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. 753 entitled:

beg leave to report as follows:

The purpose of this measure is to require the retraining of civil service employees displaced by privatization or managed competition under Act 90, Session Laws of Hawaii 2001, unless the employee chooses severance, retirement, or employment transfer to the private company.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association.

Testimony in opposition to this measure was submitted by the Department of Human Resources and the Chamber of Commerce of Hawaii.

Your Committees find that during these tough economic times, it is prudent not to layoff employees because these employees will likely encounter difficulty in finding new employment and may instead end up collecting unemployment or welfare, thereby draining the State's coffers. Your Committee also finds that, staying within the intent of Act 90, Session Laws of Hawaii 2001, the State should be prohibited from resorting to layoffs, and instead pursue other alternatives, including the retraining of employees who have been displaced due to privatization or managed competition.

Your Committees have amended this measure by deleting SECTION 4 which is duplicative of SECTION 3.

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. 753, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 753, S.D. 1, and be referred to the Committee on Ways and Means.