STAND. COM. REP. NO.  344-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2606

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2606 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to establish a retirement benefit incentive for public employees, otherwise eligible to retire, whose positions are subject to layoff due to the consolidation or abolition of functions, or the privatization of the functions of the position.

The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, the United Public Workers, AFSCME Local 646, AFL-CIO, and several individuals testified in support of this measure.  The Department of Budget and Finance testified in opposition.  The Employees' Retirement System and an individual provided comments.

Your Committee has amended this measure by:

     (1)  Specifying that eligibility for members serving in positions identified for layoff due to the privatization of services is for members serving within the Maui regional system; and

     (2)  Inserting a sunset date of June 30, 2017.

     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. 2606, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2606, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

MARK M. NAKASHIMA, Chair