Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 803
                                        S.D. 1

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 803 entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide for a planned
reduction in the size of state government and a framework for the
orderly restructuring of government programs.

     Specifically, this measure requires the State administration
to draft a strategic workforce reduction and reorganization plan
for legislative approval prior to restructuring programs,
redeploying employees, and offering voluntary separation
incentives.  Furthermore, this measure gives permanent full-time
employees whose positions are to be eliminated the right to
receive transitional severance benefits in lieu of other rights
to which the employee may be entitled.  If the employee is a
vested member of the Employees' Retirement System, this measure
also gives the employee special retirement benefits in lieu of
other entitlements.

     Your Committee finds that this bill is inspired by the
successful Federal Workforce Restructuring Act of 1994, and
reflects community concerns that the state government in the
twenty-first century must be responsive, efficient, and flexible
to address the everchanging societal needs.  State government

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                                   STAND. COM. REP. NO. 806
                                   Page 2

must accordingly reinvent itself and the way that it operates in
order to be cost-efficient and capable of attaining measurable

     Your Committee has amended this measure making some
stylistic changes.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
803, as amended herein, and recommends that it pass Third
Reading, in the form attached hereto as S.B. No. 803, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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