STAND. COM. REP. 1082

Honolulu, Hawaii

, 2003

RE: S.B. No. 1332

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 1332, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE COMPENSATION OF OFFICIALS IN THE EXECUTIVE BRANCH OF STATE GOVERNMENT,"

begs leave to report as follows:

The purpose of this bill is to update outdated salaries of the Executive Branch by:

(1) Establishing an Executive Salary Commission (Commission) to review salaries of the Governor, Lieutenant Governor, and other executive officials and make recommendations for salary increases to the Legislature;

(2) Providing that the recommendation of the Commission take effect at the beginning of the fiscal year after the year in which the recommendation is made; and

(3) Providing for legislative oversight by allowing for the rejection of a recommended salary increase by the Commission by a three-fourths vote of each house of the Legislature.

The Department of Human Resources Development, Department of the Attorney General, and Judiciary testified in support of this measure.

Salaries of officials of the Executive Branch are statutorily established. The present Executive Branch officials' salaries have not been modified since 1990, resulting in grossly outdated salaries when compared to other states and the private sector. At times this has caused difficulties in attracting the most highly qualified candidates. Moreover, many subordinates of executive branch officials who are covered by collective bargaining have received salary increases that at times have been higher than their supervisors.

Your Committee finds that salary commissions have been established in both the Legislative and Judicial Branches of government, as well as in the counties, to review and update compensation of various officials. This same process can be applied to the Executive Branch in order to maintain updated salaries that are at a level commensurate with responsibilities.

However, your Committee notes that the Commission of Legislative Salaries is constitutionally established and required to meet every eight years to make recommendations regarding salary increases for legislative officials. Your Committee feels that the process applied to legislative salaries should also apply to executive salaries. Accordingly, your Committee has amended this measure by:

(1) Requiring the Commission to convene in the month of November 2003, and every eight years thereafter, to make recommendations regarding salary increases of the Governor, Lieutenant Governor, and other executive officials;

(2) Requiring the Commission to submit a report of its findings and recommendations to the Legislature, through the Governor, not later than the fortieth legislative day of the Regular Session of 2004, and every eight years thereafter;

(3) Specifying that the recommended salaries submitted by the Commission shall become effective July 1 of the fiscal year after the legislative session in which the recommendation is submitted;

(4) Providing for legislative disapproval of the salary recommendations of the Commission through the adoption, by a simple majority vote of both houses of the Legislature, of a concurrent resolution prior to adjournment sine die of the legislative session in which the recommendation is submitted;

(5) Providing for the Governor's disapproval of the salary recommendations of the Commission by a message of disapproval transmitted to the Legislature prior to adjournment sine die; and

(6) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1332, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1332, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

MARCUS R. OSHIRO, Chair