STAND. COM. REP. NO. 210

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 803
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 803 entitled: 

     "A BILL FOR AN ACT RELATING TO WORKFORCE RESTRUCTURING,"

begs leave to report as follows:
     
     The purpose of this measure is to reduce the size of
Hawaii's government by initiating a phased strategic workforce
reduction plan, developing voluntary separation incentive
programs, and providing for the authority and flexibility to
restructure and streamline government programs.

     Your Committee received testimony in support of this measure
from the Department of Human Resources Development.  The Hawaii
State Teachers Association, HGEA-AFSCME Local 152, AFL-CIO, the
Public Employees Management Association of Hawaii, and the United
Public Workers testified in opposition.

     Your Committee finds that the experience of the federal
government in workforce reduction has demonstrated the value of
voluntary incentive separation programs.  Modeled after the
successful federal program, this measure would establish a
similar program and framework for the State.

     Your Committee believes it is in the best interest of the
State to undertake a thorough review of its programs, while
providing options for employees whose services might no longer be
required under a restructuring of services.


 
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                                   STAND. COM. REP. NO. 210
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     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 803 and recommends that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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