SB 2672: DHRD; ERS; EUTF; Public Employment; Retirants; State and County Positions; 89-Day Contracts; Pilot Program; Report

A BILL FOR AN ACT

RELATING TO RETIRANTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the State faces persistent workforce shortages in key technical and specialized positions.  Retired state employees who possess institutional knowledge are often best suited to quickly fill these gaps.  However, retirants are currently limited to short-term, eighty‑nine-day contracts when returning to public employment.  This creates constant administrative turnover, prevents long‑term project management, and discourages retirees from returning to work for the State.

     Accordingly, the purpose of this Act is to establish a cost-neutral or cost-saving five-year pilot program to allow the State to rehire retirants into hard-to-staff positions for terms longer than eighty-nine days.

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii [National Guard] national guard and positions in the Hawaii [National Guard] national guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the university of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii [National Guard] national guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the [Med-QUEST] med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

    (38)  The software developer supervisor and senior software developers in the department of taxation;

    (39)  In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

    (40)  The state fire marshal [and], deputy state fire [marshal,] marshals, and assistant state fire marshals in the office of the state fire marshal;

    (41)  The administrator for the law enforcement standards board;

    (42)  In the office of the director of taxation, the data privacy officer and tax business analysts; [and

  [](43)[]] All positions filled by the Hawaii tourism authority within the department of business, economic development, and tourism[.]; and

    (44)  Retirants employed under section 88-9(d)(6).

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  Section 87A-1, Hawaii Revised Statutes, is amended by amending the definition of "employee-beneficiary" to read as follows:

     ""Employee-beneficiary" means:

     (1)  An employee;

     (2)  The beneficiary of an employee who is killed in the performance of the employee's duty, including:

          (A)  The surviving child, if there is no surviving parent who is eligible to be an employee‑beneficiary and the child is unmarried and under the limiting age as defined by the board; and

          (B)  The surviving spouse, if the surviving spouse does not subsequently remarry;

     (3)  An employee who retired [prior to] before 1961; and

     (4)  The beneficiary of a retired member of the employees' retirement system; a county pension system; or a police, firefighters, or bandsmen pension system of the State or a county, upon the death of the retired member, including:

       (A)     The surviving child, if there is no surviving parent who is eligible to be an employee‑beneficiary and the child is unmarried and under the limiting age as defined by the board; and

       (B)     The surviving spouse, if the surviving spouse does not subsequently remarry;

provided that the employee, the employee's beneficiary, or the beneficiary of the deceased retired employee is deemed eligible by the board to participate in a health benefits plan or long‑term care benefits plan under this chapter.  "Employee‑beneficiary" does not include any retirant employed under section 88-9(d)(6) for the duration of the retirant's employment under that section for employee-beneficiaries hired after June 30, 2026."

     SECTION 4.  Section 88-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:

     (1)  As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);

     (2)  As a juror or precinct official;

     (3)  As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2[[],[]] or as any other employee expressly excluded by law from membership in the system; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months [prior to] before the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement;

     (4)  In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months [prior to] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; [or]

     (5)  As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months [prior to] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability[.]; or

     (6)  In a position verified by the governor or any county mayor as an identified labor shortage or certified hard-to-staff position and for which employment for a period exceeding eighty-nine days would be beneficial; provided that:

          (A)  The position was publicly recruited for a minimum of fourteen days, in accordance with the requirements of chapter 76;

          (B)  No list of certified eligibles could be established for the position, or the list of certified eligibles was exhausted without a successful hire;

          (C)  The term of employment shall not exceed one year; provided that employment may be renewed for additional terms of one year; provided further that before each renewal the governor or any mayor shall verify that:

               (i)  The position remains identified as a labor shortage position or certified as a hard‑to‑staff position; and

              (ii)  A new recruitment effort pursuant to subparagraphs (A) and (B) was conducted but failed to identify a qualified non-retirant candidate;

          (D)  The retirant was not employed by the State or a county during the twelve calendar months before the first day of reemployment;

          (E)  No agreement was entered into between the State or a county and the retirant before the retirement of the retirant, for the return to work by the retirant after retirement;

          (F)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability;

          (G)  The retirant shall be included in the appropriate bargaining unit under section 89-6; and

          (H)  If the position is a state position, the appointing authority shall notify the department of human resources development of the retirant's employment and provide other information as required by the department of human resources development.

          For the purposes of this paragraph, "hard-to-staff" means a position for which the director of human resources development or respective appointing authority has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures; provided further that for the purposes of positions in the department of education, "hard‑to‑staff" includes positions eligible for shortage differential pay and in subject areas in which the number of unlicensed teachers exceeds a critical threshold, as determined by the department of education by rule."

     SECTION 5.  The department of human resources development shall submit a report on the implementation of this Act to the legislature no later than twenty days prior to the convening of the regular session of 2031.  The report shall include:

     (1)  For the period beginning on the effective date of this Act and ending on June 30, 2030:

          (A)  The number of reported retirants rehired by the State under section 88-9(d)(6), Hawaii Revised Statutes;

          (B)  A representative summary of the duration of the retirants' employment in a manner that protects personally identifiable information;

          (C)  The savings or estimated savings to the State; and

          (D)  Other information deemed relevant by the department of human resources development;

     (2)  A recommendation as to whether the program should be made permanent, modified, or terminated; and

     (3)  Any proposed legislation.

     SECTION 6.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on January 1, 2077; provided that on June 30, 2031, this Act shall be repealed and sections 76-16, 87A-1, and 88-9, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.

Report Title:

DHRD; ERS; EUTF; Public Employment; Retirants; State and County Positions; 89-Day Contracts; Pilot Program; Report

Description:

Establishes a five-year pilot program allowing retirants to be rehired for exempt service for one-year terms under certain circumstances.  Provides that retirants employed under the program are excluded from the Hawaii Employer-Union Health Benefits Trust Fund and will not experience an interruption of pension benefits.  Requires an employer of a retirant under the program to contribute to the Employees' Retirement System.  Requires the Department of Human Resources Development to submit a report to the Legislature.  Sunsets 6/30/2031.  Effective 1/1/2077.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to Retirants.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the State faces persistent workforce shortages in key technical and specialized positions.  Retired state employees who possess institutional knowledge are often best suited to quickly fill these gaps.  However, retirants are currently limited to short-term, eighty‑nine-day contracts when returning to public employment.  This creates constant administrative turnover, prevents long‑term project management, and discourages retirees from returning to work for the State.

     Accordingly, the purpose of this Act is to establish a cost-neutral or cost-saving five-year pilot program to allow the State to rehire retirants into hard-to-staff positions for terms longer than eighty-nine days.

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the university of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the [Med-QUEST] med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

    (38)  The software developer supervisor and senior software developers in the department of taxation;

    (39)  In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

    (40)  The state fire marshal and deputy state fire marshal in the office of the state fire marshal;

    (41)  The administrator for the law enforcement standards board;

    (42)  In the office of the director of taxation, the data privacy officer and tax business analysts; [and

[](43)[]] All positions filled by the Hawaii tourism authority within the department of business, economic development, and tourism[.]; and

    (44)  Retirants employed under section 88-9(d)(6).

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  Section 87A-1, Hawaii Revised Statutes, is amended by amending the definition of "employee-beneficiary" to read as follows:

     ""Employee-beneficiary" means:

     (1)  An employee;

     (2)  The beneficiary of an employee who is killed in the performance of the employee's duty, including:

          (A)  The surviving child, if there is no surviving parent who is eligible to be an employee‑beneficiary and the child is unmarried and under the limiting age as defined by the board; and

          (B)  The surviving spouse, if the surviving spouse does not subsequently remarry;

     (3)  An employee who retired [prior to] before 1961; and

     (4)  The beneficiary of a retired member of the employees' retirement system; a county pension system; or a police, firefighters, or bandsmen pension system of the State or a county, upon the death of the retired member, including:

       (A)     The surviving child, if there is no surviving parent who is eligible to be an employee‑beneficiary and the child is unmarried and under the limiting age as defined by the board; and

       (B)     The surviving spouse, if the surviving spouse does not subsequently remarry;

provided that the employee, the employee's beneficiary, or the beneficiary of the deceased retired employee is deemed eligible by the board to participate in a health benefits plan or long‑term care benefits plan under this chapter.  "Employee‑beneficiary" does not include any retirant employed under section 88-9(d)(6) for the duration of the retirant's employment under that section."

     SECTION 4.  Section 88-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:

     (1)  As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);

     (2)  As a juror or precinct official;

     (3)  As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2[[],[]] or as any other employee expressly excluded by law from membership in the system; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months [prior to] before the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement;

     (4)  In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months [prior to] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; [or]

     (5)  As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months [prior to] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant [prior to] before the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability[.]; or

     (6)  In a position verified by the governor or any county mayor as an identified labor shortage or certified hard-to-staff position and for which employment for a period exceeding eighty-nine days would be beneficial; provided that:

          (A)  The position was publicly recruited for a minimum of fourteen days, in accordance with the requirements of chapter 76;

          (B)  No list of certified eligibles could be established for the position, or the list of certified eligibles was exhausted without a successful hire;

          (C)  The term of employment shall not exceed one year; provided that employment may be renewed for additional terms of one year; provided further that before each renewal the governor or any mayor shall verify that:

               (i)  The position remains identified as a labor shortage position or certified as a hard‑to‑staff position; and

              (ii)  A new recruitment effort pursuant to subparagraphs (A) and (B) was conducted but failed to identify a qualified non-retirant candidate;

          (D)  The retirant shall not:

               (i)  Have been employed by the State or a county during the six calendar months before the first day of the initial reemployment; or

              (ii)  Have entered into an agreement for employment with the State or a county before retiring;

          (E)  The employer shall contribute the required percentage of compensation to amortize the system's unfunded actuarial accrued liability;

          (F)  The retirant shall be included in the appropriate bargaining unit under section 89-6 for the payment of dues and grievance protections;

          (G)  If the position is a state position, the appointing authority shall notify the department of human resources development of the retirant's employment and provide other information as required by the department of human resources development; and

          (H)  If the position is in the department of education, the superintendent may set a salary schedule for the position without regard to the standard collective bargaining agreement salary step placement; provided further that the salary shall not exceed the maximum step of the position's classification.

          For the purposes of this paragraph, "hard-to-staff" means a position for which the director of human resources development or respective appointing authority has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures; provided further that for the purposes of positions in the department of education, "hard‑to‑staff" includes positions eligible for shortage differential pay and in subject areas in which the number of unlicensed teachers exceeds a critical threshold, as determined by the department of education by rule."

     SECTION 5.  The department of human resources development shall submit a report on the implementation of this Act to the legislature no later than twenty days prior to the convening of the regular session of 2031.  The report shall include:

     (1)  For the period beginning on the effective date of this Act and ending on June 30, 2030:

          (A)  The number of reported retirants rehired by the State under section 88-9(d)(6), Hawaii Revised Statutes;

          (B)  A representative summary of the duration of the retirants' employment in a manner that protects personally identifiable information;

          (C)  The savings or estimated savings to the State; and

          (D)  Other information deemed relevant by the department of human resources development;

     (2)  A recommendation as to whether the program should be made permanent, modified, or terminated; and

     (3)  Any proposed legislation.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval; provided that on June 30, 2031, this Act shall be repealed and sections 76-16, 87A-1, and 88-9, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.

Report Title:

DHRD; ERS; EUTF; Public Employment; Retirants; State and County Positions; 89-Day Contracts; Report

Description:

Establishes a five-year pilot program allowing retirants to be rehired for exempt service for one-year terms under certain circumstances.  Provides that retirants employed under the program are excluded from the Hawaii Employer-Union Health Benefits Trust Fund and will not experience an interruption of pension benefits.  Requires an employer of a retirant under the program to contribute to the Employees' Retirement System.  Requires the Department of Human Resources Development to submit a report to the Legislature.  Sunsets 6/30/2031.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2316

Honolulu, Hawaii

RE:     S.B. No. 2672

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 2672 entitled:

"A BILL FOR AN ACT RELATING TO RETIRANTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish a five-year pilot program allowing retirants to be rehired for exempt service for one-year terms under certain circumstances;

     (2)  Provide that retirants employed under the program are excluded from the Hawaii Employer-Union Health Benefits Trust Fund and will not experience an interruption of pension benefits;

     (3)  Require an employer of a retirant under the program to contribute to the Employees' Retirement System; and

     (4)  Require the Department of Human Resources Development to submit a report to the Legislature.

     Your Committee received testimony in support of this measure from the State Fire Council and Office of the Mayor of the County of Maui.

     Your Committee received comments on this measure from the Department of the Attorney General and Employees' Retirement System.

     Your Committee finds that there is a labor shortage in the State that makes it difficult to fill certain positions in the public sector.  Your Committee also finds that hiring retirants who are qualified and trained for these positions allows vacancies to be filled more efficiently.  This measure facilitates the rehiring of retirants in positions identified as labor shortage or hard-to-staff.

     Your Committee acknowledges the concerns raised in testimony by the Department of the Attorney General that language in the measure limiting the purposes of a rehired retirant's inclusion in the appropriate bargaining unit to the payment of dues and grievance protections and language authorizing the Superintendent of the Department of Education to set a salary schedule for positions filled by rehired retirants in the Department of Education without regard to the standard collective bargaining agreement salary step placement, would conflict with state law governing collective bargaining in public employment.  Your Committee also notes the request by the Employees' Retirement System to extend the break in service required for retirants to be rehired under this measure from six calendar months to twelve calendar months to match the conditions for other rehired retirants.  Therefore, amendments to this measure are necessary to address these concerns and request.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language to include assistant state fire marshals in the Office of the State Fire Marshal in the list of positions exempt from chapter 76, Hawaii Revised Statutes (HRS) under section 76-16, HRS;

     (2)  Clarifying the definition of "employee-beneficiary" excludes retirants employed under section 88-9(d)(6), HRS for the duration of the retirant's employment under that section for employee-beneficiaries hired after June 30, 2026;

     (3)  Changing the required break in service for a retirant to be rehired, from six calendar months to twelve calendar months;

     (4)  Deleting language that would have limited the purposes of a rehired retirant's inclusion in the appropriate bargaining unit under section 89-6, HRS, to the payment of dues and grievance protections;

     (5)  Deleting language that would have authorized the Superintendent of the Department of Education to set a salary schedule for positions filled by rehired retirants in the Department of Education without regard to the standard collective bargaining agreement salary step placement;

     (6)  Inserting a savings clause;

     (7)  Inserting an effective date of January 1, 2077, to encourage further discussion; and

     (8)  Making technical, nonsubstantive amendments 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 S.B. No. 2672, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2672, 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,