STAND. COM. REP. NO. 470-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1736

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 1736, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to temporarily allow licensed teachers who have retired to be employed as teachers during a state of emergency and within twelve months of their retirement.

Your Committee received testimony in support of this measure from the Department of Education, Hawaii State Teachers Association, and one individual. Your Committee received testimony in support of the intent of this measure from the Employees' Retirement System.

Your Committee finds that the State has been experiencing a chronic teacher shortage, making it very challenging to provide quality education for Hawaii's students. The teacher shortage in Hawaii has been exacerbated by the COVID-19 pandemic, with many teachers having to stay home from work because of exposure to COVID-19 or to take care of their loved ones who are sick with COVID-19.

Your Committee further finds that during the 2020-2021 academic year, over four hundred teachers retired. The employment of these recently retired teachers can help to address the current shortage of teachers; however, existing law prevents the retired teachers from doing so. This measure will temporarily authorize recently retired licensed teachers to continue to teach during a state of emergency.

Your Committee has amended this measure by changing its effective date to July 1, 2051.

Your Committee notes the concerns from the Employees' Retirement System in its testimony regarding the potential negative impact this measure may have on the Employees' Retirement System's status as a qualified governmental plan under the Internal Revenue Code. Specifically, the Employees' Retirement System is concerned about any pre-existing agreements or expectations of a retiring employee to return to work, incentivizing currently employed teachers to retire early, and the timing and duration of reemployment for retired teachers. Your Committee respectfully requests your Committee on Finance, should it decide to deliberate on this measure, to consider the Employees' Retirement System's concerns.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1736, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1736, H.D. 2.

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

____________________________

JUSTIN H. WOODSON, Chair