STAND. COM. REP. NO. 3136

Honolulu, Hawaii

RE: H.B. No. 2489

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred H.B. No. 2489, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX ADMINISTRATION,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt senior software developers in the Department of Taxation from civil service.

Your Committee received testimony in support of this measure from the Department of Taxation.

Your Committee received testimony in opposition to this measure from the Hawaii Government Employee Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that the Department of Taxation has found it difficult to recruit and retain experienced software developers, as the experience and skillset needed to perform this type of work and the commensurate salary exceed what is currently provided by civil service. Your Committee further finds that by creating a category of exempt senior software developers, the Department will be able to attract and retain skilled employees more easily. Therefore, this measure will create a long-term career path for software developers to remain with the State and decrease the Department's reliance on contracted services.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2489, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2489, 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 Labor and Technology,

________________________________

HENRY J.C. AQUINO, Chair