STAND. COM. REP. NO.  1790-12

Honolulu, Hawaii

                , 2012

RE:   S.C.R. No. 34

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.C.R. No. 34, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT AUDITS OF STATE DEPARTMENT OPERATIONS THAT RESULT IN HIGH NON-BASE COMPENSATION OF STATE AND COUNTY EMPLOYEES, PAY FOR NOT WORKING, AND SALARY OVERPAYMENTS,"

begs leave to report as follows:

The purpose of this measure is to improve government efficiency and address financial accountability by requesting the Auditor to conduct audits of State department operations that result in high non-base compensation of State employees, pay for not working, and salary overpayments.

The Department of Accounting and General Services, Department of Public Safety, Department of Human Resources Development, Department of Health, and a concerned individual testified in support of this measure.  The Department of Transportation provided comments.

     Your Committee has amended this measure by:

     (1)  Stating that the issue of "pension spiking" has an unfavorable effect on employees who do not adhere to this practice;

     (2)  Specifying that the Auditor review abuse of sick leave rather than excessive use of sick leave;

     (3)  Clarifying that the review of such practices as failure to report to work nevertheless resulting in current compensation and leave credits and in future favorable impact on pensions show the impact on pensions for the individuals involved in this practice;

     (4)  Stipulating that the Auditor also include as part of the audit a review of efforts being made to resolve the issues causing salary overpayments;

     (5)  Amending the title to read:  "REQUESTING THE AUDITOR TO CONDUCT AUDITS OF STATE DEPARTMENT OPERATIONS THAT RESULT IN HIGH NON-BASE COMPENSATION OF STATE EMPLOYEES, PAY FOR NOT WORKING, AND SALARY OVERPAYMENTS"; and

     (6)  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 concurs with the intent and purpose of S.C.R. No. 34, S.D. 1, as amended herein, and recommends that it be referred to the Committees on Finance and Legislative Management in the form attached hereto as S.C.R. No. 34, S.D. 1, H.D. 1.

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

____________________________

KARL RHOADS, Chair