Senate Standing Committee on Labor and Technology

Okay. Good afternoon. It's Monday, March 10th. We're in Conference Room 224. 3pm agenda for the Labor and Technology Committee. This meeting is being streamed live on YouTube.

In the unlikely event that we have to abruptly end this hearing due to technical difficulties, the committee will reconvene to discuss any outstanding business at 3:01pm on Wednesday, March 12 in room 224. And a public notice will be posted on the legislature's website. And we do have a one minute testimony limit. Okay. Okay.

Let's proceed to the agenda. House Bill 423, House Draft 2, related to workers' compensation, clarifies the process for selecting a certified provider of rehabilitation services. Requires providers to automatically approve vocational rehabilitation services for an injured employee if those services will be likely to be required for suitable, gainful employment. Okay, up first, we have D. Herd, Director.

Director Hashimoto.

We stand in support and we'll stand on our written comments providing recommended.

Okay, thank you very much, Director. Up next, we have Hawaii Insurance Council, Malia Leong—testimony in support. Hawaii Medical Association (HMA), Dr. Elizabeth Ignacio—in support. Department of Labor and Industrial Relations, Director. Thank you very much. I believe that's all. That's it for House Bill 423. Any others wishing to testify? Okay, seeing none.

I have a quick question for D. Heard. Thank you, Director, for being here. There’s specific amendments that you're requesting regarding the timeline. Maybe you could help us through that, to better understand what you're requesting.

Yes. So we suggested that the measure include a timeframe, just to make sure that all parties are operating under the same time timetable. And so, we've suggested that the plan be advanced no later than 90 days after the provider submits the initial evaluation, without any timetable.

It could leave the matter ambiguous in terms of what the expectation is. And we've also added in, towards the middle part of paragraph F, that the plan should be submitted to the employer and the employee, and filed with the Director within two days, just to ensure that things move timely through the process.

Okay, thank you very much, Director. Let's move on to the next measure. House Bill 480, House Draft 1. Another workers comp Bill authorizes an attending physician to request a functional capacity exam and refer an injured employee for the exam without first obtaining permission from the employee's employer.

It allows licensed occupational and physical therapists to be deemed qualified to perform functional capacity exams. Okay, up first we have Director Hashimoto.

Okay, thank you very much again. Hawaii Insurance Council, Milia Leong, and support. We do have late testimony from Dr. Elizabeth Ignacio.,Hawaii Medical Association can support. Department of Labor. Thank you very much. Any other specialty to testify. Hospital 480, House Draft 1. We're seeing none. Let's move on to the next measure. Hospital 162 related to collective bargaining.

Authorizes HLRB to request the Federal Mediation and Conciliation Service to furnace a list—furnish a list—of five qualified and experienced interest arbitrators.

In the event the parties fail to select the third neutral third member of the arbitration, panel clarifies that the list of the five interest arbitrators may contain arbitrators from both the ABA as well as the Federal Mediation and Conciliation Service. Okay, up first, we have United Public Workers. Okay, thank you very much. We have HGA.

Chair, Nui Sebast here with HGA. We'll send in our testimony of strong support. I just do want to reemphasize that we're really looking to increase the pool of interest arbitrators by adding the FMCS as another organization that can provide arbitrators. Thank you.

Thank you very much. Up next, we have the Hawaii State AFL CIO President, Randy Pereira, in support. Any others wishing to testify, House Bill 162, House Draft 2? Okay, let's move on to the next measure, House Bill 164, okay, House Draft 1. Okay, relating to indebtedness to the state. Okay. First, we have DAGS.

Administrator for Accounting Human Services. We stand on our written testimony and offering comments.

Okay, thank you very much. Okay, up next, we have United Public Workers. Thank you very much. HGEA.

Chair Nui Sebast here with HGEA. We stand in strong support. And I just do want to reemphasize that this Bill is intended for employees that make less than $3,000 per paycheck.

I also do want to note that on subsection F3B, which is tier three of this Bill, there is a slight on the percentage of it for employees that make more than $3,000 per pay period. It's 5%. We have no objection. Should this Committee want to increase it to 25% to be in alignment with the current statute. Thank you.

Thank you very much. Okay, up next, we have the Hawaii State Public Library System Director Stacey Aldrich with comments. Any others wishing to testify. Hospital164. Seeing none. I have a quick question for DAGS. Thank you for being here. We heard a similar measure. Yeah.

And it seemed to me that DAGS was more than willing to accommodate the intent of the Bill and noticing that the testimony is a little bit different this time around. Is there any specific reason why.

I think it's very similar. We're offering comments with the tears. We're just. We're concerned about the percentage and the lowering of the minimum for to extend it so long. It will be extended extensively if it's that Low.

Well. Not quite sure if that was clear the last time. I know that it was mentioned that the amortization will extend, but it seems like it's a bigger concern this time around and we're just wondering why. Well, the fact. Well, the question is now, can you folks do the changes that the Bill is requesting for.

Yes. The system is capable of accepting them.

Okay, thank you very much. Okay, thank you. Moving on to the next measure, House Bill 1152, House Draft 1. Okay. Related to tax Administration. This permanently exempts the software developer supervisor in the in dotax and the Data Privacy Officer and Tax Business Analysis in the Office of the Director of Taxation from Civil Service. Okay.

First, we have dual tax director.

Good afternoon Chair, Gary Suganuma, Director of Taxation. The Department supports this administration measure which seeks to exempt from civil service three highly specialized positions. The positions are identified within our written testimony, so I'm not gonna go over that. But I'd just like to point out that the three positions.

There are no civil service positions existing for these three positions that we want. And I'm here to answer any questions you have.

Okay, thank you very much. Okay, up next, we have Tax foundation of Hawaii, Tamiya Machika on Zoom.

They're not present on Zoom.

Chair, thank you very much. With comments. Any others wishing to testify? House Bill 1152. Seeing none, I have no questions. So let's move on to the next measure.

House Bill 214, House Draft 1, relating to government allows a retirement to be employed without re enrollment to the ERs and without loss or interruption of retirement benefits if the retirement is employed as a school resource officer or investigator in positions identified in the DLE or the Department of Attorney General, respectively, as a labor shortage or difficult to fill positions subject to certain conditions.

Okay, up first we have the ERS Executive Director, Mr. Williams.

Good afternoon, Chair Aquino. I'm Tom Williams, the Director of the Employees Retirement System. You have our testimony expressing some concerns about potential reduction in the period from 12 months to 6 months required for separation from service before returning. 12 months is considered a good solid number by the ERS. 6 months. We probably are.

We don't oppose, but we would really be concerned if it were to go below. But a couple of concerns not addressed in our testimony really relates to the operation and Administration of the ers and the tax laws require that we administer our plan uniformly.

And I am personally concerned that delegation of the determination of difficult to fill or shortage positions to individual agencies may result in different results, different implementation, and could in the aggregate cause our plan to become disqualified. There are also some cost implications when plans allow people to retire earlier than they otherwise would.

I'm pleased to answer any questions you might have.

Okay. Thank you very much. So that is our bell now, because I was told that the last hearing I did not adhere to my own limits. So if you guys hear a certain bell behind me or some noise, that's your time to wrap it up. Thank you very much. So that's a very good example. What to do.

Thank you very much. Mr. Okay. Okay. Department of the Attorney General, Diane Wong.

Good afternoon, Chair Aquino. My name is Jenny Nakamoto for the Department of the Attorney General. We did submit written testimony in support of the portion of the bill for investigators for the Department, and we also submitted comments regarding the school resource officers intended to help effectuate the intent of the bill. Available for questions.

Thank you very much. Department of Education Superintendent Hayashi. Okay. Written testimony and support. Hga. Okay. Thank you very much. Okay. And we have Department of Law Enforcement Director.

Good afternoon, sir. My name is Jared Ridola. I'm the Deputy Director for DLE Department is in support of this measure. We very respectfully request that the Committee consider an amendment to allow our investigators, similar to the Department of the Attorney General's investigators, also be covered under this Bill. Thank you.

Okay. Thank you very much. Okay. Any others wishing to testify on House Bill 214, House Draft 1. No questions. Let's move on to the next measure.

House Bill 874, House Draft 3, okay, related to child performers, amends the Uniform Custodial Trust Act to specify that for a minor in theatrical employment with a gross income of at least $5,000 on a project or $20,000 in a calendar year, a parent or legal guardian of the minor is required to establish a trust fund, a trust account, for the minor with an independent third party trustee, and the employer of the minor is required to deposit a portion of the minor's earnings into the trust account until the minor becomes an adult. Okay, makes a misappropriation or fraudulent use of funds within the trust account a breach of fiduciary duty, subject to penalties at a defective date.

Okay. Up first, we have the SAG-AFTRA Hawaii Local. Ms. Elmore. Hello.

Hi. Good afternoon. My Name is Marisha Palma Elmore and I'm the Executive Director of the Hawaii SAG-AFTRA. And thank you so much for hearing this Bill. It's gone through and we've had a lot of discussion on the House side about it. And I just want to say thank you so much for hearing it.

And the amendments there are sound, the ones that came in under CPC. So, we support those amendments. We support the Bill. And I wanted to call attention real quick. I know there's some discussion about social media and social media performers, and it's in my testimony, too.

But I think it's good to, you know, remind folks that according to Forbes, at the last count, $250 billion is the figure for the, for how much money is made in the social media and social media influencer world. And they're projecting that to grow to $500 billion by 2027.

And while most people think it's mostly just influencers and "get ready with me" and a lot of that kind of content, a lot of it really is family content where whole families would post about their families.

And you know, I understand some of the, the issues on, on different sides of, of how this can be enforced or where really we can go with this. But I just wanted to say thank you so much for allowing me the opportunity to testify.

And there's also a policy paper that I wrote with a lot more of the statistics. Thank you so much. Oh, look, I got played out.

Thank you very much. Okay, Pride at Work Hawaii, on Zoom.

Not present on Zoom, Chair.

Okay, thank you very much. In support. Okay, we have Hawaii State Fed, AFL CIO, Randy Pereira, in support. Carol Phillips, Hawaii Nurses Association. Okay. In support. IATSI Local 665 in support. Any others wishing to testify, House Bill 874, House Draft 3? I have a quick question. Ms. Elmore. Yep. Thank you so much for being here.

You know, very laudable. Yeah, very commendable. What this Bill tries to do. Is there any specific department that will be enforcing this?

I think because it really is brand new and just as social media, I mean, of course social media has been around, but we really are. This would be one where we'd have to do really some research to figure out where it would fit best.

I mean, the logical—one logical tract is, okay, it goes under labor the same way that minors in theatrical employment is covered there. And they have, you know, they've got their sheet, it's easy to get to where you see the hours, etc. And that would be a logical choice. But, you know, I can also entertain—I mean, I feel like there are probably other places, too, where it would fit in.

So, I think there is some research that needs to be done as to where this would fit in best.

So, in other jurisdictions, which Department or which government agency would do the oversight?

Thanks.

My general—just from the general research I've done, it looks like labor, or even the film office. So.

Okay, thank you very much.

Thank you. Let's move on to the last Bill of the agenda.

House Bill 159, House Draft 1, related to qualified community rehabilitation programs clarifies that the civil service exemption for personal service contracts for building, custodial and grounds maintenance services with qualified community rehabilitation program shall not cost more than $850,000 in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation program utilized for the personal service.

Okay. First we have United Public Workers.

Aloha Chair again, Kamakana Kaimuloa, government affairs manager for United Public Workers. You have a written testimony in strong support of this Bill. This Bill is practically identical to the Bill that this Committee passed, which is SB 425. We think that this addresses in a significant way a growing problem we see with employer across all various jurisdictions.

And the employer has been doing that to sort of address personnel shortages. I know that bell is going to ring pretty soon, so I'll just wrap it up. So mahalo for the opportunity to testify. I'm happy to answer any questions, any questions you may have.

Thank you very much. Okay, next we have HGEA. Okay, thank you very much. Hawaiʻi State Fed, AFL-CIO, Randy Perreira also in support. Any others wishing to testify. House Bill 159, House Draft 1. We're going to recess real briefly for quorum to arrive. Okay, thank you very much. Recess.

Reconvening our 3:00 o'clock agenda for decision making.

Okay, we're gonna recess once again.

Okay. Reconvening our 3:00 o'clock agenda. It is still Monday, March 10th. Okay. So because of a lack of quorum, we're gonna be deferring decision making to Wednesday, March 12th, 3:01PM in this Room 224. Okay, thank you very much. Adjourn.