Hawaii 2022 Regular Session

Hawaii Senate Bill SB633 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 633 THIRTY-FIRST LEGISLATURE, 2021 STATE OF HAWAII A BILL FOR AN ACT relating to the employees' retirement system. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 633
4	4	THIRTY-FIRST LEGISLATURE, 2021
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	633
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13	13	THIRTY-FIRST LEGISLATURE, 2021
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to the employees' retirement system.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows: "§88- Forfeiture of benefits; felony convictions. (a) If a member, former member, or retirant is convicted of a felony and the court finds that, by a preponderance of the evidence, the felony is related to the employment of the member, former member, or retirant by the State or any county, the court may decree a civil penalty, pursuant to section 706-605(8), of forfeiture by the member, former member, or retirant of all or a portion of any: (1) Interest; (2) Hypothetical account balance in excess of the amount representing any employee contributions made by or on behalf of the member, former member, or retirant; (3) Pension; (4) Annuity; or (5) Retirement allowance, to which the member, former member, or retirant may otherwise be entitled under this chapter; provided that upon the death of the member, former member, or retirant, the designated beneficiary of the member, former member, or retirant may receive benefits to which the beneficiary would otherwise be entitled under this chapter; provided further that the designated beneficiary was not also convicted of a felony based on the same set of circumstances as the member, former member, or retirant penalized under this section. (b) Upon receipt of a certified copy of the order decreeing forfeiture, the system shall comply with the order and shall reduce, suspend, or deny payment to the member, former member, retirant, or designated beneficiary, if applicable, as provided in the order until such time as the system receives a certified order to: (1) Increase, resume, or make payments to the member, former member, retirant, or designated beneficiary; or (2) Quash or reverse the decree of forfeiture. The system shall not be required to make inquiry into the propriety of the order decreeing forfeiture or recoup any payments made to the member, former member, retirant, or designated beneficiary prior to receipt by the system of the order decreeing forfeiture. (c) For the purposes of this section, a felony is "related to the employment" of an employee of the State or a county if the employee uses or attempts to use the employee's official position to commit the felony, including: (1) Felonies in which state or county time, equipment, or other facilities are used in the commission of the felony; (2) Bribery; (3) Embezzlement, theft, or other unlawful taking, receiving, retaining, or failing to account properly for, any property or funds that belong to the State or any county or any department, bureau, board, or other agency thereof; or (4) A felony committed against a person over whom the employee, in the course of the employee's duties, exercises custody or supervision. (d) This section shall not impair or diminish benefits accrued prior to the effective date of Act , Session Laws of Hawaii 2021. This section shall not apply to felonies committed prior to the effective date of Act , Session Laws of Hawaii 2021. (e) This section shall not apply to accrued retirement benefits that are non-forfeitable pursuant to sections 88-73(f), 88-281(g), and 88-331(f)." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect on July 1, 2021. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:
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51	51	"§88- Forfeiture of benefits; felony convictions. (a) If a member, former member, or retirant is convicted of a felony and the court finds that, by a preponderance of the evidence, the felony is related to the employment of the member, former member, or retirant by the State or any county, the court may decree a civil penalty, pursuant to section 706-605(8), of forfeiture by the member, former member, or retirant of all or a portion of any:
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53	53	(1) Interest;
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55	55	(2) Hypothetical account balance in excess of the amount representing any employee contributions made by or on behalf of the member, former member, or retirant;
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57	57	(3) Pension;
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59	59	(4) Annuity; or
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61	61	(5) Retirement allowance,
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63	63	to which the member, former member, or retirant may otherwise be entitled under this chapter; provided that upon the death of the member, former member, or retirant, the designated beneficiary of the member, former member, or retirant may receive benefits to which the beneficiary would otherwise be entitled under this chapter; provided further that the designated beneficiary was not also convicted of a felony based on the same set of circumstances as the member, former member, or retirant penalized under this section.
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65	65	(b) Upon receipt of a certified copy of the order decreeing forfeiture, the system shall comply with the order and shall reduce, suspend, or deny payment to the member, former member, retirant, or designated beneficiary, if applicable, as provided in the order until such time as the system receives a certified order to:
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67	67	(1) Increase, resume, or make payments to the member, former member, retirant, or designated beneficiary; or
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69	69	(2) Quash or reverse the decree of forfeiture.
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71	71	The system shall not be required to make inquiry into the propriety of the order decreeing forfeiture or recoup any payments made to the member, former member, retirant, or designated beneficiary prior to receipt by the system of the order decreeing forfeiture.
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73	73	(c) For the purposes of this section, a felony is "related to the employment" of an employee of the State or a county if the employee uses or attempts to use the employee's official position to commit the felony, including:
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75	75	(1) Felonies in which state or county time, equipment, or other facilities are used in the commission of the felony;
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77	77	(2) Bribery;
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79	79	(3) Embezzlement, theft, or other unlawful taking, receiving, retaining, or failing to account properly for, any property or funds that belong to the State or any county or any department, bureau, board, or other agency thereof; or
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81	81	(4) A felony committed against a person over whom the employee, in the course of the employee's duties, exercises custody or supervision.
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83	83	(d) This section shall not impair or diminish benefits accrued prior to the effective date of Act , Session Laws of Hawaii 2021. This section shall not apply to felonies committed prior to the effective date of Act , Session Laws of Hawaii 2021.
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85	85	(e) This section shall not apply to accrued retirement benefits that are non-forfeitable pursuant to sections 88-73(f), 88-281(g), and 88-331(f)."
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87	87	SECTION 2. New statutory material is underscored.
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89	89	SECTION 3. This Act shall take effect on July 1, 2021.
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93	93	INTRODUCED BY: _____________________________
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95	95	INTRODUCED BY:
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103	103	Report Title: Employees' Retirement System; Retirement Benefits; Felony Convictions; Forfeiture Description: Authorizes forfeiture of certain ERS benefits, pursuant to court order, for state or county employees and designated beneficiaries who are convicted of an employment-related felony. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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111	111	Employees' Retirement System; Retirement Benefits; Felony Convictions; Forfeiture
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115	115	Description:
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117	117	Authorizes forfeiture of certain ERS benefits, pursuant to court order, for state or county employees and designated beneficiaries who are convicted of an employment-related felony.
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125	125	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.