STAND. COM. REP. NO. 1377_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1042
                                     S.D. 1
                                     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 S.B. No. 1042, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide for additional
flexibility in the hiring of new government employees by allowing
vacancies to be announced at a range of salary rates, rather than
the first step only, for professional and scientific positions
and positions in the excluded managerial compensation plan.

     The Department of Human Resources Development, the
Department of the Judiciary, and the Public Employees Management
Association of Hawaii testified in support of this measure.

     Your Committee finds that under current law all new hires
must be appointed at the minimum step of the salary range,
regardless of the quality and quantity of experience of
candidates for government positions.  As a result, both state and
county governments often find themselves at a competitive
disadvantage in recruiting experienced professionals.

     Your Committee further finds that this measure will provide
the State with an important tool for improving its ability to
attract and hire experienced and qualified professional,
scientific, and managerial employees to the State civil service.

                                 STAND. COM. REP. NO. 1377_______
                                 Page 2


     Your Committee has amended this bill by:

     (1)  Changing the effective date to June 1, 2000; and

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

     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. 1042, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1042, S.D. 1, H.D. 1, and be referred to the Committee on

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

                                   TERRY NUI YOSHINAGA, Chair