Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Labor and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 363 entitled:

beg leave to report as follows:

The purpose of this measure is to designate any county Board of Water Supply serving a population of 500,000 or more persons as a "jurisdiction" under the civil service laws of the State, with the ability to establish an experimental modernization project and determine whether specific changes in its human resources program are desirable.

Testimony in support of this measure was submitted by the Board of Water Supply for the City and County of Honolulu, the United Public Workers, and the Hawaii Government Employees Association.

Your Committees find that over the past few years, efforts have been made to transform the Honolulu Board of Water Supply into a competitive water utility service provider. These changes have been part of a program designed around the involvement of both employer and unions. Your Committees further find that these changes have resulted in vast improvements, including cost savings due to a reduced work force achieved through attrition.

However, your Committees determine that it is necessary to provide qualifying Boards of Water Supply with greater flexibility to evaluate and pilot new human resources systems in order to achieve and sustain maximum performance levels.

As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 363 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.