SB 2118 Hawaii Senate · 2026 Regular Session

RELATING TO INDEBTEDNESS TO THE STATE.

SB 2118 changes how the state recovers money owed by employees. It limits salary deductions for debt repayment to 5% of an employee's gross pay per pay period (with exceptions), replaces the rule requiring immediate recovery during disputed cases, and mandates a 30-day written notice before any deduction. These changes apply specifically to state employees who owe money to the state. The bill takes effect on January 1, 2077.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 14, 2026 Last action Feb 6, 2026

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What changed between versions

SB2118 → SB2118_SD1 · 4 edits

MODERATE

This bill updates the rules for recovering money owed by state employees. It removes the requirement for immediate recovery, allowing for a 30-day notice period before deductions begin. It also sets a new cap on deductions at 5% of gross income per pay period, unless the employee agrees to a higher amount. These changes aim to provide employees with more time to address disputes and prevent excessive financial hardship.

Scope change

The bill's scope remains focused on state employee indebtedness, but the enforcement mechanism shifts from immediate action to a process requiring prior notice and adhering to a percentage cap.

REQUIREMENT

Removed the mandate for the disbursing officer to immediately commence recovery of debt.

Added a requirement to provide a written statement to the employee at least 30 calendar days before any deduction.

Capped deductions at 5% of gross income per pay period, unless the employee requests a higher amount.

TIMELINE

Changed the effective date of the Act from approval to January 1, 2077.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 6, 2026

Upper · Passed

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

upper

Feb 6, 2026

Committee

Reported from LBT (Stand. Com. Rep. No. 2120) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/WAM.

upper

Jan 28, 2026

Upper · Passed

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.

upper

Jan 23, 2026

Upper · Passed

The committee(s) on LBT has scheduled a public hearing on 01-28-26 3:00PM; Conference Room 225 & Videoconference.

upper

Jan 22, 2026

Committee

Referred to LBT, JDC/WAM.

upper

Jan 21, 2026

Introduced

Introduced and passed First Reading.

upper

Jan 14, 2026

Introduced

Pending Introduction.

upper

5 primary · 2 co-sponsors