STAND. COM. REP. NO. 2317

Honolulu, Hawaii

RE: S.B. No. 2014

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 2014 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Director of Human Resources Development to abolish vacant positions within state departments and agencies under its jurisdiction that have been vacant for more than five years;

(2) Require a list of positions abolished pursuant to this measure to be included in the Director's annual report to the Legislature; and

(3) Require funds for abolished positions to immediately lapse to the credit of the general fund.

Your Committee received testimony in support of this measure from the Department of Human Resources Development, Grassroots Institute of Hawaii, and two individuals.

Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations, Hawaiʻi State Public Library System, and University of Hawaii Professional Assembly.

Your Committee received comments on this measure from the United Public Workers, AFSCME Local 646, AFL-CIO and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that a significant number of state positions have remained vacant for extended periods, resulting in inefficient use of public resources and reduced workforce capacity. By requiring automatic abolishment of positions vacant for five years or more, this policy will encourage departments and hiring managers to develop a hiring plan, rather than maintain vacancies, thereby improving workforce management across state departments.

Your Committee acknowledges the concern raised in testimony by the Department of Human Resources Development that automatically abolishing long-vacant positions and lapsing associated funds to the general fund, without regard to funding source, could violate federal grant requirements and statutory restrictions on special, revolving, and trust funds. Therefore, amendments to this measure are necessary to address this concern.

Accordingly, your Committee has amended this measure by:

(1) Inserting language to specify that the time a position has been vacant shall be computed beginning on the date the position was created or vacated by a regular civil service or probationary state employee;

(2) Inserting language to exclude positions that are federally funded from being automatically abolished pursuant to this measure;

(3) Requiring funds for positions abolished under this measure to immediately lapse to the credit of the appropriate fund, rather than the general fund;

(4) Inserting an effective date of January 1, 2077, to encourage further discussion; and

(5) Making a technical, nonsubstantive amendment 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. 2014, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2014, 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,

________________________________

BRANDON J.C. ELEFANTE, Chair