STAND. COM. REP. NO. 2039

Honolulu, Hawaii

RE:    S.B. No. 1065

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 1065 entitled:

"A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR COLLECTIVE BARGAINING COST ITEMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide a legislative vehicle for an emergency appropriation to fund public sector collective bargaining cost items for salary adjustments and other cost adjustments for public employees in collective bargaining unit (11) and their excluded counterparts for fiscal biennium 2011-2013.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance and Hawaii Fire Fighters Association, IAFF Local 1463, AFL-CIO.

     Your Committee finds that after more than two years of negotiation and arbitration proceedings, the arbitration panel issued an award on November 15, 2013.  This award includes changes to a number of sections of the collective bargaining contract and salary and benefit adjustments for collective bargaining unit (11).  This measure provides a legislative vehicle to effectuate the terms and conditions of the arbitrated award for public employees in collective bargaining unit (11).

     Although the arbitrated award costs have already been included in the Fiscal Year 2015 Executive Supplemental Budget, your Committee notes that the Governor's Office is expected to issue the appropriate emergency appropriation declaration to cover the arbitrated award costs.

     Your Committee has amended this measure by adopting the suggested language submitted by the Department of Budget and Finance that:

     (1)  Changes the title for program ID BUF 101 from "program planning, analysis, budgeting" to "departmental administration and budget division" to reflect the appropriate program ID title;

     (2)  Changes the fiscal biennium from 2011-2013 to 2013-2015;

     (3)  Adds appropriations for employer contribution amounts to cover Hawaii Employer-Union Health Benefits Trust Fund health benefit plan premiums for public employees in collective bargaining unit (11) and their excluded counterparts for fiscal biennium 2013-2015;

     (4)  Inserts specified amounts for collective bargaining cost items for salary adjustments, other cost adjustments, and Hawaii Employer-Union Health Benefits Trust Fund costs for public employees in collective bargaining unit (11) and their excluded counterparts for fiscal biennium 2013-2015; and

     (5)  Makes technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1065, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1065, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair