Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2357 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the payroll lag for public employees and establish paydays on the first and fifteenth of every month.

Testimony in support of this measure was submitted by the Hawaii State Teachers Association and the Hawaii Government Employees Association.

Testimony in opposition to this measure was submitted by the Department of Budget and Finance.

Your Committee finds that an after-the-fact payroll schedule for public employees was instituted pursuant to Act 355, Session Laws of Hawaii 1997, that resulted in public employees being paid on the fifth and twentieth of every month. Your Committee determines that a return to scheduled pay days on the first and fifteenth of each month will act to alleviate the current financial strain placed upon our dedicated public servants as a result of the payroll lag.

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. 2357 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.