STAND. COM. REP. NO. 1072

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1038
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred H.B. No. 1038, H.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING APPROPRIATIONS FOR COLLECTIVE
     BARGAINING COST ITEMS,"

begs leave to report as follows:

     The purpose of this measure is to provide funding
authorizations and appropriations for collective bargaining cost
items for Units 1, 2, 3, 4, 6, 8, 9, 10, and 13 and their
excluded counterparts.

     This measure also appropriates funds for salary increases
for excluded employees of legislative service agencies.

     Testimony in support of this measure was received from the
State Auditor, the Ombudsman, the United Public Workers, and the
Hawaii Government Employees Association.  The Department of
Budget and Finance, the Office of Collective Bargaining, and
Hawaii Health Systems Corporation testified in support of the
measure with amendments.

     Your Committee finds that the 1998 Legislature did not make
appropriations to fund retroactive and continuing cost items in
collective bargaining agreements for Units 1, 2, 3, 4, 6, 8, 9,
10, and 13.


 
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                                   STAND. COM. REP. NO. 1072
                                   Page 2


     Your Committee has amended this measure by deleting its
contents and replacing it with the language of S.B. No. 1284,
S.D. 2., which appropriates funds for collective bargaining cost
items that were not funded by past legislatures.  In addition
S.B. No. 1284, S.D. 2, provides an appropriation to fund salary
increases for the employees of the Hawaii Health Systems
Corporation which were not included in the Health Systems general
fund request.  

     Your Committee has also retained the language from H.B.
No. 1038, H.D. 1, that appropriates funds for employees of
legislative service agencies.

     The amounts of all appropriations in the amended measure are
$2 for discussion purposes.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1038, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1038, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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