Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 142
                                     H.D. 1

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


     Your Committee on Finance, to which was referred H.B. No.
142, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to create a representative task
force to conduct a comprehensive review of the scope,
implementation, efficiency, and effectiveness of Chapters 76 and
77, Hawaii Revised Statutes, dealing with state civil service and
compensation laws.

     The Judiciary and the Hawaii Government Employees
Association testified in support of this bill.  The Department of
Human Resources Development testified in support of the intent of
this bill.  The Legislative Reference Bureau and the United
Public Workers commented on this bill.

     Your Committee finds that this bill will allow for a
comprehensive review of the state's civil service and
compensation laws within one year.  If the task force fulfills
its mandated obligations, then the Legislature should have a
clear idea of what needs to be changed to modernize the State's
civil service system.  Your Committee acknowledges that there is
merit in the Governor's proposal to repeal civil service outright
by June 30, 2000.  However, your Committee believes that it is in
the public's best interest to conduct a comprehensive review in
the spirit of cooperation and consensus-building.  Additionally,
if after the one-year task force review, the consensus is that
civil service should be repealed, then there is still time to
effect the Governor's proposal.

                                 STAND. COM. REP. NO. 1102
                                 Page 2


     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
142, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair