SB 2137: DHRD; Civil Service Positions; State Departments, Divisions, and Agencies; Recruitment and Hiring; Rules

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 76, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§76-    Recruitment; hiring; state departments, divisions, and agencies; rules.  (a)  Notwithstanding any law to the contrary, any state department, division, or agency may elect to assume the hiring and recruitment functions from the director of human resources development for vacant positions within that department, division, or agency.  The functions shall include but not be limited to:

     (1)  Composing position descriptions;

     (2)  Accepting applicants for the vacant positions;

     (3)  Completing minimum qualification reviews of applicants;

     (4)  Conducting interviews; and

     (5)  Directly hiring applicants who meet the minimum qualifications of the position.

     (b)  Any state department, division, or agency that elects to assume the hiring and recruitment functions for a vacancy pursuant to subsection (a) shall:

     (1)  Provide written notice of its election to the department of human resources development; and

     (2)  Perform all recruitment and hiring activities in a manner consistent with the provisions of this chapter and in compliance with any policies, standards, and procedures issued by the director of human resources development.

     (c)  The election of a state department, division, or agency to assume the hiring and recruitment functions for a vacancy pursuant to this section shall:

     (1)  Apply to recruitment and hiring activities initiated after June 30, 2027; and

     (2)  Be effective until the state department, division, or agency provides written notice to the department of human resources development of its decision to cancel its election.

     (d)  The department of human resources development shall adopt rules in accordance with chapter 91 necessary to implement this section."

     SECTION 2.  Section 26-5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  The department of human resources development shall be headed by a single executive to be known as the director of human resources development.  The director shall:

     (1)  Facilitate and expedite the hiring and recruitment for civil service positions under the jurisdiction of the department of human resources development; provided that any state department, division, or agency may elect to assume the hiring and recruitment functions from the director of human resources development for vacant positions within that department, division, or agency pursuant to section 76-  ; and

     (2)  Have the authority to reclassify and abolish vacant positions within state departments and agencies that are under the jurisdiction of the department of human resources development, subject to the following conditions:

          (A)  Prior to reclassifying or abolishing any vacant position as provided under this paragraph, the director shall submit a report to the legislature no later than twenty days prior to each regular session.  The report shall include a list of vacant positions for reclassification or abolishment, identify the agency each position is attached to, provide reasons for reclassifying or abolishing the position, and state the duration that the position has been vacant; and

          (B)  The director may reclassify or abolish any vacant position as provided under this paragraph no earlier than sixty days after the report has been submitted to the legislature as provided under subparagraph (A).

     (b)  The department shall administer the state human resources program, including human resources development and training, and central human resources services such as recruitment, examination, classification, pay administration, and payment of any claims as required under chapter 386[.]; provided that any state department, division, or agency may elect to assume the recruitment functions from the department of human resources development for vacant positions within that department, division, or agency."

     SECTION 3.  Section 76-22.6, Hawaii Revised Statutes, is repealed.

     ["[§76-22.6]  Recruitment; minimum qualification review; state departments, divisions, and agencies.  (a)  Notwithstanding any other law to the contrary, a state department, division, or agency, rather than the department of human resources development, may conduct a minimum qualification review of applicants for vacant positions within that department, division, or agency.

     (b)  A state department, division, or agency that elects to conduct its own minimum qualification review of applicants for a vacancy pursuant to subsection (a) shall notify the department of human resources development, which shall provide to the department, division, or agency:

     (1)  For positions with a recruitment closing date, the applications received for the vacancy received by the closing date for that vacancy; or

     (2)  For continuous recruitment positions, the applications received for the vacancy that have been received by a certain date, as determined by the state department, division, or agency; provided that the department of human resources development shall continue to transmit applications for that position on a reasonable rolling basis until the particular vacancy is filled;

provided further that the department of human resources development shall submit the applications received for a vacancy immediately to a state department, division, or agency if requested by the applicable state department, division, or agency.

     (c)  Upon completing the minimum qualification review of applicants for a vacancy, the state department, division, or agency shall submit to the department of human resources development the applications for individuals who have met the minimum qualifications for the vacancy; provided that the state department, division, or agency may immediately begin interviewing applicants that have been determined to meet the minimum qualifications for the vacant position.  The department of human resources development shall complete any other tasks necessary to facilitate the hiring of the applicants, including auditing and correcting any errors found in the minimum qualification review, as applicable; provided further that if any errors are found, the department of human resources development shall have five working days to correct the error and notify the state department, division, or agency."]

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect January 1, 2077.

Report Title:

DHRD; Civil Service Positions; State Departments, Divisions, and Agencies; Recruitment and Hiring; Rules

Description:

Beginning 7/1/2027, authorizes state departments, divisions, and agencies to elect to assume hiring and recruitment functions from the Department of Human Resources Development for vacant civil service positions within that department, division, or agency under certain conditions.  Requires the Department of Human Resources Development to adopt rules.  Repeals existing law authorizing state departments, divisions, and agencies to conduct minimum qualification review of applicants for their vacant civil service positions.  Effective 1/1/2077.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to Public Employment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 76, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§76-    Recruitment; hiring; state departments, divisions, and agencies; rules.  (a)  Notwithstanding any law to the contrary, any state department, division, or agency may elect to assume the hiring and recruitment functions from the director of human resources development for vacant positions within that department, division, or agency.  The functions shall include but not be limited to:

     (1)  Composing position descriptions;

     (2)  Accepting applicants for the vacant positions;

     (3)  Completing minimum qualification reviews of applicants;

     (4)  Conducting interviews; and

     (5)  Directly hiring applicants who meet the minimum qualifications of the position.

     (b)  Any state department, division, or agency that elects to assume the hiring and recruitment functions for a vacancy pursuant to subsection (a) shall:

     (1)  Provide written notice of its election to the department of human resources development; and

     (2)  Perform all recruitment and hiring activities in a manner consistent with the provisions of this chapter and in compliance with any policies, standards, and procedures issued by the director of human resources development.

     (c)  The election of a state department, division, or agency to assume the hiring and recruitment functions for a vacancy pursuant to this section shall:

     (1)  Apply to recruitment and hiring activities initiated after June 30,     ; and

     (2)  Be effective until the state department, division, or agency provides written notice to the department of human resources development of its decision to cancel its election.

     (d)  The department of human resources development shall adopt rules in accordance with chapter 91 necessary to implement this section."

     SECTION 2.  Section 26-5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  The department of human resources development shall be headed by a single executive to be known as the director of human resources development.  The director shall:

     (1)  Facilitate and expedite the hiring and recruitment for civil service positions under the jurisdiction of the department of human resources development; provided that any state department, division, or agency may elect to assume the hiring and recruitment functions from the director of human resources development for vacant positions within that department, division, or agency pursuant to section 76-  ; and

     (2)  Have the authority to reclassify and abolish vacant positions within state departments and agencies that are under the jurisdiction of the department of human resources development, subject to the following conditions:

          (A)  Prior to reclassifying or abolishing any vacant position as provided under this paragraph, the director shall submit a report to the legislature no later than twenty days prior to each regular session.  The report shall include a list of vacant positions for reclassification or abolishment, identify the agency each position is attached to, provide reasons for reclassifying or abolishing the position, and state the duration that the position has been vacant; and

          (B)  The director may reclassify or abolish any vacant position as provided under this paragraph no earlier than sixty days after the report has been submitted to the legislature as provided under subparagraph (A).

     (b)  The department shall administer the state human resources program, including human resources development and training, and central human resources services such as recruitment, examination, classification, pay administration, and payment of any claims as required under chapter 386[.]; provided that any state department, division, or agency may elect to assume the recruitment functions from the department of human resources development for vacant positions within that department, division, or agency."

     SECTION 3.  Section 76-22.6, Hawaii Revised Statutes, is repealed.

     ["[§76-22.6]  Recruitment; minimum qualification review; state departments, divisions, and agencies.  (a)  Notwithstanding any other law to the contrary, a state department, division, or agency, rather than the department of human resources development, may conduct a minimum qualification review of applicants for vacant positions within that department, division, or agency.

     (b)  A state department, division, or agency that elects to conduct its own minimum qualification review of applicants for a vacancy pursuant to subsection (a) shall notify the department of human resources development, which shall provide to the department, division, or agency:

     (1)  For positions with a recruitment closing date, the applications received for the vacancy received by the closing date for that vacancy; or

     (2)  For continuous recruitment positions, the applications received for the vacancy that have been received by a certain date, as determined by the state department, division, or agency; provided that the department of human resources development shall continue to transmit applications for that position on a reasonable rolling basis until the particular vacancy is filled;

provided further that the department of human resources development shall submit the applications received for a vacancy immediately to a state department, division, or agency if requested by the applicable state department, division, or agency.

     (c)  Upon completing the minimum qualification review of applicants for a vacancy, the state department, division, or agency shall submit to the department of human resources development the applications for individuals who have met the minimum qualifications for the vacancy; provided that the state department, division, or agency may immediately begin interviewing applicants that have been determined to meet the minimum qualifications for the vacant position.  The department of human resources development shall complete any other tasks necessary to facilitate the hiring of the applicants, including auditing and correcting any errors found in the minimum qualification review, as applicable; provided further that if any errors are found, the department of human resources development shall have five working days to correct the error and notify the state department, division, or agency."]

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

DHRD; Civil Service Positions; State Departments, Divisions, and Agencies; Recruitment and Hiring; Rules

Description:

Authorizes state departments, divisions, and agencies to elect to assume hiring and recruitment functions from the Department of Human Resources Development for vacant civil service positions within that department, division, or agency under certain conditions.  Requires the Department of Human Resources Development to adopt rules.  Repeals existing law authorizing state departments, divisions, and agencies to conduct minimum qualification review of applicants for their vacant civil service positions.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2545

Honolulu, Hawaii

RE:     S.B. No. 2137

        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. 2137 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize state departments, divisions, and agencies to elect to assume hiring and recruitment functions from the Department of Human Resources Development for vacant civil service positions within that department, division, or agency under certain conditions;

     (2)  Require the Department of Human Resources Development to adopt rules; and

     (3)  Repeal existing law authorizing state departments, divisions, and agencies to conduct minimum qualification review of applicants for their vacant civil service positions.

     Your Committees received testimony in support of this measure from the Department of Labor and Industrial Relations; Hawaiʻi State Public Library System; University of Hawaii Professional Assembly; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

     Your Committees received testimony in opposition to this measure from the Department of Human Resources Development.

     Your Committees find that there has been no improvement in the vacancy rate in the State's public sector leading to employees being overworked.  Your Committees further find that recruitment and hiring of vacant civil service positions needs to be decentralized.  This measure will improve the State's recruitment procedures to help lower vacancy rates.

     Your Committees have amended this measure by:

     (1)  Making the measure applicable to recruitment and hiring activities initiated after June 30, 2027; and

     (2)  Inserting an effective date of January 1, 2077, to encourage further discussion.

     Your Committees note the concerns expressed by the Department of Human Resources Development that this measure dismantles the State's centralized civil service recruitment model, replacing it with a fragmented agency-by-agency system that weakens uniform merit standards; increases legal, equity, and fiscal risks; duplicates administrative efforts and costs; and removes critical statewide oversight and accountability safeguards.  Your Committees further note the Department of Human Resources Development's position that existing delegated hiring authorities and targeted reforms already provide departments with flexibility while preserving consistency, accountability, and defensibility in the civil service system, and that this measure should be applied to agencies but not departments.  Your Committee finds that these issues raise concerns that merit further consideration and respectfully requests that subsequent Committees to which this measure is referred consider the matter.

     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. 2137, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2137, 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,