STAND. COM. REP. NO.400

Honolulu, Hawaii

, 2001

RE: H.B. No. 617

H.D. 1

 

 

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. 617, entitled:

"A BILL FOR AN ACT RELATING TO THE COMPENSATION OF PUBLIC OFFICERS,"

begs leave to report as follows:

The purpose of this bill is to increase the salaries of certain public officials.

Under the present law, annual compensation for department heads, deputy or assistants to department heads, and the administrative director of the State has not been increased in more than ten years. This bill is intended to make the pay of certain state officials comparable to holders of similar positions in the administration of the city and county of Honolulu. Increasing the compensation for certain public officers assists the State in attracting and retaining qualified individuals for government service.

The Office of the Governor, and the Department of Budget and Finance testified in support of this measure. The Department of Human Resources Development and the Department of Public Safety submitted comments.

Your Committee finds that Act 253, Session Laws of Hawaii 2000, endorses the principle that civil service employment should be based on merit. Your Committee believes that the merit principles of Act 253 should apply to determining compensation levels. In employment matters concerning public employees, the Legislature is comparable to a board of directors in the private sector. Your Committee feels that the Department of Human Resources Development should not set the salaries for all public officers and that the best alternative would be to have an independent salary commission establish compensation, with the Legislature maintaining the authority to approve salary increases by a simple majority.

Upon further consideration, your Committee has amended this bill by:

(1) Adding a new section to chapter 26, Hawaii Revised Statutes, that creates a salary commission to be appointed by the Governor to establish the salaries of all elected official and certain appointed officials;

(2) Deleting proposed salary increases for department heads or executive officers, deputies or assistants to department heads, and the administrative director of the State;

(3) Clarifying that the salary commission determines the salaries of department heads and the administrative director, exclusive of any merit performance, and approves the salaries of deputies or assistants to department heads; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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. 617, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 617, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

____________________________

TERRY NUI YOSHINAGA, Chair