STAND. COM. REP. NO.  217

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 835

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 835 entitled:

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII, SECTION 6, OF THE HAWAII CONSTITUTION, RELATING TO THE DISPOSITION OF EXCESS REVENUES,"

begs leave to report as follows:

     The purpose of this bill is to provide a mechanism to reduce unfunded liabilities for pension benefits and other post-employment benefits for state employees by using excess general fund revenues in years when the excess equals or exceeds seven percent.

     The Legislative Committee of the Employees' Retirement System and the Hawaii Fire Fighters Association supported this measure.  The Department of Budget and Finance supported the intent of this bill.

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

     Your Committee is concerned with the unfunded liabilities for state employee pension benefits.  It is important to fully fund these and by using excess revenues to do this, other state programs and funds will not be affected.

     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. 835, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 835, H.D. 1, and be referred to the Committee on Judiciary.

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

____________________________

KARL RHOADS, Chair