STAND. COM. REP. NO. 3643

Honolulu, Hawaii

RE: H.B. No. 1663

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1663, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REIMBURSEMENT OF PUBLIC OFFICERS AND EMPLOYEES,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the reimbursement of travel expenses for public officers and employees.

More specifically, the measure:

(1) Includes "vehicle mileage" in the applicable definition of "approved travel costs";

(2) Requires the State or relevant county to reimburse an officer or employee for work-related travel costs that the officer or employee loaned to the State or county, within thirty calendar days after the officer or employee submits an approved statement of completed travel;

(3) Requires the State or relevant county to pay an officer or employee unspecified interest on any approved travel costs not reimbursed within thirty calendar days;

(4) Obligates an officer or employee to request a complete refund from the travel vendor if the approved travel is canceled, or if the officer or employee can no longer participate in the approved travel; and

(5) Entitles an officer or employee to reimbursement from the State or relevant county when a travel vendor offers a partial refund, or no refund.

Your Committee received written comments in support of this measure from the United Public Workers, University of Hawaii Professional Assembly; and Hawaii Government Employees Association.

Your Committee received written comments on this measure from the State Procurement Office and Hawaii State Public Library System.

Your Committee finds that the work-related travel expenses incurred by governmental employees can be significant. Your Committee believes that it is appropriate for the State to ensure the timely processing of reimbursements to employees for approved travel costs, and to pay interest if a reimbursement is not timely.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1663, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair