STAND. COM. REP. NO. 1411_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1046
                                     S.D. 3
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1046, S.D. 3, entitled: 

     "A BILL FOR AN ACT RELATING TO THE CIVIL SERVICE SYSTEM FOR
     PUBLIC OFFICERS AND EMPLOYEES,"

begs leave to report as follows:

     The purpose of this bill is to modernize the State's civil
service by:

     (1)  Requiring the Director of Human Resources Development
          (Director) to identify and work collaboratively with
          the various stakeholders governed by the provisions of
          chapters 76 to 82, Hawaii Revised Statutes (HRS), to:

          (A)  Discuss chapters 76 to 82, HRS; and

          (B)  Draft replacement legislation, if deemed
               necessary; and

     (2)  Requiring the Director to submit monthly progress
          reports to the Legislature;

     (3)  Requiring the Director and the stakeholders to submit:

          (A)  Draft model civil service legislation to a joint
               House and Senate Labor Committee meeting on
               November 15, 1999; and

 
 
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          (B)  Finalized civil service legislation by January 15,
               2000;

     and

     (4)  Repealing chapters 76 to 82, HRS, provided that the
          Legislature has adopted replacement legislation.

     The Judiciary testified in support of this bill.  The United
Public Workers testified in support of the intent of this bill.
The Hawaii Government Employees Association testified in support
of this bill with one concern.  The State of Hawaii Organization
of Police Officers testified in opposition to this bill.  The
Department of Human Resources Development submitted comments on
this bill.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Requiring the Director to establish a task force and
          work collaboratively with the taskforce to modernize
          current civil service laws;

     (2)  Specifying that the task force include:

          (A)  The Chairperson of the Senate Committee on Labor
               and Environment;

          (B)  The Chairperson of the House Committee on Labor
               and Public Employment;

          (C)  The Director of Human Resources Development;

          (D)  Seven members to be designated by the Senate
               President and the Speaker of the House of
               Representatives, as follows:

               (i)  One representative from each of the six
                    public employee unions; and

               (ii) One representative from the Council of
                    Personnel Directors;

               and

          (E)  Other interested individuals with relevant
               expertise to be designated by the Director of
               Human Resources Development;


 
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     (3)  Specifying the issues that the Director and the
          stakeholders should discuss and examine;

     (4)  Deleting the requirement for the Director to present
          revised civil service legislation to the Legislature by
          January 15, 2000; and

     (5)  Allowing the Director to study beyond the specific
          chapters of 76 to 82, HRS.

     Your Committee finds that this bill creates an opportunity
to encourage all stakeholders to work collaboratively to co-
create a modernized civil service.  The "fresh-start" concept
integrated into this bill will not only serve to "clear-the-deck"
but also captures the public's attention and thus provides the
drive to seriously engage in the process of co-creating a new
statutory framework by all stakeholders.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1046, S.D. 3, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1046, S.D. 3, H.D. 1, and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair