STAND. COM. REP. NO. 1096

Honolulu, Hawaii

RE:    H.B. No. 234

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 234, H.D. 1, 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 repeal the voluntary severance benefit option for employees of the Hawaii Health Systems Corporation whose positions will be abolished or directly affected by a reduction-in-force, workforce restructuring plan, or privatization.

     Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and thirty-four individuals.  Your Committee received testimony in opposition to this measure from the Employees' Retirement System.  Your Committee received comments on this measure from the Department of Budget and Finance and Hawaii Health Systems Corporation.

     Your Committee finds that Act 1, Special Session Laws of Hawaii 2016, provided options to assist public employees who may be displaced through the privatization or closure of a Hawaii Health Systems Corporation facility and reduce the need for layoffs.  Specifically, Act 1 authorized the Hawaii Health Systems Corporation to offer a severance or a special retirement benefit to an employee who elects to separate from service when the employee's position is identified for abolishment or when the employee is directly affected by a reduction-in-force or workforce restructuring plan, including privatization.  This measure removes the option of voluntary severance benefits.

     Your Committee has amended this measure by inserting 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. 234, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 234, H.D. 1, 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