REPORT TITLE:
Government Operations


DESCRIPTION:
Amends Act 230, SLH 1998, to establish specific duties for the
managed process committee. (SB450 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        450
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 2
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO STATE GOVERNMENT. 


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

 1      SECTION 1.  Act 230, Session Laws of Hawaii 1998, is amended
 
 2 as follows:
 
 3      1.  By amending section 6 to read:
 
 4      "SECTION 6.  (a)  There is created a committee that shall
 
 5 develop, monitor, and review a managed process that enables state
 
 6 and county governments to implement public-private competition
 
 7 for government services through the managed process that
 
 8 determines whether a particular service can be provided more
 
 9 efficiently, effectively, and economically by a public agency or
 
10 a private enterprise.  The managed process shall [consider]
 
11 include but not be limited to:
 
12      (1)  Consideration of all relevant costs, [identify]
 
13           development of a costing model that accurately
 
14           estimates and accounts for the total cost of providing
 
15           a government function, and development of methods by
 
16           which government in-house costs can be compared to
 
17           private sector costs;
 
18      (2)  Consideration of the costs of conversion to the private
 
19           sector, including transaction costs, disruption costs,
 
20           contract monitoring costs, and revenue increases or
 
21           decreases;
 

 
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 1      (3)  Identification of the types of contracts which may be
 
 2           exempt from the managed process[, establish];
 
 3      (4)  Establishment of protections for the affected state and
 
 4           county employees[, and ensure];
 
 5      (5)  Ensuring that civil service laws, [merit principles,]
 
 6           and collective bargaining laws are not violated[.];
 
 7      (6)  Ensuring that all costs, including the costs of
 
 8           liability insurance, product and performance liability,
 
 9           fringe and employee retirement, disability benefits,
 
10           and other allocated direct and indirect overhead costs
 
11           are realistic and fair; and
 
12      (7)  Development of a handbook and training program that
 
13           educates government agencies in the competitive
 
14           government process.
 
15      (b)  The committee members shall be appointed by the
 
16 governor within sixty days from the date of this Act.
 
17      The members of the committee shall include:
 
18      (1)  The director of finance;
 
19      (2)  The comptroller;
 
20      (3)  The director of human resources development;
 
21      (4)  One representative from each of the four major counties
 
22           to be appointed by the respective mayors;
 
23      (5)  Two public-sector union representatives;
 

 
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 1      (6)  One private-sector union representative;
 
 2      (7)  Two representatives for private-sector businesses; and
 
 3      (8)  One representative for nonprofit organizations that is
 
 4           a recipient or is entitled to be a recipient under
 
 5           chapters 42D and 42F, Hawaii Revised Statutes.
 
 6      The committee shall elect a chairperson and vice-chairperson
 
 7 from among its members.  A majority of the members shall
 
 8 constitute a quorum.  The department of accounting and general
 
 9 services shall provide administrative support for the committee.
 
10 Members of the committee shall serve without compensation.  The
 
11 committee shall complete a draft of the managed process by
 
12 December 31, 2000, and complete the managed process by
 
13 December 31, 2001.  The committee shall submit [its report,
 
14 including its] a report of its findings, plans, implementations,
 
15 and recommendations for statutory changes to civil service laws
 
16 and such other laws as may be necessary to implement the managed
 
17 process, to the legislature not less than twenty days prior to
 
18 the convening of [the 1999] each regular session of the
 
19 legislature."
 
20      2.  By amending subsections (b) and (c) of section 14 to
 
21 read:
 
22      "(b)  All new contracts for goods, services, or construction
 
23 which are entered into by the State or county after the effective
 

 
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 1 date of this Act [and prior to July 1, 2001, which extend beyond
 
 2 June 30, 2001,] shall include a provision stating that the
 
 3 contract, during its term, is subject to a single review by the
 
 4 State or county pursuant to the managed process in Part III,
 
 5 Section 6.  Pursuant to the managed process review, the contract
 
 6 may be canceled, renegotiated, continued, or extended by the
 
 7 State or county.  All of these contracts shall continue to be
 
 8 exempt from civil service laws, merit principles, and collective
 
 9 bargaining laws for the duration of the contract even if a
 
10 managed process is not implemented.
 
11      (c)  All contracts for goods, services, or construction
 
12 which are entered into by the State or county on or before the
 
13 effective date of this Act[, including contracts which extend
 
14 beyond June 30, 2001,] shall not be subject to review by the
 
15 State or county pursuant to the managed process in Part III,
 
16 Section 6.  All of these contracts shall continue to be exempt
 
17 from civil service laws and merit principles for the duration of
 
18 the contract."
 
19      SECTION 2.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 3.  This Act shall take effect on August 15, 2001.