SB2709

SECTION 1. The legislature finds that innovation in government is necessary to improve services and efficiencies, and better achieve state goals expected by the public. Even one new idea or innovative process could save millions of dollars.

The legislature also finds that recently, the State began upgrading its unemployment benefits system which will save countless hours of work processing unemployment benefits claims in the future. Furthermore, the department of land and natural resources has implemented innovative reservation and access systems in some parks that are now raising millions of dollars from tourists and reducing traffic in local communities. The legislature further finds that more innovative processes and ideas like these are being implemented in other places, and Hawaii can benefit by observing, investigating, and learning best practices and innovative processes, technologies, and ideas.

Accordingly, the purpose of this Act is to provide opportunities for employees in state departments to shadow employees of other public and private employers to discover what innovative best practices could be implemented in Hawaii to improve government services and outcomes, and help better achieve state goals.

SECTION 2. Chapter 78, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§78- Government innovation shadow program. (a) With the approval of the respective employer, a governmental unit of the State may participate in a program of temporary assignments of employees to shadow employees of another agency as a sending agency.

(b) A participating governmental unit of the State may consider its employee on a temporary shadow assignment as being on detail to a regular work assignment from the employee's position. The employee on temporary shadow assignment shall be entitled to the same rights and benefits as any other employee of the sending agency. The employee on temporary shadow assignment shall be entitled to a day of regular pay at the employee's existing salary for each day of the shadow assignment performed outside of the employee's normal expected work calendar on which the employee's salary is based, including weekends, holidays, or other periods in which the employee is not normally expected to work.

(c) Employees approved to participate in the program shall receive reimbursement for economy-class or equivalent airfare and other necessary travel expenses to and from the place of the shadow assignment. The employee shall receive per diem payments calculated using the applicable federal per diem rate for the respective state or place of shadow assignment for each working day of the shadow assignment plus two additional days for travel.

(d) Employees applying for a shadow assignment shall provide a written proposal for a shadow assignment to their respective government unit, identifying the potential benefits they may find for the State. An agreement consistent with this section and policies of the employer shall be made between the sending and receiving agencies on matters relating to the shadow assignment, provided that the agreement shall not diminish any rights or benefits to which an employee of a governmental unit of the State is entitled pursuant to this section.

(e) Not more than ten employees shall be approved for shadow assignment from each governmental unit or department of the State each fiscal year. Approved shadow assignments shall be no longer than five working days each.

(f) No later than fourteen days following the completion of a shadow assignment, the employee shall submit a written report to the employee's respective government unit and the department of human resources development highlighting the details of the employee's shadow assignment, and at least three of the most meaningful innovations, process improvements, or best practices observed that could be reasonably adopted by the State to make a difference in departments, programs, or outcomes. The department of human resources development shall compile and sort recommendations by each department or unit of government for which the recommendations apply and submit an annual report to the legislature no later than December 1 of each year.

(g) For purposes of this section:

"Agency" means any local, national, or foreign governmental agency, or private organizations or business; provided that the private agency or business has no business or interest with or before the government of the State.

"Shadow assignment" means a temporary placement in a relevant work environment to observe, investigate, and learn best practices and innovative processes, technologies, or ideas that may be applicable to the work the employee is involved with in their governmental unit of the State."

SECTION 3. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $750,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the government innovation shadow program.

The sum appropriated shall be expended by the department of human resources development for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2709
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII