STAND. COM. REP. NO. 3027

Honolulu, Hawaii

RE:    H.B. No. 2606

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 2606, H.D. 2, entitled:

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

begs leave to report as follows:

     The purpose and intent 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 as a result of Act 103, Session Laws of Hawaii 2015.

     Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and numerous individuals.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance and Employees' Retirement System.

     Your Committee finds that public employees whose positions are subject to layoff due to the consolidation or abolition of functions, or the privatization of the functions of the position, may face excessive economic hardship.  Implementation of this measure will provide meaningful financial support to public employees who lose their jobs out of no fault of their own.

     Your Committee has amended this measure by deleting its contents and inserting the contents of S.B. No. 3000, S.D. 1 (Regular Session of 2016), a substantively similar measure, which:

     (1)  Establishes 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 positions;

     (2)  Has a sunset date of July 1, 2018; and

     (3)  Has an effective date of January 7, 2059, to encourage further discussion.

     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 H.B. No. 2606, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2606, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

GILBERT S.C. KEITH-AGARAN, Chair