RELATING TO REIMBURSEMENT OF PUBLIC OFFICERS AND EMPLOYEES.

SB2119

THE SENATE

S.B. NO.

2119

THIRTY-THIRD LEGISLATURE, 2026

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:

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

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"[
[
]�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.

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

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

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(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

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(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.

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(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).

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(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.

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(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;
vehicle mileage;
and any other necessary costs related
to the travel.

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(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.

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(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 submits an approved statement of completed travel
or similar document; provided that the officer or employee shall have the
opportunity to submit an approved statement of completed travel for any
approved travel cost the officer or employee has already incurred prior to the
date of travel.

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If the State or a county is unable to
reimburse the officer or employee within thirty calendar days of when the
officer or employee submits an approved statement of completed travel or
similar document, 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.

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(h)
�

Whenever an officer or employee affirmatively agrees to loan the State
or a county the money in accordance with subsection (b) and in the event the
officer's or employee's approved travel is canceled, or if the officer or
employee can no longer participate in the approved travel, the officer or
employee shall attempt to obtain a complete refund on all approved travel costs
from the vendor.
�
However, if a vendor
refund is not available, then the officer or employee shall be entitled to
reimbursement from the State or a county.
�

If the officer or employee receives only a partial refund on the total
cost from the vendor, then the officer or employee shall be entitled to
reimbursement from the State or a county based on the difference between the
total cost of the travel and the amount reimbursed by the vendor.
"

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

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SECTION 3.
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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 for work-related
travel costs that the officer or employee loaned to the State or a county within
thirty calendar days of submitting an approved Statement of Completed Travel.
�
Requires the State or a county to pay
interest on a loan not reimbursed within thirty days until the loan is fully
reimbursed.
�
Obligates an officer or
employee to request a complete refund from the travel vendor for travel not
taken.
�
Entitles an officer or employee to
reimbursement from the State or a county when a travel vendor offers no or a
partial refund.

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