FLOOR AMENDMENT NO. 5                    DATE: March 9, 1999     

TO:  S.B. No. 1046, S.D. 2

     SECTION 1.  Senate Bill No. 1046, S.D. 2, is amended by
deleting its contents in their entirety and replacing them with
the following language:

     "SECTION 1.  For several decades, the civil service system
has admirably met its mandate to support Hawaii state
government's mission to serve the people of Hawaii.  Within the
past few years, however, with the advancement of digital
technology, public needs have changed at a constant and ever-
increasing rate.  Our current civil service system, which was
created at a time when digital technology was at best, mostly
theory, has outlived its usefulness.  Therefore, for state
government to continue to meet the public's needs, the civil
service system will have to be modernized to provide flexible,
timely, responsive, and people centered personnel support.
     To create an opportunity that encourages all stakeholders to
work collaboratively to co-create this modernized civil service,
it is proposed that a "fresh-start" provision be established for
civil service laws.  Such a "fresh-start" concept would not only
serve to "clear-the-deck" but would also capture the public's
attention and thus provide the drive to seriously engage in the
process of co-creating a new statutory framework by all

     SECTION 2.  The director of human resources development is
charged with the responsibility to establish partnerships with
all stakeholders, labor and management included, and begin to
design and effectuate a process to modernize the civil service
     The director of the department of human resources
development shall identify and work collaboratively with the
various stakeholders governed by the provisions of chapters 76,
77, 78, 79, 80, 81, and 82, Hawaii Revised Statutes, in order to
draft replacement legislation if deemed necessary.  The
stakeholders shall include, but not be limited to, the exclusive
representatives whose members are covered by these chapters, the
conference of personnel directors, the personnel director of the
judiciary, and members of the house of representatives and the
state senate as designated by the speaker of the house of
representatives and the president of the senate, respectively.
     It is envisioned that discussions may include but not be
limited to, such other issues as negotiability of health
benefits, creation of a new classification system, total
compensation package which includes pay and benefits, recruitment

FLOOR AMENDMENT NO.__________________                      Page 2

above the first step of the pay range, autonomy of personnel
administration systems, and the civil service commission and
public employees compensation appeals board.
     The director, with the consensus of the stakeholders shall
establish a process for developing as broad-based a series of
recommendations as can be agreed upon by the stakeholders in the
     The director shall submit monthly progress reports to the
legislature.  The director and the stakeholders shall submit
draft model civil service legislation to a joint house and senate
labor committee meeting on November 15, 1999.  The stakeholders
shall continue to meet after the joint meeting and make any
revisions to the proposed legislation based on feedback from the
joint committee.  The director, with the stakeholders concurring,
shall present revised legislation for the modernization of civil
service legislation for consideration by the legislature by
January 15, 2000.

     SECTION 3.  Notwithstanding any other law to the contrary,
the legislature shall adopt legislation to be effective June 29,
2000, to define the employment of persons in the civil service
system.  Such legislation shall be governed by the merit

     SECTION 4.  Effective June 30, 2000, chapters 76, 77, 78,
79, 80, 81, and 82, Hawaii Revised Statutes, are repealed;
provided that the legislature has adopted replacement legislation
for them in accordance with section 3 of this Act.

     SECTION 5.  This Act shall take effect upon its approval."

Offered by:_____________________       (    ) Carried

                                       (    ) Failed to Carry

                                       (    ) Withdrawn