STAND. COM. REP. NO. 1144-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 3182

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3182 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE OF HAWAII,"

begs leave to report as follows:

The purpose of this bill is to make a technical amendment to the provisions relating to the deposit of state funds into the state treasury.

For purposes of the public hearing, your Committee circulated a proposed H.D. 1 version that deletes the provisions of the bill and inserts new language relating to the filling of vacant positions in the Executive and Judicial Branches. The proposed H.D. 1 version:

(1) Authorizes department heads to refill up to 30 percent of vacant positions;

(2) Requires that:

(A) Thirty percent of vacant positions shall be held vacant in fiscal year 2004-2005 and assigned to a statewide personnel pool, and after June 30, 2005, the Governor may propose to transfer 50 percent of these positions between executive departments to fill essential positions; and

(B) The same shall occur in fiscal year 2005-2006 and after June 30, 2006;

and

(3) Requires that 40 percent of the vacant positions be eliminated.

The proposed H.D. 1 version exempts the following agencies from the above requirements: the Department of Education; University of Hawaii; Hawaii Health Systems Corporation; Department of Commerce and Consumer Affairs; correctional programs of the Department of Public Safety (DPS); and the developmental disabilities, adult mental health inpatient, adult mental health outpatient, and child and adolescent mental health programs of the Department of Health (DOH).

The proposed H.D. 1 version also addresses vacant positions in the Judiciary by:

(1) Authorizing the Chief Justice to refill 30 percent of vacant positions;

(2) Requiring that 30 percent of vacant positions remain unfilled during fiscal year 2004-2005 and fiscal year 2005-2006; and

(3) Requiring that 40 percent of the vacant positions be eliminated.

Government Efficiency Teams, Inc., testified in support of the proposed H.D. 1. The Judiciary, Department of Budget and Finance, Department of Human Resources Development, DOH, Department of Agriculture, Housing and Community Development Corporation of Hawaii, Department of Human Services, DPS, and the Natural Energy Laboratory of Hawaii Authority opposed the proposed measure. The Hawaii Tourism Authority offered comments.

Upon further consideration, your Committee has replaced the provisions of this bill with the proposed H.D. 1 version. Your Committee has further amended this bill by:

(1) Clarifying that the purpose of this measure is to reduce the size of government while allowing flexibility in retaining positions in critical or priority areas of each department;

(2) Deleting the requirements pertaining to all vacant positions within the Judiciary, thereby exempting the Judiciary from the provisions of this bill;

(3) Limiting the scope of this bill to apply only to vacant positions funded by the general fund;

(4) Clarifying that the vacant positions that may be refilled by a department head pertain to vacancies that occur after June 30, 2004, and before July 1, 2006;

(5) Clarifying that the vacant positions that the Governor may propose to transfer from the statewide personnel pool:

(A) After June 30, 2005, pertain to vacancies that occur after June 30, 2004, and before July 1, 2005; and

(B) After June 30, 2006, pertain to vacancies that occur after June 30, 2005, and before July 1, 2006;

(6) Repealing this bill on January 1, 2007; and

(7) Making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3182, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3182, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair