the total amount owed and the amount to be deducted
from any subsequent periodic payment normally due the employee. The disbursing
officer shall deduct no more than five per cent of the employee's gross income
per pay period, unless the employee otherwise requests and specifies that a
greater percentage or amount be deducted.

����
[
In addition to paragraph (1), an
]
An

employee and the appointing authority may agree to offset any remaining amount
of indebtedness by applying the current value of appropriate leave or
compensatory time credits posted in the employee's respective accounts as
balances that would otherwise be payable in cash upon separation from service;
provided that credits shall not be applied to any extent that would require a
refund of any moneys already deducted or repaid or that would require the
payment of any moneys to the employee equivalent to a cashing out of leave or
compensatory time credits."

����
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:

Indebtedness;
Salary or Wage Overpayment; Overpayment Payroll Transactions; Deductions for Recovery;
Notice

Description:

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

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