Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 3011 entitled:

begs leave to report as follows:

The purpose of this measure is to provide public employees with satisfactory performance records in public service first consideration in filling civil service positions.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO. Testimony in opposition to this measure was submitted by the Judiciary, the Department of Human Resources Development, the Department of Human Resources for the City and County of Honolulu, the Department of Civil Service for the County of Hawaii, and the Department of Personnel Services for the County of Maui.

Your Committee finds that, although opportunities for career advancements are already available to public employees based on the merit system and the provision of intra-departmental and inter-departmental promotional examinations, additional efforts to retain and compensate qualified employees must be implemented. Act 253, Session Laws of Hawaii 2000, repealed section 76-22.5, Hawaii Revised Statutes, which required the director of personnel services to determine, establish, and maintain the manner in which positions would be filled, including by giving first consideration to competent public employees. Act 253 also required each jurisdiction to establish and maintain a separate civil service system based on the merit principle. It is unclear whether appropriate rules or policies have been established since Act 253 was enacted to provide a preference for current public employees under the merit system. Your Committee believes that the need to recruit and retain qualified employees, especially during these times of low unemployment rates, as well as the need to compensate competent public employees, necessitates the establishment of a clear policy on the issue under the law.

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 S.B. No. 3011 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.