STAND. COM. REP. NO. 1301

Honolulu, Hawaii

RE:    H.B. No. 697

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committees on Judiciary and Labor and Ways and Means, to which was referred H.B. No. 697 entitled:

"A BILL FOR AN ACT MAKING APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS,"

beg leave to report as follows:

     The purpose and intent of this measure is to provide a legislative vehicle to appropriate unspecified employer contribution amounts to cover Hawaii Employer-Union Health Benefits Trust Fund health benefit plan premiums and other cost-adjustments for officers and employees of specified legislative agencies.

     Your Committees received testimony in support of this measure from the Hawaii State Ethics Commission, Office of the Auditor, Legislative Reference Bureau, and Office of the Ombudsman.

     Your Committees find that the legislative service agencies are excluded from collective bargaining, but that compensation and benefits for their officers and employees are tied to the collective bargaining agreements between the public employer and the exclusive representative of applicable collective bargaining units.  This measure provides a legislative vehicle in the event that the public employer and the exclusive representative of the applicable collective bargaining units come to an agreement over cost items during the legislative session.

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 697, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 697, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Ways and Means,

____________________________ DAVID Y. IGE, Chair

____________________________ CLAYTON HEE, Chair