STAND. COM. REP. NO.  628

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1817

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Labor & Public Employment and Public Safety & Military Affairs, to which was referred H.B. No. 1817 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

beg leave to report as follows:

     The purpose of this bill is to assist the county police departments with the retention of their police officers by allowing police officers to receive a maximum retirement allowance of 100 percent of an officer's average final compensation.

     The Honolulu Police Department, County of Hawaii Police Department, and State of Hawaii Organization of Police Officers testified in support of this bill.  The Employers Retirement System opposed this measure.  The Attorney General submitted comments and concerns.

     One of the major problems facing Hawaii's police departments involves personnel shortages.  In fact, all island police departments combined are currently experiencing a shortage of 334 officers.  The problem is exacerbated by the fact that retention of highly trained police officers continues to be a problem as officers continue to leave Hawaii for higher paying positions on the mainland.  Providing officers with a maximum retirement incentive may help alleviate some of these shortages.

     However, your Committees have been informed by both the Attorney General and ERS that, as currently written, the bill only applies to police officers hired prior to 1928 and that statutory references and amendments need to be changed in order for the bill to achieve its intended purpose.  Accordingly, your Committees have amended this bill by deleting its contents and:

     (1)  Inserting language referencing the correct section of              statutes addressing the retirement of police officers;

     (2)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Labor & Public Employment and Public Safety & Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1817, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1817, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Labor & Public Employment and Public Safety & Military Affairs,

____________________________ CINDY EVANS, Chair

____________________________ ALEX M. SONSON, Chair