Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 24, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to enable a public agency to conduct experimental modernization projects to make the agency's operation more efficient and productive.

Specifically, the bill authorizes human resource programs in state and county agencies, effective July 1, 2001, to institute experimental projects to determine whether specific personnel changes are desirable. Although Act 253, Session Laws of Hawaii 2000, the Civil Service Reform Act, authorizes public agencies to conduct experimental modernization projects, agencies cannot initiate these projects until July 1, 2002, the effective date of Act 253.

The Board of Water Supply of the City and County of Honolulu and the Hawaii Government Employees Association testified in support of this bill.

Your Committee finds that this bill will allow state and county public agencies to improve their operation and customer service by implementing pilot projects as early as July 1, 2001. Although Act 253 clearly enables and supports improvements in human resources programs, the effective date of Act 253, July 1, 2002, prevents the timely initiation of any experimental modernization projects that may be ready earlier. This measure will authorize such projects to begin on July 1, 2001, eliminating an unnecessary waiting period for agencies ready to conduct pilot projects.

Because prior committees expressed concerns about the implementation of experimental modernization projects by the Board of Water Supply, your Committee requests that the Board of Water Supply submit a status report on employee participation in its pilot project to the Committee no later than twenty days before the convening of the Regular Session of 2002.

Your Committee has amended this bill requiring sections 2 and 3 of this bill to be repealed on June 30, 2002. This will avoid any conflict with Act 253, Session Laws of Hawaii 2000, which takes effect on July 1, 2002. Technical nonsubstantive changes also have been made for clarity and style.

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. 24, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 24, S.D. 2.