Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 307 entitled:

begs leave to report as follows:

The purpose of this bill is to specifically prohibit public officers and employees from assigning themselves excessive overtime in order to increase their average final compensation under the Employees' Retirement System.

Testimony in support of the measure was received by the Department of Budget and Finance and the Employees' Retirement System. Testimony in opposition to the measure was received from a Honolulu Police Department detective.

Your Committee has redrafted the measure to specify that compensation earned as a result of the abusive use of overtime cannot be included in the calculation of the average final compensation. Your Committee has also amended this measure to place a ceiling on the inclusion of overtime for the purpose of calculating a person's average final compensation. It appears appropriate for the employer to hire additional personnel in the event that overtime of more than one hundred fifty percent above an employee's average compensation is accrued by any employee.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 307, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 307, H.D. 1, and be referred to the Committee on Finance.