Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1784 entitled:

begs leave to report as follows:

The purpose of this measure is to amend the definition of employee under the Employer-Union Health Benefits Trust Fund to include part-time employees working twenty or more hours per week.

This measure also provides for membership in the Employees' Retirement System for part-time employees working twenty or more hours per week.

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

Comments on this measure were submitted by the Department of Budget and Finance, the Department of the Attorney General, and the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that part-time employees serve a valuable function in our state government, providing substitute and seasonal coverage, thereby often reducing operational overtime costs. However, these employees are historically excluded from many of the benefits afforded to full-time public servants, the most important of these benefits being health and retirement benefits. Your Committee determines that in recognition of their dedicated service, part-time employees working at least twenty hours per week should be extended the benefits of health and retirement benefits.

Additionally, your Committee finds that half-time teachers who are members of collective bargaining unit (5), pursuant to subsection 89-6(a), Hawaii Revised Statutes, work only 17.5 hours per week, but believes that these individuals are working a half-time equivalent and should also be afforded the same benefits as part-time employees under this measure.

Accordingly, your Committee has amended this measure by:

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. 1784, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1784, S.D. 1, and be referred to the Committee on Ways and Means.