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Bill

Bill

SB 2118

RELATING TO INDEBTEDNESS TO THE STATE.

2026 Regular Session Introduced by Stanley Chang and 6 co-sponsors

Hawaii bill modifies state debt collection and repayment procedures, potentially affecting obligations owed to state agencies and debtor financial relief options.

Reported from LBT (Stand. Com. Rep. No. 2120) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/WAM.
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Bill Summary · SB 2118

Legislative bill overview

SB 2118 addresses indebtedness owed to the State of Hawaii, though the specific provisions are not detailed in the legislative record provided. Based on the bill's title and committee referrals, it likely modifies collection procedures, forgiveness mechanisms, or repayment terms for individuals or entities with outstanding debts to state agencies. The bill has passed initial committee review with amendments and is advancing to the Judiciary and Finance committees.

Why is this important

Debt collection policies directly affect individuals and businesses with unpaid obligations to the state, potentially including student loans, tax arrears, unemployment insurance overpayments, or other government-owed debts. Changes to indebtedness procedures can impact debt relief, repayment flexibility, and financial accessibility for vulnerable populations while also affecting state revenue collection.

Potential points of contention

  • Debt forgiveness vs. state revenue: Expanding forgiveness or reducing collection measures may help struggling debtors but could reduce funds available for state services
  • Equity concerns: Different treatment of various debt types (tax debt vs. benefit overpayments) or populations may raise fairness questions
  • Implementation burden: Changes to collection procedures may require administrative resources or create compliance challenges for state agencies

Compiled from official sources — confirm details with the bill’s official record.

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