STAND. COM. REP. NO. 2411

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2317
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Transportation and Intergovernmental
Affairs and Labor and Environment, to which was referred S.B.
No. 2317 entitled: 

     "A BILL FOR AN ACT RELATING TO BOARDS OF WATER SUPPLY,"

beg leave to report as follows:

     The purpose of this measure is to provide boards of water
supply in a county with a population of more than 500,000 with
the flexibility needed to initiate a pilot program to restructure
and reorganize for the purposes of efficiency and effectiveness.

     The measure also allows the boards of water supply to create
flexible job descriptions, reduce the number of job
classifications, create multi-skilled positions, and establish
appropriate salary ranges and compensation for these positions.

     Testimony in support of this measure was received from the
Maui County Department of Water Supply, the City and County of
Honolulu Board of Water Supply, Hawaii Government Employees
Association, Plumbers and Fitters Union Local 675, and 46
employees of the Board of Water Supply.  The United Public
Workers submitted testimony in opposition, and a member of the
public submitted comments.

     Your Committees find that in order to become more flexible
and efficient, a pilot program should be established in boards of
water supply in counties with a population of more than 500,000.
The pilot program should have flexibility under the civil service

 
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law, and existing civil service rules and procedures, governing
the classification of positions.

     Your Committees further find that if the pilot program is
found to be successful, then it can be applied to other agencies,
and ultimately throughout the civil service system.  Your
Committees also find that this pilot program will require the
board of water supply to consult with the appropriate exclusive
representative of a bargaining unit on changes in job
descriptions and classifications.

     Your Committees are aware of the civil service reform bills
now in the legislature, and that they may affect this bill.  Your
Committees believe that any conflict between those bills and this
bill can be eliminated in conference.

     Your Committees have amended this measure by:

     (1)  Amending the purpose section by eliminating the
          comparison to private utilities and improving the focus
          of the section;

     (2)  Narrowing the pilot program to classification and
          reclassification;

     (3)  Deleting the language allowing the board of water
          supply to perform the powers, functions, or duties
          itself or contract with agencies of the county or
          State;

     (4)  Adding language exempting the pilot program from the
          conference of personnel directors and from the adoption
          of a compensation plan by the conference;

     (5)  Requiring salary ranges, schedules, and pricing to be
          established through negotiations with the exclusive
          bargaining representative;

     (6)  Deleting paragraphs regarding lump sum payments for
          employees who cannot be retained and the provisions
          allowing the boards to do any and all things necessary
          to change human resources procedures subject to the
          merit principle;

     (7)  Adding a new subsection allowing the board of water
          supply to enter into memorandum of agreements with
          exclusive bargaining representatives on matters subject
          to negotiations that are unique to the board, and shall
          not require the approval of any employer jurisdiction;

 
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     (8)  Clarifying that county civil service provisions in
          conflict with this pilot program are superseded by the
          program; and

     (9)  Changing the repeal date to June 30, 2005.

     As affirmed by the records of votes of the members of your
Committees on Transportation and Intergovernmental Affairs and
Labor and Environment that are attached to this report, your
Committees are in accord with the intent and purpose of S.B.
No. 2317, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as S.B. No. 2317, S.D. 1, and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Transportation
                                   and Intergovernmental Affairs
                                   and Labor and Environment,



_____________________________      ______________________________
BOB NAKATA, Chair                  CAL KAWAMOTO, Chair

 
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