STAND. COM. REP. NO.  1763

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 207

      S.D. 2

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 207, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYEES,"

begs leave to report as follows:

The purpose of this measure, as received by your Committee, is to promote the establishment of shared leave programs for public employees.

     For the purposes of a public hearing on this bill, your Committee circulated S.B. No. 207, H.D. 2 (Proposed Draft), and notified the public that it would be accepting testimony on the Proposed Draft, which:

     (1)  Appropriates funds to the Department of Budget and Finance for collective bargaining cost items related to the transition of affected Maui region hospital employees to employment with Maui Health System, a Kaiser Foundation Hospitals LLC;

     (2)  Authorizes affected employees to purchase credited service to qualify for, or increase the percentage of, the base monthly contributions that the State pays to the Hawaii Employer-Union Health Benefits Trust Fund; and

     (3)  Repeals Chapter 89E, Hawaii Revised Statutes, and Act 1, Second Special Session, Session Laws of Hawaii 2016, which:

          (A)  Authorized Hawaii Health Systems Corporation employees facing position abolishment, reduction-in-force, or workforce restructuring to opt to receive either severance benefits or a special retirement benefit in lieu of exercising any reduction-in-force rights; and

          (B)  Required the State to pay a monthly contribution to the Hawaii Employer-Union Health Benefits Trust Fund for employees separated from service because of the privatization of the Maui regional system's health care facilities.

The Department of Budget and Finance and United Public Workers, AFSCME, Local 646, AFL-CIO testified in support of the Proposed Draft.  The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and several individuals testified in opposition to the Proposed Draft.  The Department of Accounting and General Services, Hawaii Employer-Union Health Benefits Trust Fund, and Hawaii Health Systems Corporation provided comments.

     After considering the merits of S.B. No. 207, H.D. 1, as received by your Committee, and the Proposed Draft, your Committee has amended this bill by adopting the Proposed Draft.  Your Committee further amended this measure by:

     (1)  Changing the appropriation amount to an unspecified amount;

     (2)  Changing its effective date to July 1, 2030, to facilitate further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 207, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 207, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair