Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Labor, to which was referred H.B. No. 2478 entitled:

beg leave to report as follows:

The purpose of this measure is to exempt and exclude employees of the Hawaii National Guard Youth Challenge Academy from civil service and collective bargaining.

Testimony in support of this measure was submitted by the Department of Defense.

Your Committees find that the master cooperative youth agreement between the State and federal governments, which governs the conduct of the youth challenge academy, identifies the number of positions the program can staff and the pay ceiling for each position. These ceilings correspond to the federal pay scales. This bill will give the program the flexibility to develop a pay table that complies with the agreement requirements and will ensure pay equity among all employees.

Your Committees further find that this measure adds a new exemption category for youth challenge academy employees. Since its inception, the employees of the youth challenge academy have been exempt because the program was considered a pilot program. However, Congress established this program as permanent, thus our statutes need to be accordingly adjusted.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2478, and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.