Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1332 entitled:

begs leave to report as follows:

The purpose of this measure is to establish an executive salary commission (commission) for the executive branch of government.

The Governor, the Judiciary, and the Department of Human Resources Development submitted testimony supporting this measure.

Specifically, the commission shall review the salaries of the Governor, the Lieutenant Governor, the department heads of the Executive Branch, executive officers, and the deputy department heads, which are set by statute. The salary determinations of the commission shall take effect at the beginning of the next fiscal year unless rejected by three-fourths vote of the members of each house of the Legislature.

Your Committee finds that the present system of reviewing and updating the salaries of the executive branch officials has resulted in grossly outdated salaries. Many qualified individuals are not presently willing or financially able to serve in appointed government positions because the financial sacrifice is too great. The public will benefit from the efficient management of government operations and services as a result of greater numbers of qualified individuals willing to serve in government positions.

The measure provides for the appointment of the five commission members by the Governor, with two appointed from lists submitted by the President of the Senate and the Speaker of the House of Representatives. Your Committee finds however, that in order to dispel any question of impropriety, the Governor should not be permitted to select a majority of the members of the commission. Accordingly, your Committee has amended this measure by requiring the appointment of one of the members from a list of nominees submitted by the Chief Justice of the Supreme Court Justice.

Your Committee also made technical, nonsubstantive changes for purposes of clarity and style, including an amendment to clarify that the new salaries take effect at the beginning of the "next" fiscal year.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1332, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1332, S.D. 1, and be referred to the Committee on Ways and Means.