STAND. COM. REP. NO. 2076

Honolulu, Hawaii

RE:    S.B. No. 2845

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred S.B. No. 2845 entitled:

"A BILL FOR AN ACT RELATING TO APPOINTMENT OF EXEMPT PERSONNEL IN THE DEPARTMENT OF HUMAN SERVICES FOR THE STATE MEDICAL ASSISTANCE PROGRAMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Director of Human Services to appoint and employ professional staff, not subject to civil service law, when the Director determines that the services to be performed are unique and essential to the execution of the state medical assistance programs.

     Your Committee received testimony in support of this measure from the Department of Human Services.  Your Committee received testimony in opposition to this measure from the Hawaii Government Employees Association and one individual.

     Your Committee finds that it is challenging for the Department to recruit, hire, and compensate high level managerial and professional staff to manage critical functions of the $1,800,000,000 medical assistance programs.  State civil service system requirements make it very difficult to recruit qualified individuals with the requisite knowledge for specialized positions within the complex medical assistance programs and offer them competitive salaries.

Your Committee finds that the Department needs some flexibility in its hiring ability and salary range options so that the Department can attract qualified applicants to fill important positions within the medical assistance programs.  However, your Committee also acknowledges the concern regarding the proliferation of positions that are exempt from civil service law.  Your Committee believes that a collaborative effort should be made to find a more permanent solution to the challenge the Department faces in being able to recruit qualified candidates and offer competitive salaries for high level positions.

     Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2845, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2845, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair