STAND. COM. REP. NO.  365-16

 

Honolulu, Hawaii

                , 2016

 

RE:   H.B. No. 2008

      H.D. 1

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2008 entitled:

 

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

(1)  Prohibit the State from hiring any person for more than one 89-day term for a fully or partially general-funded position during that person's lifetime; and

 

(2)  Exempt the following:

 

(A)  Certain contracts for which a contracting process is established by law;

 

(B)  The counties; and

 

(C)  The Legislature.

 

     The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO supported this measure.  The Department of Health; Department of Hawaiian Home Lands; Department of Agriculture; Department of Taxation; Department of Public Safety; State Ethics Commission; Campaign Spending Commission; Department of Land and Natural Resources; Department of Transportation; Department of Education; Department of the Attorney General; Hawaii Public Housing Authority; Hawaii Health Systems Corporation; Department of Business, Economic Development, and Tourism; Ethics Commission of the City and County of Honolulu; and two concerned individuals opposed this measure.  The Department of Budget and Finance; Department of Human Resources Development; Department of Accounting and General Services; University of Hawaii; and the Office of Enterprise Technology Services commented on this measure.  

 

     Your Committee has amended this measure by:

 

     (1)  Changing the allowable 89-day term to two terms;

 

     (2)  Expanding the exceptions to include:

 

          (A)  Seasonal hires by the Department of Taxation; and

 

          (B)  Bona fide employees that were held over after retirement for training purposes with a training plan filed with the Department of Human Resources Development; and

 

     (3)  Changing the effective date to July 1, 2017.

 

     Your Committee notes the concerns raised by the Department of Budget and Finance regarding the lack of pension contributions to the Employees' Retirement System, which are estimated between $3,000,000 to $4,000,000 per year, for 89-day term employees.  Should the Committee on Finance further deliberate on this measure, your Committee respectfully requests that it examine how to balance department operational concerns and general fund liability.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2008, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2008, H.D. 1, and be referred to your Committee on Finance.

 

 

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

 

 

 

 

____________________________

MARK M. NAKASHIMA, Chair