REPORT TITLE:
State Govt; Restructuring


DESCRIPTION:
Establishes a 6-member advisory commission on government
restructuring to assist in reducing the size and bureaucracy of
state government and increasing government efficiency and
effectiveness.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           105
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO REFORM OF STATE GOVERNMENT.



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

 1      SECTION 1.  The legislature finds that there is an immediate
 
 2 need to streamline and improve the delivery of government
 
 3 services by restructuring state government.
 
 4      Studies to improve the responsiveness and efficiency of
 
 5 state government have already been conducted, ranging from
 
 6 reports in 1974 and 1977 from the commission on organization of
 
 7 government ("CORE"), to the 1993 report of the interim commission
 
 8 on government redesign, which supported the need to redesign the
 
 9 delivery of state government services.
 
10      Recognizing the need to improve the delivery of government
 
11 services and reduce government bureaucracy, the legislature in
 
12 1996 passed Act 297, Session Laws of Hawaii 1996 to address the
 
13 consolidation and streamlining of government departments and
 
14 services.  That Act acknowledged that although the current state
 
15 administration had taken certain actions to respond to the
 
16 State's fiscal crisis and restructure state government agencies
 
17 for more efficient and effective delivery of government services,
 
18 the task of reorganizing state government falls jointly on the
 
19 legislature and the governor:  the legislature to set policies
 

 
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 1 and the governor to develop and implement an action plan to
 
 2 implement the policies.
 
 3      In response to Act 297, the governor issued an interim
 
 4 report to the legislature entitled "Restructuring State
 
 5 Government Services" (December, 1996), which made a number of
 
 6 findings and recommendations to streamline government.  However,
 
 7 the legislature finds that these efforts, while important, do not
 
 8 go far enough, and that the circumstances that prompted the
 
 9 enactment of Act 297 still remain.
 
10      There continues to be a need to resolve the State's economic
 
11 stagnation, as well as a need for government agencies to adapt to
 
12 the ever-changing needs and demands of the public they serve.
 
13 State agencies must revise and retool their concepts of public
 
14 service in order to remain responsive and efficient.  There
 
15 continues to be not only duplication of effort among state
 
16 agencies but also encroachment into the functions of the private
 
17 sector.  Many state government services, although well-meaning,
 
18 have placed increased strain on the State's weak fiscal
 
19 situation.  In order to carry out the most essential public
 
20 services, the State must make the best use of every resource,
 
21 every tax dollar, and every personnel position.
 
22      The legislature further finds that the State's continuing
 
23 poor economy, weak revenue projections, and budget gaps between
 

 
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 1 expected expenses and income requires a determination as to the
 
 2 best means to increase government productivity and realize
 
 3 additional cost savings.  The legislature finds that while the
 
 4 State's economic situation is weak, it nonetheless presents an
 
 5 opportunity to enhance the productivity of state government and
 
 6 to fill the budget gap with the resultant savings.
 
 7      Accordingly, the purpose of this Act is to accelerate the
 
 8 restructuring of state government by:
 
 9      (1)  Creating an advisory commission on government
 
10           restructuring;
 
11      (2)  Stating appropriate policies for restructuring; and
 
12      (3)  Providing for a comprehensive implementation strategy
 
13           to be utilized in the review of the departments and
 
14           offices of the executive branch of state government.
 
15      The legislature finds that these measures will help to
 
16 enhance productivity and promote economic growth in Hawaii
 
17 through the redirection of government first to a commitment to
 
18 education of our children and more efficient delivery of services
 
19 to stimulate economic growth of small businesses and reshaping
 
20 economic development programs.
 
21      SECTION 2.  Advisory commission on government restructuring;
 
22 establishment; membership; appointment; compensation; duties.
 
23 (a)  There is established an advisory commission on government
 

 
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 1 restructuring in the office of the governor for administrative
 
 2 purposes.  The advisory commission shall consist of the following
 
 3 six members to be appointed by the governor as provided in
 
 4 section 26-34:
 
 5      (1)  Two members to be appointed by the governor;
 
 6      (2)  Two members to be appointed from a list of nominees
 
 7           submitted by the president of the senate;
 
 8      (3)  Two members to be appointed from a list of nominees
 
 9           submitted by the speaker of the house of
 
10           representatives; and
 
11      (4)  If the governor fails to make these appointments within
 
12           thirty days, the president of the senate and the
 
13           speaker of the house of representatives shall make the
 
14           appointments.
 
15      (b)  In carrying out its duties under this section, the
 
16 advisory commission may request staff assistance from the
 
17 department of budget and finance, department of business,
 
18 economic development, and tourism, and other appropriate state
 
19 agencies.
 
20      (c)  The members of the advisory commission shall select the
 
21 chairperson and serve without compensation, but shall be
 
22 reimbursed for expenses, including travel expenses, necessary for
 
23 the performance of their duties.
 

 
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 1      (d)  The advisory commission shall study the role of each of
 
 2 the departments and agencies in the executive branch of state
 
 3 government, and develop an action plan to restructure state
 
 4 government and reduce government bureaucracy, consolidate
 
 5 agencies, and streamline procedures as necessary for the
 
 6 efficient functioning of state government based on the following
 
 7 policies and goals:
 
 8      (1)  The creation of a clear sense of mission for
 
 9           restructuring state government;
 
10      (2)  The avoidance of making changes to reorganize state
 
11           government for the sake of change only;
 
12      (3)  The development of government which provides "user-
 
13           friendly" services in and out of state government;
 
14      (4)  The adoption of "best practices" of management and
 
15           operations;
 
16      (5)  The search for economies of scale;
 
17      (6)  The elimination of duplicative or outmoded functions
 
18           and activities;
 
19      (7)  The enhancement of productivity by consolidating
 
20           functions;
 
21      (8)  The elimination of unnecessary regulation;
 
22      (9)  The redesigning of processes to increase efficiency,
 
23           cut costs, and reduce public inconvenience;
 

 
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 1     (10)  The exposure of government operations to competition;
 
 2     (11)  The guarantee of effective, efficient government
 
 3           operations; and
 
 4     (12)  The realization of significant long-term savings.
 
 5      (e)  In developing an action plan under subsection (d), the
 
 6 advisory commission shall make recommendations to achieve the
 
 7 following:
 
 8      (1)  Consolidate or restructure redundant state government
 
 9           services, programs, and operations; 
 
10      (2)  Improve the departmental effectiveness with which
 
11           general fund dollars are spent;
 
12      (3)  Reduce the ratio of management, administrative,
 
13           clerical, and supervisory personnel to the front-line
 
14           personnel;
 
15      (4)  Integrate the effective use of technology;
 
16      (5)  Achieve the most effective delivery of services to
 
17           Hawaii citizens; and
 
18      (6)  Any other areas that the advisory commission deems
 
19           relevant to enhance productivity in Hawaii state
 
20           government.  The advisory commission shall develop
 
21           criteria or benchmarks as necessary to assist in the
 
22           development of productivity plans for state
 
23           departments.
 

 
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 1      SECTION 3.  Report.  The advisory commission shall report
 
 2 its  preliminary findings and recommendations, including any
 
 3 proposed implementing legislation, to the legislature no later
 
 4 than twenty days before the convening of the regular session of
 
 5 2000, and shall submit its final report no later than twenty days
 
 6 before the convening of the regular session of 2001.
 
 7      SECTION 4.  There is appropriated out of the general
 
 8 revenues of the State of Hawaii the sum of $20,000, or so much
 
 9 thereof as may be necessary for fiscal year 1999-2000, for the
 
10 purposes of this Act.  The sums appropriated shall be expended by
 
11 the office of the governor.
 
12      SECTION 5.  The advisory commission on government
 
13 restructuring shall cease to operate after the adjournment sine
 
14 die of the 2001 regular session of the legislature.
 
15      SECTION 6.  This Act shall take effect upon its approval;
 
16 provided that section 4 shall take effect on July 1, 1999.
 
17 
 
18                           INTRODUCED BY:  _______________________