Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 2678 entitled:

begs leave to report as follows:

The purpose of this bill is to assist public employees with incurable and debilitating diseases and approved for ordinary disability benefits to retire at a time of their choosing rather than the established 90-day deadline established through administrative rules.

The Employees Association of the City and County of Honolulu, Hawaii Government Employees Association, Hawaii State Teachers Association, and numerous individuals testified in support of this bill. The Department of the Attorney General and Employees' Retirement System (ERS) submitted comments.

Currently, ERS administrative rules require a member to retire within 90 days after the member is notified of a favorable decision on the member's ordinary disability retirement application even though the employee may still be productive. Your Committee finds that many employees diagnosed with debilitating or incurable diseases often remain productive members of society who are willing to provide invaluable service to the community. These individuals should be allowed to continue to work until they are physically unable to do so.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2678, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2678, H.D. 1, and be referred to the Committee on Finance.