HB1528 SD1 SSCR1081

STAND. COM. REP. NO. 1081

Honolulu, Hawaii

, 2005

RE: H.B. No. 1528

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Labor and Transportation and Government Operations, to which was referred H.B. No. 1528, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEES,"

beg leave to report as follows:

The purpose of this measure is to adjust the salaries for state positions that are not established by the Executive Salary Commission.

Specifically, this measure adjusts the salary levels for positions within the following:

(1) Office of Elections;

(2) Office of the Auditor;

(3) Legislative Reference Bureau;

(4) Hawaii Labor Relations Board;

(5) Office of the Ombudsman;

(6) State Procurement Office;

(7) Stadium Authority;

(8) Civil Defense Agency;

(9) Commission on Water Resource Management;

(10) Housing and Community Development Corporation of Hawaii;

(11) Public Utilities Commission;

(12) Office of Solid Waste Management;

(13) Hawaii Paroling Authority;

(14) Labor and Industrial Relations Appeals Board;

(15) Division of Financial Institutions;

(16) Office of the Public Defender;

(17) Executive Office on Aging;

(18) Office of Veterans' Services; and

(19) Office of Community Services.

Testimony in support of this measure was submitted by the Department of Human Resources Development, the Department of Health, the Department of Defense, the Department of the Attorney General, the Office of the Auditor, the Office of the Ombudsman, the Labor and Industrial Relations Appeals Board, the Hawaii Paroling Authority, the Legislative Reference Bureau, two Commissioners of the Public Utilities Commission, and two individuals. Testimony in opposition to this measure was submitted by the Housing and Community Development Corporation of Hawaii.

Your Committees find that in 2004, the Executive Salary Commission adjusted the salary levels for deputy directors within the State. However, the salary levels for the positions listed in items (1) through (19) above are currently established by statute and are beyond the review of the Executive Salary Commission. Additionally, the salary ranges for many of these positions have remained unchanged for over a decade. Based upon the current law, it appears that several of these positions were intended by the Legislature to be compensated within the same salary range as deputy directors or assistants, while others require adjustment by the proper authority, as appropriate. Therefore, your Committees determine that it is necessary to provide for the adequate compensation of the individuals in these positions at a level commensurate with their responsibilities, experience, and performance in order to recruit and retain qualified individuals.

Furthermore, your Committees recognize that concerns regarding salary parity may still exist under this measure and seek to address those concerns, including providing for an adjustment to the salary of the Executive Director of the State Ethics Commission.

Accordingly, your Committees have amended this measure by:

(1) Changing the salary of the Chief Election Officer to a salary set by the election commission in accordance with the individual's qualifications and experience;

(2) Changing the salary of the Auditor to be the same as that of a district court judge;

(3) Changing the salary of the first assistant or deputy assistant within the Office of the Auditor to be not more than ninety-two percent of the Auditor's salary;

(4) Changing the salary of the director of the Legislative Reference Bureau to the same as that of a district court judge;

(5) Changing the salary of the first assistant to the Director of the Legislative Reference Bureau to not more than ninety-two percent of the Director;

(6) Changing the salary of the chairperson of the Hawaii Labor Relations Board to be set at the maximum salary payable to the deputy director of the Department of Budget and Finance;

(7) Changing the salary of the Ombudsman to the same as that of a district court judge;

(8) Changing the salary of the first assistant to the Ombudsman to not more than ninety-two percent of the Ombudsman's salary;

(9) Changing the salary for the state procurement office administrator to be a salary set by the Governor in accordance with the individual's qualifications and experience;

(10) Changing the salary of the manager of the stadium authority to be a salary set by the stadium authority in accordance with the individual's qualifications and experience;

(11) Changing the salary of the deputy manager of the stadium authority to be equal to eighty-five percent of the manager's salary;

(12) Changing the salary of the Vice-Director of civil defense to a salary set by the Director of civil defense;

(13) Changing the salary of the executive director of the Housing and Community Development Corporation of Hawaii (HCDCH) to a salary set by the HCDCH board;

(14) Changing the salary of the executive assistant of the HCDCH to a salary set by the HCDCH board;

(15) Changing the salary of the chairperson of the Public Utilities Commission to be set at the maximum salary payable to the deputy director of the Department of Budget and Finance;

(16) Changing the salary of the recycling coordinator to be a salary set by the Director of Health;

(17) Changing the salary of the director of the Executive Office on Aging to be a salary set by the Director of Health;

(18) Changing the salary of the chair of the Hawaii Paroling Authority to be set at the maximum salary payable to a deputy director of the Department of Public Safety;

(19) Changing the salary of the director of the Office of Veterans' Services to be a salary set by the Governor;

(20) Changing the salary of the chairperson of the Labor and Industrial Relations Appeals Board to be set at the maximum salary payable to the deputy director of the Department of Budget and Finance;

(21) Including an amendment to the salary of the Executive Director of the Hawaii State Ethics Commission to be set by the Ethics Commission at an amount that does not exceed the salary of the first assistant or first deputy auditor;

(22) Changing the effective date of the Act from July 1, 2010 to be effective on July 1, 2005; and

(23) Making technical, nonsubstantive amendments for purposes of clarity and style.

As affirmed by the records of votes of the members of your Committees on Labor and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1528, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1528, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Transportation and Government Operations,

____________________________ LORRAINE R. INOUYE, Chair		____________________________ BRIAN KANNO, Chair