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:

 

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

     "[[]§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.

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

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

     (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

     (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.

     (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).

     (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.

     (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.

     (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.

     (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.

     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.

     (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."

     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:

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.

 

 

 

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