STAND. COM. REP. NO.  1301-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2493

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 2493 entitled:

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR COLLECTIVE BARGAINING COST ITEMS,"

begs leave to report as follows:

The purpose of this bill is to fund:

(1)  All collective bargaining cost items in the agreement negotiated with the exclusive bargaining representative of collective bargaining unit (5); and

(2)  The salary increases and other cost adjustments authorized by Chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining.

     The Hawaii State Teachers Association (HSTA) testified in support of this bill.  The Department of Education (DOE), Department of Budget and Finance (B&F), and Office of Collective Bargaining (OCB) testified in opposition to this measure.

     Though Act 132, Session Laws of Hawaii 2007 (Act 132), appropriated $43.9 million for fiscal year 2008 and $75.5 million for fiscal year 2009 for collective bargaining cost items for bargaining unit (5), HSTA stated that additional funding is necessary to pay for an annual incremental step movement negotiated in its contract with the State.

     Your Committee notes that although DOE, B&F, and OCB believe that all negotiated cost items were already addressed by Act 132, your Committee finds that this measure should proceed for further discussion.

     Although no sums have been appropriated or authorized from the sources of funding indicated in this measure, your Committee believes that a vehicle for funding these collective bargaining cost items, including salary increases and other cost adjustments, should continue to advance in the Legislature.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2059, to encourage further discussion; and

     (2)  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 S.B. No. 2493, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2493, 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