REPORT TITLE:
OHA Retirement


DESCRIPTION:
Allows OHA trustees to participate in and receive same benefits
from ERS as other elected officers.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           468
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE TRUSTEES OF THE OFFICE OF HAWAIIAN AFFAIRS.



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

 1      SECTION 1.  The legislature finds that while trustees of the
 
 2 office of Hawaiian affairs are elective officers, they do not
 
 3 receive the same treatment for retirement purposes as other
 
 4 elected officers.  The purpose of this Act is to allow the
 
 5 trustees of the office of Hawaiian affairs to participate in and
 
 6 receive the same benefits from the retirement benefits programs
 
 7 in which other elected salaried officials of the State
 
 8 participate.
 
 9      SECTION 2.  Chapter 88, Hawaii Revised Statutes, is amended
 
10 by adding a new section to be appropriately designated and to
 
11 read as follows:
 
12      "88-     Service while a member of the board of trustees of
 
13 the office of Hawaiian affairs.  Notwithstanding any provisions
 
14 of section 10-9 that may previously have precluded a member of
 
15 the board of trustees of the office of Hawaiian affairs from
 
16 participating as a member of the employees' retirement system,
 
17 any member of the board of trustees of the office of Hawaiian
 
18 affairs electing to become a member of the system, or any former
 
19 member of the board of trustees of the office of Hawaiian affairs
 

 
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 1 who is otherwise a member of the system, shall be entitled to
 
 2 claim full membership service credit as a class A member of the
 
 3 employees' retirement system for service as a trustee during the
 
 4 period July 1, 1993 through June 30, 1999, provided that the
 
 5 trustee or member who was formerly a trustee during that period
 
 6 requests credit for that service as membership service and pays
 
 7 for that membership service in accordance with section 88-59."
 
 8      SECTION 3.  Section 10-9, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "10-9 Salaries; benefit; expenses.  Members of the board:
 
11      (1)  Shall receive an annual salary which shall be paid:
 
12           (A)  Exclusively from revenue under section 10-13.5;
 
13                and
 
14           (B)  In equal amounts, beginning with the first pay
 
15                period for state employees in November of the year
 
16                the member of the board is elected.
 
17           Effective July 1, 1993, and until the salary commission
 
18           makes recommendations for salary, the salary of the
 
19           chairperson of the board shall be $37,000 a year and
 
20           the salary of other members of the board shall be
 
21           $32,000 a year.  Any provision of law to the contrary
 
22           notwithstanding, all members of the board shall be
 
23           included in any benefit program generally applicable to
 

 
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 1           officers and employees of the State [except for benefit
 
 2           programs relating to retirements];
 
 3      (2)  Shall be allowed transportation fares between islands
 
 4           and abroad;
 
 5      (3)  Shall be allowed personal expenses at the rates
 
 6           specified by section 78-15, while attending board
 
 7           meetings or while on official business as authorized by
 
 8           the chairperson, when those board meetings or official
 
 9           business shall require a member to leave the island
 
10           upon which the member resides; and
 
11      (4)  Shall be allowed a protocol allowance to cover expenses
 
12           incurred in the course of a member's duties and
 
13           responsibilities."
 
14      SECTION 4.  Section 87-1, Hawaii Revised Statutes, is
 
15 amended by amending the definition of "employee" to read as
 
16 follows:
 
17      "(5) "Employee" means an employee or officer of the state or
 
18           county government [or the legislature],
 
19           (A)  Including:
 
20                (i)  An elective officer or a person who has
 
21                     served as a member of the legislature for at
 
22                     least ten years;
 
23               (ii)  A per diem employee;
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1              (iii)  An officer or employee under an authorized
 
 2                     leave of absence;
 
 3               (iv)  An employee of the Hawaii national guard
 
 4                     although paid from federal funds;
 
 5                (v)  A retired member of the employees' retirement
 
 6                     system, the county pension system, or the
 
 7                     police, firefighters, or bandsmen pension
 
 8                     system of the State or county[;], including a
 
 9                     retired member of the system who served as a
 
10                     member of the board of trustees of the office
 
11                     of Hawaiian affairs;
 
12               (vi)  A salaried and full-time member of a board,
 
13                     commission, or agency appointed by the
 
14                     governor or the mayor of a county; and
 
15              (vii)  A person employed by contract for a period
 
16                     not exceeding one year, where the director of
 
17                     human resources development, personnel
 
18                     services, or civil service has certified that
 
19                     the service is essential or needed in the
 
20                     public interest and that, because of
 
21                     circumstances surrounding its fulfillment,
 
22                     personnel to perform the service cannot be
 
23                     obtained through normal civil service
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1                     recruitment procedures,
 
 2           (B)  But excluding:
 
 3                (i)  A designated beneficiary of a retired member
 
 4                     of the employees' retirement system, the
 
 5                     county pension system, or the police,
 
 6                     firefighters, or bandsmen pension system of
 
 7                     the State or county[;], including a retired
 
 8                     member who served as a member of the board of
 
 9                     trustees of the office of Hawaiian affairs;
 
10               (ii)  Except as allowed under [[]paragraph[]]
 
11                     (5)(A)(vii), a person employed temporarily on
 
12                     a fee or contract basis; and
 
13              (iii)  A person employed for less than three months
 
14                     and whose employment is less than one-half of
 
15                     a full-time equivalent position."
 
16      SECTION 5.  Section 87-5, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "87-5 Reimbursement for state contributions.  (a)  All
 
19 state and county agencies having control of special funds shall
 
20 reimburse the State for contributions made by the State pursuant
 
21 to section 87-4 on account of the employees in the agencies whose
 
22 compensation is paid in whole or part from the special funds.
 
23 All state and county agencies receiving federal funds, which may
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1 be expended for the purpose of absorbing the contributions
 
 2 payable by the State to the fund, shall set aside a portion of
 
 3 the federal funds sufficient to reimburse the State for
 
 4 contributions made by the State pursuant to section 87-4 on
 
 5 account of the employees in the agencies whose compensation is
 
 6 paid in whole or part from federal funds.
 
 7      (b)  The office of Hawaiian affairs shall reimburse the
 
 8 State for contributions made by the State pursuant to section
 
 9 87-4.5, 87-4.6, or 87-6 on account of a former member of the
 
10 board of trustees of the office of Hawaiian affairs who is a
 
11 retired member of the employees' retirement system.  All
 
12 reimbursements shall be paid exclusively from revenue under
 
13 section 13.5."
 
14      SECTION 6.  Section 88-21, Hawaii Revised Statutes, is
 
15 amended by amending the definitions of "elective officer or
 
16 elected official" and "employee" to read as follows:
 
17      ""Elective officer" or "elective official":  any person
 
18 elected to a public office or appointed to fill a vacancy of an
 
19 elective office, except as a delegate to a constitutional
 
20 convention[,] or member of the board of education [or trustee of
 
21 the office of Hawaiian affairs], in accordance with an election
 
22 duly held in the State or counties under chapter 11; provided
 
23 that the person receives compensation, pay, or salary for such
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1 office.
 
 2      "Employee":  any employee or officer of the State or any
 
 3 county, including inspectors, principals, teachers and special
 
 4 teachers, regularly employed in the public schools, cafeteria
 
 5 managers and cafeteria workers, apprentices and on-the-job
 
 6 trainees whether or not supported in whole or in part by any
 
 7 federal grants, members of the legislature and other elective
 
 8 officers, including the trustees of the office of Hawaiian
 
 9 affairs, legislative employees who are employed on a full-time
 
10 basis during and between sessions, probationary and provisional
 
11 employees, any employee of the educational nonprofit public
 
12 corporation as provided in section 88-49.7, per diem employees
 
13 and others who are made eligible by reason of their employment to
 
14 membership in the system by or pursuant to any other provision of
 
15 law, but excluding:
 
16      (1)  Per diem employees who elect to withdraw or not to
 
17           become members as provided in section 88-42;
 
18      (2)  Members of the legislature who do not elect to be
 
19           members as provided in section 88-42;
 
20      (3)  Persons excluded by rules of the board pursuant to
 
21           section 88-43.
 
22      An individual is an employee during the period of a leave of
 
23 absence if the individual is in service, as defined in this part,
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1 during the period of the leave of absence and the board shall
 
 2 determine who are employees within the meaning of this part."
 
 3      SECTION 7.  Section 88-42, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "88-42  Membership generally.  (a)  Except as otherwise
 
 6 provided in this part, all employees of the Territory or any
 
 7 county on July 1, 1945, shall be members of the system on such
 
 8 date, and all persons who thereafter enter or reenter the service
 
 9 of the State or any county shall become members at the time of
 
10 their entry or reentry.
 
11      (b)  Per diem workers shall become eligible for membership
 
12 on January 1, 1952, and all persons who are employed as per diem
 
13 workers after December 31, 1951, shall become members of the
 
14 system.  Any person who was a per diem worker before January 1,
 
15 1952, shall not, so long as the person is employed as a per diem
 
16 worker, be required to become a member or to remain a member if
 
17 the person has elected before October 2, 1953, to withdraw as a
 
18 member.
 
19      (c)  Members of the legislature shall become eligible for
 
20 membership on July 1, 1951.  Any member of the legislature in
 
21 service on July 1, 1951, or thereafter entering or reentering the
 
22 legislature, may become a member upon the legislator's own
 
23 election.
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1      (d)  Members of the board of trustees of the office of
 
 2 Hawaiian affairs shall become eligible for membership on July 1,
 
 3 1999.  Any member of the board of trustees in service on July 1,
 
 4 1999 or thereafter elected or reelected to the board of trustees
 
 5 of the office of Hawaiian affairs, may become a member upon the
 
 6 trustee's own election."
 
 7      SECTION 8.  Section 88-47, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (a) to read as follows:
 
 9      "(a)  There shall be three classes of members in the system
 
10 to be known as class A, class B, and class C, defined as follows:
 
11      (1)  Class A shall consist of members covered by section
 
12           88-74(3)[,] and (4), those members whose salaries are
 
13           set forth in sections 26-52 and 26-53, and their county
 
14           counterparts, managing directors or administrative
 
15           assistant to the mayor, and other department heads,
 
16           including agency heads appointed by the mayor, first
 
17           deputies appointed by the county attorney and
 
18           prosecuting attorney, the county clerk and deputy
 
19           county clerk of each county, the administrative
 
20           director of the courts, the deputy administrative
 
21           director of the courts, the executive director of the
 
22           labor and industrial relations appeals board, the
 
23           executive director of the Hawaii labor relations board,
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1           investigators of the department of the attorney
 
 2           general, narcotics enforcement investigators, water
 
 3           safety officers not making the election under section
 
 4           88-271, public safety investigations staff
 
 5           investigators, and those members in service prior to
 
 6           July 1, 1984, including those who are on approved leave
 
 7           of absence, who are covered by Title II of the Social
 
 8           Security Act on account of service creditable under
 
 9           this part.  This class shall consist of:
 
10           (A)  All employees who enter membership after June 30,
 
11                1957, except employees in positions to which
 
12                coverage under Title II of the Social Security Act
 
13                is not extended;
 
14           (B)  All employees who were members on July 1, 1957,
 
15                who elected to be covered by the Social Security
 
16                Act; and
 
17           (C)  All former class A retirants who return to
 
18                employment after June 30, 1984, requiring the
 
19                retirant's active membership;
 
20      (2)  Class B shall consist of all members who are not class
 
21           A or class C members; and
 
22      (3)  Except for members described in section 88-47(a)(1),
 
23           class C shall consist of all employees in positions
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1           covered by Title II of the Social Security Act who:
 
 2           (A)  First enter service after June 30, 1984;
 
 3           (B)  Reenter service after June 30, 1984, without
 
 4                vested benefit status as provided in section
 
 5                88-96(b);
 
 6           (C)  Make the election to become a class C member as
 
 7                provided in part VII; or
 
 8           (D)  Are former class C retirants who return to service
 
 9                requiring the retirant's active membership."
 
10      SECTION 9.  Section 88-125, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "88-125  Contributions by certain state agencies.  (a)
 
13 Each of the departments and agencies hereinafter described and
 
14 the office of Hawaiian affairs, shall reimburse the State for the
 
15 respective amounts payable by the State to cover the liability of
 
16 the State to the various funds of the system on account of the
 
17 employees in such departments and agencies[.] and the trustees of
 
18 the office of Hawaiian affairs.  This provision shall apply to
 
19 any department or agency of the State which is authorized by law
 
20 to fix, regulate and collect rents, rates, fees or charges of any
 
21 nature.  The provisions herein shall not apply as to rental units
 
22 receiving federal subsidies until approval has been obtained from
 
23 the appropriate federal agency.
 

 
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 1      (b)  Whenever any department or agency of the State receives
 
 2 federal-aid funds which may be expended for the purpose of
 
 3 covering the liability of the State to the various funds of the
 
 4 system, the department or agency shall set aside a portion of
 
 5 these funds sufficient to cover the amount of the State's
 
 6 liability to the various funds of the system on account of the
 
 7 employees in the department or agency whose compensation is paid
 
 8 in whole or part from federal funds.
 
 9      (c)  The amount payable by each department or agency of the
 
10 State, or the office of Hawaiian affairs, covered by this section
 
11 shall be determined at least quarterly by the department of
 
12 budget and finance on the basis of the payroll of the employees
 
13 of the department or agency, or trustees of the office of
 
14 Hawaiian affairs, who are members of the system in the same
 
15 manner the allocation of employer contributions is determined in
 
16 section 88-123.  The comptroller of the State, the office of
 
17 Hawaiian affairs, or any department or agency having control of
 
18 its own funds shall, upon information furnished by the department
 
19 of budget and finance, issue a warrant for the proper amount to
 
20 the system, charging the same to the appropriate fund.  The
 
21 system shall place all such sums to the credit of the State as
 
22 part payment of the State's contributions to the various funds of
 
23 the system.  All reimbursements made by the office of Hawaiian
 

 
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                                     S.B. NO.           468
                                                        
                                                        


 1 affairs shall be paid exclusively from revenue under section
 
 2 10-13.5."
 
 3      SECTION 10.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 11.  This Act shall take effect on July 1, 1999.
 
 6 
 
 7                              INTRODUCED BY:______________________