HB1536 HD2.DOC

SECTION 1. The downturn in the United States and global economy caused by the credit crisis, volatility in the mortgage and financial-securities markets, fluctuations in oil prices, and the resulting uncertainty has affected Hawaii and its people. Unemployment has risen, and additional declines in tourism and retail sales are anticipated.

The State is facing a projected $1,100,000,000 budget shortfall for the balance of fiscal year 2009 and the biennium.

The purpose of this Act is to freeze the salaries of certain members of the executive, legislative, and judicial branches of the State in recognition of the current fiscal situation and to lead by example in demonstrating to the people of Hawaii that public officials are doing their share to conserve scarce public resources.

SECTION 2. (a) Notwithstanding any law to the contrary, until June 30, 2011, the annual salaries for the governor, the lieutenant governor, the justices and judges of all state courts, the administrative director of the State or an equivalent position, and the department heads or executive officers and the deputies or assistants to the department heads or executive officers of the departments of:

(1) Accounting and general services;

(2) Agriculture;

(3) The attorney general;

(4) Budget and finance;

(5) Business, economic development, and tourism;

(6) Commerce and consumer affairs;

(7) Defense;

(8) Hawaiian home lands;

(9) Health;

(10) Human resources development;

(11) Human services;

(12) Labor and industrial relations;

(13) Land and natural resources;

(14) Public safety;

(15) Taxation; and

(16) Transportation,

shall remain the same as they were on January 1, 2009; provided that on July 1, 2011, the salaries of these positions shall be increased to the level they would have been on July 1, 2011, under the recommendations of the commission on salaries and in the absence of the salary freeze under this Act; provided further that the recommendations of the commission on salaries for salary increases for these positions effective July 1, 2012, shall become effective on that date.

(b) Notwithstanding any law to the contrary, until December 31, 2011, the annual salaries of members of the legislature shall remain the same as they were on January 1, 2009; provided that on January 1, 2012, the salaries of the members of the legislature shall be increased to the level they would have been on January 1, 2012, under the recommendations of the commission on salaries and in the absence of the salary freeze under this Act; provided further that the recommendations of the commission on salaries for salary increases for the members of the legislature effective January 1, 2013, and January 1, 2014, shall become effective on those dates.

(c) This section shall not be construed to impart any right to additional compensation previously authorized through the adoption of the commission on salaries' recommendations for:

(1) The period from January 1, 2009, through July 1, 2011, for positions covered under subsection (a); and

(2) The period from January 1, 2009, through December 31, 2011, for positions covered under subsection (b).

(d) This section shall not be enforced to the extent that it is preempted by federal law.

SECTION 3. This Act shall take effect on June 30, 2009.

HOUSE OF REPRESENTATIVES	H.B. NO.	1536
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 2
STATE OF HAWAII