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Bill > SB2118


HI SB2118

HI SB2118
Relating To Indebtedness To The State.


summary

Introduced
01/21/2026
In Committee
02/06/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

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)

AI Summary

This bill modifies how the state recovers money owed by employees, known as indebtedness. Previously, the disbursing officer, the person responsible for paying employees, had to immediately start taking back any money owed, even if the employee was contesting the debt. This bill changes that by requiring the disbursing officer to first provide the employee with a written statement detailing the total amount owed and the planned deduction at least thirty days before any money is taken from their paycheck. Furthermore, the maximum amount that can be deducted from an employee's salary, wage, or compensation per pay period is limited to five percent of their gross income, unless the employee agrees to a higher deduction. The bill also allows for remaining debt to be offset by the current value of unused leave or compensatory time credits, provided it doesn't result in a refund of money already paid or require the state to pay out equivalent cash for that leave.

Committee Categories

Justice, Labor and Employment

Sponsors (7)

Last Action

Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM. (on 02/06/2026)

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