Honolulu, Hawaii
                                                     , 1999

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

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


     Your Committee on Labor and Environment, to which was
referred S.B. No. 1046 entitled: 


begs leave to report as follows:
     The purpose of this measure is to repeal Chapters 76, 77,
78, 79, 80, 81, and 82, Hawaii Revised Statutes, in order to
create a new statutory framework for a new civil service system.

     Your Committee received testimony in support of this measure
from the Department of Human Resources Development, the
Department of Defense, the Department of Land and Natural
Resources, the Judiciary, and the County of Maui Department of
Civil Service.  The HGEA-AFSCME Local 152, AFL-CIO, the State of
Hawaii Organization of Police Officers, and the United Public
Workers testified in opposition.  One individual submitted
comments on this measure.

     Your Committee finds that if government is to transform the
outdated civil service system in order to meet the needs of a
modern, flexible economy, the current system must be replaced
with new laws.  This measure would "clear the deck" and create an
opportunity to encourage all stakeholders to work together on a
collaborative and timely basis to develop a replacement law.

     Your Committee is cognizant of both the opportunities and
the perils inherent in the proposed legislation.  But if

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meaningful change is to occur, the process, however
controversial, must begin.

     Your Committee has amended this measure to:

     (1)  Delete the majority of the findings and purpose section
          and revise this section to focus on the need for a more
          flexible and responsive civil service system, the
          creation of a "fresh-start" concept, and to emphasize
          the partnership aspect of designing a new system;

     (2)  Require the Director of Human Resources Development,
          with all stakeholders agreeing, to engage a team of
          mediators/facilitators to submit monthly progress
          reports to the Legislature;

     (3)  Require the director and the stakeholders to submit
          model legislation to a joint House of Representatives
          and Senate Labor Committee meeting on November 15,
          1999, with meetings for possible revisions to continue
          after this joint committee meeting;

     (4)  Require the director to present a revised and final
          civil service bill for consideration by the Legislature
          by January 15, 2000;

     (5)  Require the Legislature to adopt legislation to be
          effective June 30, 2000, to define the employment of
          persons in the civil service system governed by the
          merit principle;

     (6)  Make the Act effective upon approval; and

     (7)  Renumber the sections to conform to standard drafting

     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. 1046, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1046,
S.D. 1, and be referred to the Committee on Ways and Means.

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

                                   BOB NAKATA, Chair

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