STAND. COM. REP. NO. 2681

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2343
                                        S.D. 1




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

Sir:

     Your Committees on Labor and Environment and Ways and Means,
to which was referred S.B. No. 2343 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII HEALTH SYSTEMS
     CORPORATION,"

beg leave to report as follows:

     The purpose of this measure is to exempt the Hawaii Health
Systems Corporation (HHSC) from certain civil service
requirements for five years until June 30, 2005.  The measure
also establishes parameters for collective bargaining applicable
only to the HHSC.

     Testimony in favor of this measure was received from the
HHSC, Department of Human Resources Development, Maui Memorial
Medical Center, and one individual.  Testimony in opposition to
the measure was received from the United Public Workers.
Comments on the measure were received from the HGEA-AFSCME.

     Your Committees note the Auditor's finding that the state
personnel system's process increases costs for the corporation.
This measure proposes a five-year pilot project providing the
corporation relief from the State's inflexible personnel system.
Your Committees are in agreement that this measure will help the
corporation achieve its goals of becoming a more self-sufficient,
cost-effective, quality focused, integrated health care system.

     Your Committees have amended this measure by deleting all
but the section amending the definition of "employer" or "public

 
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                                   STAND. COM. REP. NO. 2681
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employer" to include the HHSC's board of directors.  Deleted
material has been incorporated into the Senate's civil service
reform bill.

     As affirmed by the records of votes of the members of your
Committees on Labor and Environment and Ways and Means that are
attached to this report, your Committees are in accord with the
intent and purpose of S.B. No. 2343, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as S.B. No. 2343, S.D. 1, and be placed on the calendar for Third
Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and
                                   Environment and Ways and
                                   Means,



____________________________       ______________________________
CAROL FUKUNAGA, Co-Chair           BOB NAKATA, Chair



____________________________
ANDREW LEVIN, Co-Chair

 
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