STAND. COM. REP. NO. 2432

Honolulu, Hawaii

RE: S.B. No. 2599

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 S.B. No. 2599 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE COMPENSATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Prohibit a board or commission from authorizing a base salary for a position; and

(2) Prohibit an employee from receiving a base salary,

in excess of the amount designated in the budget enacted by the Legislature or other legislative enactment, unless approved by the Legislature.

Your Committee received comments on this measure from the Department of Human Resources Development and the Board of Regents of the University of Hawaiʻi.

Your Committee finds that salaries should be commensurate with appropriate qualifications and the gravity of the position. However, for certain state positions in the Executive Branch, a board and commission may have the authority to set a base salary. This measure provides for appropriate compensation for certain Executive Branch positions to ensure the accomplishment of state goals and operations.

Your Committee notes the discussion held during the public hearing on this measure that a more direct approach of having the Legislature approve the salary increases of all board and commission staff, and appropriate funds that it deems appropriate, may be preferable rather than giving the boards and commissions authority to set the salary of their staff but imposing limitations and requiring them to obtain legislative approval. Your Committee finds that this issue raises concerns that merit further consideration and respectfully requests further examination by subsequent committees to which this measure is referred.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

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 S.B. No. 2599, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2599, 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,

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HENRY J.C. AQUINO, Chair