Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1282 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Housing and Community Development Corporation of Hawaii (HCDCH) to set the salaries of its executive director and executive assistant, subject to the Governor's approval.

The HCDCH testified in support of this measure.

The salaries of executive officers in public housing and housing finance agencies comparable to the HCDCH in other states range upward from $80,000 and average $100,000, substantially higher than that payable under the State's current salary ranges for HCDCH executives. This measure would allow the HCDCH, rather than the Governor, to set the salaries for its executives, without being subject to salary ranges, but subject to the Governor's approval.

While your Committee finds that this measure would allow the HCDCH to offer more competitive salaries as it begins its national search for a new director, your Committee believes that there is a need to develop a consistent state policy with respect to executive salaries, rather than addressing this issue on a case-by-case and piecemeal basis. Therefore, in order to facilitate further discussion of this matter by the Committee on Ways and Means, your Committee has amended this measure by inserting therein a delayed effective date of July 1, 2050. The measure has also been amended to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1282, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1282, S.D. 1, and be referred to the Committee on Ways and Means.