STAND. COM. REP. NO. 96-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2325

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred H.B. No. 2325 entitled:

"A BILL FOR AN ACT RELATING TO CIVIL SERVICE EXEMPT POSITIONS WITHIN THE DEPARTMENT OF LAND AND NATURAL RESOURCES,"

begs leave to report as follows:

The purpose of this measure is to exempt certain positions within the State Historic Preservation Division and Commission on Water Resource Management within the Department of Land and Natural Resources from the state civil service law.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Office of Planning and Sustainable Development; and Grassroot Institute of Hawaii. 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 the State Historic Preservation Division and Commission on Water Resource Management have experienced difficulties in establishing very specialized positions within the existing civil service system, maintaining competitive compensation in line with the private sector, retaining employees, and filling existing vacancies. Your Committee further finds that this measure would allow these two agencies to establish and fill non-civil service positions more expeditiously, thereby attracting and retaining qualified applicants in highly specialized fields and ensuring more competitive compensation.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 3000, to encourage further discussion; and

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

Your Committee respectfully requests your Committee on Labor, should it deliberate on this measure, to examine the issue of substantively reforming the State's civil service system to make it more flexible and competitive.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2325, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2325, H.D. 1, and be referred to your Committee on Labor.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair