STAND. COM. REP. NO. 1779

Honolulu, Hawaii

RE: H.B. No. 159

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 159, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO QUALIFIED COMMUNITY REHABILITATION PROGRAMS,"

begs leave to report as follows:

The purpose and intent of this measure is to balance the protection of public sector jobs with the maintenance of employment opportunities for persons with disabilities.

Specifically, this measure clarifies that the civil service exemption for personal service contracts for building, custodial, and grounds maintenance services with a qualified community rehabilitation program shall have a cost of no more than an unspecified amount in the aggregate, per private party person or entity.

Your Committee received written comments in support of this measure from Hawaii State AFL-CIO, Hawaii Government Employees Association, and United Public Workers.

Your Committee received written comments on this measure from the County of Maui and Ka Lima O Maui, Ltd.

Your Committee finds that the civil service exemption for certain types of personal service contracts with qualified community rehabilitation programs helps to provide important employment opportunities for adults with disabilities. Your Committee further finds that this benefit should be balanced with appropriate safeguards that ensure the protection of public sector jobs.

Your Committee respectfully requests that your Committee on Conference, should it convene to deliberate on this measure, consider the testimony of the County of Maui and Ka Lima O Maui, which requested that the maximum aggregate value of personal service contracts be set at $2,000,000 for fiscal year 2025-2026, with an allowance for inflation year over year.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 159, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair