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 Labor and Public Employment, to which was
referred H.B. No. 142 entitled: 


begs leave to report as follows:

     The purpose of this measure is to create a representative
task force to:

     (1)  Conduct a comprehensive review of the scope,
          implementation, efficiency, and effectiveness of Title
          7, Hawaii Revised Statutes (HRS);

     (2)  Seek consensus on necessary or appropriate changes to
          Title 7; and

     (3)  Report back to the Legislature prior to the 2000
          Regular Session.

     The Building Industry of Hawaii and the Construction
Industry Legislative Organization supported this measure.  The
Department of Human Resources Development and the Office of
Collective Bargaining testified in support of the intent of this
measure, but preferred House Bill No. 1133.  The Legislative
Reference Bureau, the Department of Civil Service of the County
of Hawaii, and a member of the public commented on this measure.
The Hawaii Government Employees Association, Hawaii State
Teachers Association, and the United Public Workers opposed this

                                 STAND. COM. REP. NO. 711
                                 Page 2


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

     (1)  Limiting the scope of the task force to examine only
          chapters 76 and 77, HRS, which deal with state civil
          service and compensation laws;

     (2)  Changing the composition of the task force to 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;

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

          (e)  One representative from the Council of Personnel


     (3)  Making technical, nonsubstantive amendments for
          purposes of style, clarity, and consistency.

     Your Committee finds that the State's continuing financial
crisis has created substantial uncertainty for state and county
employees and managers, as well as taxpayers, resulting in
layoffs of many state and county employees while vacant positions
continue to go unfilled.  As a result, many proposals affecting
benefits, employment conditions, and other matters regarding
state and county employees have come before the Legislature.  

     Your Committee further finds that most of chapters 76 and
77, HRS, dealing with the State's civil service and compensation
laws are now several decades old.  The State's financial
condition has both required and facilitated a refocus on
principles of productivity, efficiency, and morale encouragement
in the state and county workforce--in other words, a "fresh
start."  Your Committee believes that this measure will bring
about a "fresh start" in the way state government works.

     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 H.B. No. 142, as amended herein, and recommends that it pass

                                 STAND. COM. REP. NO. 711
                                 Page 3

Second Reading in the form attached hereto as H.B. No. 142, 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

                                   TERRY NUI YOSHINAGA, Chair