STAND. COM. REP. NO. 3330

Honolulu, Hawaii

RE: H.B. No. 1541

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Health and Human Services and Labor and Technology, to which was referred H.B. No. 1541, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HEALTH,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Exempt certain positions in the Developmental Disabilities Division of the Department of Health and Hawaii State Hospital from civil service; and

(2) Authorize the Director of Health to appoint two additional associate administrators and two project managers for the Hawaii State Hospital or a secure psychiatric rehabilitation facility.

Your Committees received testimony in support of this measure from the Department of Health, Aloha Independent Living Hawaii, and one individual.

Your Committees received testimony in opposition to this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committees find that the Hawaii State Hospital and the Developmental Disabilities Division of the Department of Health serve some of the most vulnerable populations and operate in complex environments that require rapid decision-making, specialized expertise, and strong leadership. These positions do not appropriately fit into existing civil service classes because their duties and responsibilities are highly specialized, often requiring advanced professional knowledge, unique skill sets, and flexibility beyond the scope of standardized classifications. Additionally, the evolving nature of behavioral health and developmental disability services demands adaptability and innovation, which are difficult to achieve under traditional classification and recruitment systems. This measure ensures the Department of Health can effectively manage and deliver critical services for individuals with mental health needs and developmental disabilities by exempting certain key positions from civil service.

Your Committees have amended this measure by inserting an effective date of January 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Labor and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1541, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1541, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Labor and Technology,

________________________________ BRANDON J.C. ELEFANTE, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair