Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 1786, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow employees in positions that are exempted from civil service, who have satisfactorily performed work for five or more consecutive years, to be eligible to apply for intra-departmental and inter-departmental transfers and promotional examinations for which they are otherwise qualified.

This measure also:

Testimony in support of this measure was submitted by the Department of Education, the Department of Human Resources Development, and the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Testimony in opposition to this measure was submitted by the Department of Personnel Services for the County of Maui.

Your Committee finds that, not unlike their civil service counterparts, many employees in positions that are exempted from civil service have spent their careers gaining invaluable knowledge, experience, and skills necessary to efficiently and effectively perform their duties. Your Committee further finds that, although they enjoy other benefits, employees in exempt positions do not enjoy many of the benefits afforded civil service employees, despite their accumulated level of knowledge and service. Therefore, your Committee determines that some parity should be provided to the employees in exempt positions by providing them with the opportunity to apply for departmental transfers and promotional examinations, while also balancing the interests and rights of civil service employees.

Additionally, in order to ensure that the rights and privileges of civil service are provided whenever possible, your Committee believes that it is also prudent to monitor and attempt to limit the number of exempt positions within the State, with the Department of Human Resources Development being the appropriate entity to control and report such figures to the Legislature. Although this measure does not contain a specific maximum percentage amount for exempt positions within the State, your Committee also believes that this measure should continue to advance in the Legislature as further discussion on the issue will eventually produce a percentage amount.

Accordingly, your Committee has amended this measure by increasing the number of years for which an employee in an exempt position is required to have worked from five years to eight years in order to be eligible to apply for intra-departmental and inter-departmental transfers and promotional examinations for which they are otherwise qualified.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1786, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1786, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.