STAND. COM. REP. NO. 407

Honolulu, Hawaii

RE: S.B. No. 1440

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 Labor and Technology, to which was referred S.B. No. 1440 entitled:

"A BILL FOR AN ACT RELATING TO EXEMPTIONS FROM CIVIL SERVICE FOR CERTAIN POSITIONS IN THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt certain positions in the Department of Health, including the Hawaii State Hospital, from civil service.

Your Committee received testimony in support of this measure from the Department of Health.

Your Committee received testimony in opposition to this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and one individual.

Your Committee finds that civil service exemptions are necessary for certain positions in the Department of Health to make them more flexible and competitive for recruitment and retention purposes. Hiring certain specialized positions quickly and at a competitive pay rate is vital to maintaining and improving public health services. To achieve this, this measure exempts certain positions, including positions in the Hawaii State Hospital, from civil service law.

Your Committee has amended this measure by:

(1) Requiring the Department of Health to submit a report to the Legislature, including a performance audit of all positions exempted from civil service pursuant to this measure before the Regular Session of 2027; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1440, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1440, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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HENRY J.C. AQUINO, Chair