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~ Barbara C. Jordan, U.S. House of Representatives
Texas 18th District
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~ Margaret Mead, Academic, Cultural Anthropologist, Women's
Rights Activist
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Hawaii Legislature - Legislative Process - Responsible and Ethical Journalism - Citizen Participation
1. HAWAII LEGISLATIVE PROCESS - AN EXAMINATION
RESPONSIBLE AND ETHICAL JOURNALISM1
Seek Truth and Report It
Minimize Harm
Act Independently
Be Accountable and Transparent
Hawaii ofcials are working to reclaim balances on nearly $1.4 million in salary
overpayments mistakenly made to public employees as far back as the 1990s.
Democratic State Sen. Donna Mercado Kim said those balances are too high
and introduced legislation aimed at motivating state departments to more
aggressively recover balances owed and deter salary overpayments in the frst
place.
KIM'S BILL would require state agencies to deduct overpayment costs from
their annual budget requests to the Legislature and place employees who
exhaust their sick leave on a manual payroll system. An earlier provision that
would have allowed the state Employees' Retirement System to garnish the
pensions of retirees who owe the state for overpayments has been removed.
[Emphasis Supplied]
Source: Hawaii lawmakers look to deter, recover salary overpayments
By Associated Press. February 25, 2018, accessed March 26, 2018
https://www.washingtontimes.com/news/2018/feb/25/hawaii-lawmakers-look-to-deter-recover-salary-
over/
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Is SB2598 SD2 HD1 Relating to Salary Overpayments KIM'S BILL?
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1 Society of Professional Journalists - Code of Ethics - https://www.spj.org/ethicscode.asp
2. SB2598 SD2 HD1 https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2598&year=2018
Measure Title: RELATING TO SALARY OVERPAYMENTS.
Report Title: Wage and Salary Overpayment; State Agencies and
Departments; Employees; Budget Requests
Description: Requires each department to deduct the department's total
salary overpayment from the department's budget request for
the following fscal biennium. Requires that employees who
exhaust their sick leave be placed on a manual accounting
system. Removes the two-year statute of limitations on
determination and collection from an employee of salary and
wage overpayment. (SB2598 HD1)
Introducers: KIM, DELA CRUZ, HARIMOTO, GABBARD, GALUTERIA,
IHARA, K. KAHELE, RIVIERE, RUDERMAN, L. THIELEN
3/23/2018 Passed Second Reading as amended in HD 1 and referred to
the committee on FINANCE with none voting aye with
reservations; none voting no (0) and Representatives C. LEE,
LOWEN, MCDERMOTT, SOUKI, TOKIOKA Excused (5).
____________________________________
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committees on Government Operations and Labor, to which was
referred S.B. No. 2598 entitled: “A BILL FOR AN ACT RELATING TO SALARY
OVERPAYMENTS,” beg leave to report as follows:
3. The purpose and intent of this measure is to:
(1) Require each department to deduct the department's total salary
overpayment from the department's budget request for the following fscal
biennium;
(2) Require that employees who exhaust their sick leave be placed on a
manual accounting system;
(3) Repeal the two-year statute of limitations on determination and notice
to an employee of salary and wage overpayment; and
(4) Allow ofcers charged with collecting debt due to salary or wage
overpayment to garnish the pension of former employees.
Your Committees received comments on this measure from the Department
of Accounting and General Services, Department of Education, Department of
Budget and Finance, and Employees' Retirement System.
Your Committees fnd that salary overpayments have been an ongoing issue
throughout many departments and agencies of the State. These overpayments
create needless government waste and strain government resources. In fact,
these overpayments total millions of dollars each year. For example, in
November 2016, state departments and agencies overpaid salaries in the
amount of $622,266.14. From that point through October 2017, state
departments and agencies continued overpaying salaries in an amount
exceeding $415,000 each month. Your Committees fnd that adherence to
stricter guidelines for clawing back overpayments and greater accountability
amongst state departments and agencies is necessary to reduce overpayment
waste.
However, your Committees acknowledge the concerns raised by testimony
from the Employees' Retirement System. The Employees' Retirement System
indicated that the proposed requirements would be difcult to implement,
including the means by which an overpayment would be properly vetted to
garnish a former employees' pension.
4. In addition, the Employees' Retirement System raised concerns that the
proposed requirements would make it exceedingly difcult to properly calculate
benefts for former employees. Consequently, your Committees suggest that if
your Committee on Ways and Means decides to hear this measure, that your
Committee on Ways and Means investigate these concerns further.
Accordingly, your Committees have amended this measure by changing the
efective date to July 1, 2050, to encourage further discussion.
As afrmed by the records of votes of the members of your Committees on
Government Operations and Labor that are attached to this report, your
Committees are in accord with the intent and purpose of S.B. No. 2598, as
amended herein, and recommend that it pass Second Reading in the form
attached hereto as S.B. No. 2598, S.D. 1, and be referred to your Committee on
Ways and Means.
Respectfully submitted on behalf of the members of the Committees on
Government Operations and Labor,
JILL N. TOKUDA, Chair, Senate Committee on Labor
DONNA MERCADO KIM, Chair, Senate Committee on Government Operations
____________________________________
NOTE, SUPPLIED
The committee on WAYS AND MEANS recommends that the measure be
PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 10 Ayes:
Senators DELA CRUZ, KEITH-AGARAN, ENGLISH, GALUTERIA, HARIMOTO,
INOUYE, K. KAHELE, KIDANI, RIVIERE, WAKAI; Ayes with reservations: none
; 0 Noes: none; and and 1 Excused: Senator SHIMABUKURO
____________________________________
5. “3/23/2018 Passed Second Reading as amended in HD 1 and referred to the
committee on FINANCE.” Cited, above.
Formerly FINANCE, now SENATE COMMITTEE ON WAYS AND MEANS
SENATE COMMITTEE ON WAYS AND MEANS
CHAIR DONOVAN M. DELA CRUZ
VICE-CHAIR GILBERT S.C. KEITH-AGARAN
MEMBERS
J. KALANI ENGLISH MICHELLE N. KIDANI
BRICKWOOD GALUTERIA GIL RIVIERE
BREENE HARIMOTO MAILE S.L. SHIMABUKURO
LORRAINE R. INOUYE GLENN WAKAI
KAIALI`I KAHELE
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Is SB2598 SD2 HD1 Relating to Salary Overpayments KIM'S BILL?
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A CITIZEN'S GUIDE TO PARTICIPATION IN THE LEGISLATIVE PROCESS
Prepared by the House Majority Staf Ofce, Hawaii State House of Representatives
With contributions from the Senate Majority Research Ofce, Hawaii State Senate
https://www.capitol.hawaii.gov/docs/cg/CitizensGuide.pdf