STAND. COM. REP. NO. 3436

Honolulu, Hawaii

RE: S.R. No. 75

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.R. No. 75 entitled:

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT TO COLLABORATE WITH STATE DEPARTMENTS, AGENCIES, AND LABOR ORGANIZATIONS IN COMPLETING THE COMPREHENSIVE REVIEW OF THE CLASSIFICATION AND COMPENSATION SYSTEMS FOR ALL CIVIL SERVICE POSITIONS UNDER ITS JURISDICTION,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Department of Human Resources Development (DHRD) to collaborate with state departments, agencies, and labor organizations in completing the comprehensive review of the classification and compensation systems for all civil service positions under its jurisdiction.

Your Committee received testimony in support of this measure from the Department of Human Resources and Development; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that DHRD's 2026 annual report to the Legislature shows that state agencies are experiencing severe, persistent vacancies and an aging workforce that is approaching retirement. Your Committee further finds that the classification and compensation structures for state civil service positions are outdated and uncompetitive, making it extremely difficult to attract and retain qualified employees. Therefore, Act 180, Session Laws of Hawaii 2025, directed DHRD to conduct a comprehensive review of the classification and compensation systems to all civil service positions under its jurisdiction. By requiring DHRD to collaborate with the state departments and agencies that hire, and labor organizations that represent, the civil service positions subject to review. This measure ensures that DHRD receives the insight necessary for the development of recommendations to improve hiring and retention of qualified state employees to provide essential services to the public.

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 concurs with the intent and purpose of S.R. No. 75 and recommends its adoption.

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

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BRANDON J.C. ELEFANTE, Chair