STAND. COM. REP. NO.  445

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1818

      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 Committee on Labor & Public Employment, to which was referred H.B. No. 1818 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to permit the state and county governments to rehire retired employees as permanent employees in critical-to-fill or labor shortage positions, without affecting the retirement benefits of the rehired retirees.

     The Judiciary, Honolulu Police Department, Hawaii Police Department, Hawaii Government Employees Association, Hawaii State Teachers Association, and a concerned individual testified in support of this bill.  The Department of Education and City & County of Honolulu Department of Human Resources supported the intent of this measure.  The County of Maui Department of Personnel Services, County of Maui Police Department, County of Maui Department of the Prosecuting Attorney, and County of Maui Department of Water Supply opposed this bill.  The Department of Human Resources Development and Employees' Retirement System (ERS) offered comments.

     Your Committee has amended this bill by:

     (1)  Changing all references to "retiree" to "retirant" for consistency;

     (2)  Clarifying that retirants may be rehired for exempt positions;

     (3)  Specifying that the provisions of the bill are exempt from sections 88-21, 88-42.5, 88-43, 88-45, 88-46, 88-98, 88-273, 88-325, 88-326, and 88-344;

     (4)  Setting employer contributions to the ERS Fund to 15.75 percent of the rehired retirant's compensation for police officers, firefighters, and corrections officers, and 13.75 percent for all other employees;

     (5)  Changing the effective date to July 1, 2059, to encourage further discussion;

     (6)  Inserting a repeal date of five years from the effective date of the Act; and

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

     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. 1818, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1818, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair