STAND. COM. REP. NO.  680

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2508

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2508 entitled:

"A BILL FOR AN ACT RELATING TO THE USE OF FUNDS FOR PUBLIC EMPLOYMENT COSTS,"

begs leave to report as follows:

The purpose of this measure is to prohibit funds appropriated or authorized for state salaries and wages for employee positions that are vacant from being expended for any other purposes, including vacation credit or vacation allowance costs for transferred or discharged employees.

     One individual submitted testimony in support of the measure.  The Department of Accounting and General Services, Department of Education, Department of Defense, and Office of Planning submitted testimony in opposition to the measure.  Your Committee received comments on this measure from the Department of Budget and Finance, the Department of Economic Business, Development, and Tourism, the Public Safety Department, and the High Technology Development Corporation.

     Your Committee finds that this measure will increase accountability, promote transparency in the appropriation and expenditure of public moneys, and remove the incentive for departments to keep vital state employment positions vacant.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2508 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair