STAND. COM. REP. NO. 2543

Honolulu, Hawaii

RE: S.B. No. 3180

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 Labor and Technology and Government Operations, to which was referred S.B. No. 3180 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Repeal existing law that limits the temporary employment of a person in a single position for two terms of eighty-nine days;

(2) Require each department and agency to submit an annual report to the Legislature that includes certain information about the department or agency's employment of eighty-nine-day hires; and

(3) Automatically abolish positions that have been vacant for more than forty-eight months.

Your Committees received testimony in support of this measure from the Department of Human Resources Development, Grassroot Institute of Hawaii, and one individual.

Your Committees received testimony in opposition to this measure from the Hawaiʻi State Public Library System.

Your Committees received comments on this measure from the Department of Labor and Industrial Relations; State Procurement Office; Department of Education; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committees find that there is a labor shortage in the State that makes it difficult to fill positions in the public sector. At the same time, your Committees find that numerous authorized positions have remained vacant for extended periods, thereby earmarking resources without regular legislative review. Your Committees further find that existing law authorizes state departments and agencies to temporarily hire individuals in civil service positions that are wholly funded by general funds for up to two eighty-nine-day terms, or up to eight eighty-nine-day terms with the approval of the Governor obtained through the Department of Human Resources Development. Your Committees also find that in the current labor market, these temporary hires are a vital bridge to maintaining essential operations, and the statutory limitations and conditions reduce operational flexibility for departments and agencies trying to maintain services amid persistent vacancies. This measure provides state departments and agencies with increased flexibility to address short-term staffing needs while establishing mechanisms to review and eliminate chronically vacant positions.

Your Committees acknowledge the concerns raised in testimony by the State Procurement Office regarding the potential abuse of the eighty-nine-day hire process and the need to ensure that the temporary hires allowed pursuant to this measure do not become a substitute for permanent civil service positions. Therefore, amendments to the measure are necessary to address these concerns.

Accordingly, your Committees have amended this measure by:

(1) Inserting language to allow state departments and agencies to temporarily employ the same person in the same position with the approval of the Governor;

(2) Inserting language to require departments and agencies to include in their annual report to the Legislature, regarding their employment of eighty-nine-day hires, whether the position has been filled by eighty-nine-day appointments for more than two terms;

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

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

As affirmed by the records of votes of the members of your Committees on Labor and Technology and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3180, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3180, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Technology and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ BRANDON J.C. ELEFANTE, Chair