REPORT TITLE: 
Privatization; publication of
statutes
DESCRIPTION:
Requires that the state competitively contract out the
publication of the Hawaii Revised Statutes and the Hawaii Session
Laws.

 
HB HMIA 99-247
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO THE PUBLICATION OF THE HAWAII REVISED STATUTES.



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


 1      SECTION 1.  The legislature finds that efficiency in
 
 2 government is urgently needed.  Despite growing public
 
 3 indignation at government waste and despite efforts by elected
 
 4 officials, very little real progress has been made.  Attempts at
 
 5 making government more efficient and reducing its size have
 
 6 failed because the incentives that face public managers and
 
 7 employees are skewed toward higher spending.
 
 8      Competition in government is the answer.  Competition
 
 9 improves performance and keep costs down.  On the other hand,
 
10 monopolistic practices by government are characterized by higher
 
11 prices and limited production.  At a time when the economy is
 
12 depressed, when jobs are scarce, when the cost to live in
 
13 paradise is extraordinarily high, the public can no longer afford
 
14 the high cost of inefficient and oversized government.  The time
 
15 has come for the public to ask whether government is providing
 
16 services that are and should more appropriately be provided by
 
17 the private sector.  Private companies have been used effectively
 
18 under competitive contracts to provide public services at lower
 
19 costs and with lower annual cost increases in most states.
 

 
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 1      Competitive contracting brings more responsive government.
 
 2 The public determines what services should be contracted and what
 
 3 specifications should apply to the service.  The competitive
 
 4 market responds to the invitation of the government agency, and
 
 5 one or more producers is selected to provide a specific service 
 
 6 for a period of time.  Government retains policy control and
 
 7 public scrutiny over the service, while the competitive market
 
 8 supplies the service. 
 
 9      The purpose of this bill is to require the privatization of
 
10 the publication of the Hawaii Revised Statutes and the Hawaii
 
11 Session Laws. The participation of the private sector in the
 
12 publication of these books and documents is a concept whose time
 
13 has come. 
 
14      Competitive contracting will provide the service of making
 
15 available the Hawaii Revised Statutes and the Hawaii Session Laws
 
16 at a cost significantly less than the state presently spends.
 
17      The legislature further finds that competitive contracting
 
18 of the publication of these books and documents will save the
 
19 state money, reduce the size of government, provide jobs to the
 
20 public, expand the current tax base, and provide better service
 
21 to public.
 
22      SECTION 2.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
23 is amended by adding a new section to be appropriately designated
 

 
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 1 and to read as follows:
 
 2      "§23G-  Definitions.  The following terms, whenever used or
 
 3 referred to in this part, shall have the following meanings,
 
 4 unless the context clearly requires a different meaning:
 
 5      "Attributable fully allocated cost" means the operating and
 
 6 capital cost of a public service including direct, indirect and
 
 7 allocated costs minus the cost of any function not to be
 
 8 competitively contracted.
 
 9      "Contract analysis" means a periodic analysis in which the
 
10 costs of the production of a good or service by the vendor
 
11 currently producing such good or service are compared to the
 
12 costs of production by other vendors.  The process assumes the
 
13 comparison of the true costs by each vendor that result in
 
14 comparable public goods or services.
 
15      "Government entity" means any of the following:  the state,
 
16 a local government, a special district or any other public body
 
17 authorized or established under the laws or authority of the
 
18 state (such as counties, cities, towns, townships, villages,
 
19 special districts, government enterprises, publicly owned
 
20 utilities, etc.).
 
21      "Public goods and services" means any product or service
 
22 produced by a covered government entity under its public
 
23 authority and any product or service supportive of or ancillary
 

 
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 1 to the functions of the government entity."
 
 2      SECTION 3.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
 3 is amended by adding a new section to be appropriately designated
 
 4 and to read as follows:
 
 5      "§23G-     Competitive contracting of the Hawaii Revised
 
 6 Statutes and the Hawaii Session Laws.  (a)  On an annual basis,
 
 7 the Legislative Reference Bureau shall perform a contract
 
 8 analysis covering publication of the Hawaii Revised Statutes
 
 9 (hereinafter HRS) and the Hawaii Session Laws (hereinafter
 
10 Session Laws) for which it has received a qualifying petition of
 
11 interest from a private company pursuant to section      .  No
 
12 more than one contract analysis shall be required for the HRS and
 
13 the Session Laws within a one-year period.
 
14      (b)  The LRB shall retain full control of service
 
15 quantities, service specifications, standards and any other
 
16 matter demonstrably related to the delivery of the HRS and
 
17 Session Laws in a manner consistent with the public interest.
 
18      (c)  The LRB shall fully comply with this section as soon as
 
19 practicable, but shall in any case be in full compliance with its
 
20 provisions within one year of enactment."
 
21      SECTION 4.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
22 is amended by adding a new section to be appropriately designated
 
23 and to read as follows:
 

 
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 1      "§23G-      Free enterprise participation process.  (a) The
 
 2 LRB shall establish a free enterprise participation process,
 
 3 including:
 
 4           (1) Maintenance of a list of interested proposers,
 
 5           which shall include all organizations that have
 
 6           requested inclusion on such list.  The division shall
 
 7           advertise for additions to such list at least annually.
 
 8           (2) Distribution to companies on the mailing list of
 
 9           notices specifying dates and deadlines with respect to
 
10           the routine contract analysis, annual deadlines for
 
11           submittal of petitions of interest from private
 
12           companies.
 
13           (3) Division or department appeal process covering
 
14           petitions of interest and requests for proposals.
 
15      (b)  The free enterprise participation process shall seek
 
16 the widest possible participation of interested private companies
 
17 in the publication of the HRS and Session Laws."
 
18      SECTION 5.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
19 is amended by adding a new section to be appropriately designated
 
20 and to read as follows:
 
21      "§23G-      Petitions of interest.  (a)  Private companies
 
22 interested in providing goods or services for the publication of
 
23 the HRS and Session Laws may file petitions of interest subject
 

 
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 1 to the free enterprise participation process of the LRB.
 
 2      (b)  Petitions of interest shall include:
 
 3           (1)  A description of the public good or service that
 
 4           the private company would like to provide for the
 
 5           publication of the HRS and Session Laws;
 
 6           (2)  A statement that the private company believes that
 
 7           it can provide the same service, under contract to the
 
 8           LRB, for a lower cost than the present cost;
 
 9           (3)  A description of the private company's financial
 
10           capacity to provide the service;
 
11           (4)  A description of the private company's technical
 
12           ability to provide the public good or service,
 
13           especially evidenced by identical, similar, or relevant
 
14           goods or services provided by the company, whether
 
15           under public sponsorship or not.
 
16      (c)  Within 90 days the LRB shall determine whether there is
 
17 sufficient reason to believe that the private company has the
 
18 financial and technical ability to provide the public good or
 
19 service.
 
20      (d)  The LRB shall make one of two findings with respect to
 
21 the petition of interest:
 
22           (1)  Certification of petition:  that the private
 
23           company has sufficient financial and technical ability
 

 
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 1           to provide the good or service;
 
 2           (2)  Denial of petition:  that the private company has
 
 3           insufficient financial and/or technical ability to
 
 4           provide the good or service.  The LRB shall state its
 
 5           justification for such a finding.
 
 6 However, if the LRB has scheduled an immediate contract analysis
 
 7 for substantially the same public good or service specified in
 
 8 the petition of interest, it shall notify the petitioner that
 
 9 such an analysis has been scheduled, without making a finding on
 
10 the petition.
 
11      (e)  If the LRB certifies the petition, it shall undertake a
 
12 contract analysis with respect to the public good or service
 
13 specified in the petition, at the first possible opportunity
 
14 within its schedule adopted under its free enterprise
 
15 participation process."
 
16 
 
17      SECTION 6.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
18 is amended by adding a new section to be appropriately designated
 
19 and to read as follows:
 
20      "§23G-      Contract analysis and public goods or services
 
21 contracts.  (a)  Request for proposals ("RFP") requirement:  The
 
22 contract analysis shall be performed through the issuance and
 
23 evaluation of requests for proposals from private companies.
 

 
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 1      (b)  (1)  Request for proposal process:  The LRB shall seek
 
 2           the widest reasonable distribution of each request for
 
 3           proposals, and at a minimum shall send each request for
 
 4           proposals to each organization on the interested
 
 5           proposers list and to each additional organization that
 
 6           requests the specific request for proposal.  
 
 7           (2)  The LRB shall advertise each request for proposals
 
 8           within 10 days of issuance, and in accordance with its
 
 9           general procurement policy.
 
10           (3)  Proposals submission shall be required no sooner
 
11           than 45 days after the RFP advertisement date.
 
12           (4)  A request for proposals shall clearly specify the
 
13           goods or services to be procured and include a draft
 
14           contract.
 
15      (c)  Evaluation of proposals:  The LRB shall award the
 
16 contract to the private company whose proposal is responsive,
 
17 responsible and offers the lowest cost.
 
18      (d)  Limitation on contract length:  Any public good or
 
19 service operated under competitive proposals on the effective
 
20 date of this section or thereafter shall be subject to a new
 
21 competitive proposal at least every five years.  Renewal options
 
22 that extend a contract beyond five years shall be prohibited.
 
23      (e)  No reversion to non-competitive operation:  In no case
 

 
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 1 shall a good or service operated under competitive proposal be
 
 2 returned to operation not subject to competitive proposal.
 
 3      (f)  No labor restrictions:  The LRB shall not establish or
 
 4 impose any requirement relating to salaries, wages, benefits, or
 
 5 labor union representation, staffing levels, work rules, or other
 
 6 conditions of employment of private company employees.  All
 
 7 contractors shall comply with applicable federal and state labor
 
 8 laws.
 
 9      (g)  Competitive determination of contract prices required:
 
10 All contract prices shall be competitively determined through a
 
11 request for proposal.  No change in contract payment amount to a
 
12 private contractor shall be made except as specified in the
 
13 contract.  Payment changes in a contract shall be limited to
 
14 indices, escalators, deflators, changes in service level, and
 
15 other expressly stated or calculable amounts, consistent with the
 
16 request for proposal and the proposal of the private contractor
 
17 awarded the contract.
 
18      (h)  Interim contracts:  The LRB may execute interim standby
 
19 competitive contracts with one or more private contractors to
 
20 provide any good or service on an interim basis in the event that
 
21 the LRB is required to do so by the public welfare.  Any good or
 
22 service operated under a standby contract shall be subject to
 
23 competitive proposal within six months of the standby contract
 

 
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 1 service award.
 
 2      (i)  No restrictive agreements:  The LRB shall not make or
 
 3 be bound by any contract, agreement, or assurance that restricts
 
 4 its ability to comply with this chapter in any respect."
 
 5      SECTION 7.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
 6 is amended by adding a new section to be appropriately designated
 
 7 and to read as follows:
 
 8      "§23G-       Liability and sovereign immunity.  (a)  The
 
 9 contractor shall assume all liability arising under a contract
 
10 entered into pursuant to this chapter.
 
11      (b)  The sovereign immunity of the state shall not extend to
 
12 the contractor.  Neither the contractor nor the insurer of the
 
13 contractor may plead the defense of sovereign immunity in any
 
14 action arising out of the performance of the contract."
 
15      SECTION 8.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
16 is amended by adding a new section to be appropriately designated
 
17 and to read as follows:
 
18      "§23G-       Termination of a contract.  (a)  The LRB may,
 
19 upon demonstration that a breach of contract has occurred and
 
20 that after the passage of a reasonable period of time the breach
 
21 has not been cured, without penalty to the LRB, cancel a contract
 
22 for the provision of goods or services at any time upon giving a
 
23 six-month written notice."
 

 
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 1      SECTION 9.  Chapter 23G, Part II, Hawaii Revised Statutes,
 
 2 is amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§23G-       Rulemaking authority.  The LRB shall promulgate
 
 5 reasonable rules and regulations necessary to carry out this
 
 6 Act."
 
 7      SECTION 10.  Section 23G-3, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§23G-3 General purposes of bureau.  The purpose of the
 
10 office of the legislative reference bureau shall be:
 
11      (1)  To provide a comprehensive research and reference
 
12           service on legislative problems for the legislature;
 
13      (2)  To conduct impartial research, including legal
 
14           research, as may be necessary for the enactment of
 
15           substantive legislation, upon request by the
 
16           legislature, legislative committees, or legislators, or
 
17           on its own initiative;
 
18      (3)  To disseminate its research findings to the legislature
 
19           on all research projects undertaken upon the request of
 
20           the legislature or legislative committees;
 
21      (4)  To secure reports of various officers and boards of the
 
22           State and as far as may be of the states and of the
 
23           other territories of the United States and such other
 
24           material, periodicals, or books as will furnish the
 

 
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 1           fullest information practicable upon all matters
 
 2           pertaining to current or proposed legislative problems;
 
 3      (5)  To secure information for the legislature, legislative
 
 4           committees, and legislators by cooperating with the
 
 5           legislative reference services in the states and with
 
 6           the legislative service conference maintained by the
 
 7           council of state governments;
 
 8      (6)  To maintain a reference library for use by the
 
 9           legislature and legislative service agencies.  Subject
 
10           to the priorities established by the director,
 
11           reference materials may be made available to the
 
12           various departments and agencies of the State and the
 
13           general public;
 
14      (7)  To draft or aid in drafting bills, resolutions,
 
15           memorials, and amendments thereto, including committee
 
16           reports, for the legislature, legislative committees,
 
17           and legislators when requested;
 
18      (8)  To control and maintain the operations of any
 
19           legislative data processing program as may be
 
20           established;
 
21      (9)  To serve, upon request, in an advisory capacity to the
 
22           legislature and its committees on all matters within
 
23           its competencies and responsibilities;
 

 
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 1     (10)  To assist, upon request, legislative service agencies
 
 2           on matters within its competency; and
 
 3     (11)  To perform the function of statute revision and
 
 4           oversight of the publication of session laws,
 
 5           supplements, and replacement volumes."
 
 6      SECTION 11.  Section 23G-12, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§23G-12  Duties.  In performing the function of statute
 
 9 revision and the oversight of the publication of session laws,
 
10 and supplements, and replacement volumes, the duties of the
 
11 revisor of statutes, in the order of priority shall be:
 
12      (1)  The oversight of the publication of the session laws;
 
13      (2)  The oversight of the publication of supplements to the
 
14           revised statutes;
 
15      (3)  The oversight of the publication of replacement volumes
 
16           of the revised statutes;
 
17      (4)  The review of annotations to the revised statutes;
 
18      (5)  The continuous revision of the statutes of Hawaii;
 
19      (6)  The publication of the Hawaii administrative rules
 
20           index and supplements thereto; and
 
21      (7)  The preparation of rules of format to be followed by
 
22           all state agencies in the compilation and publication
 
23           of their rules and the distribution of copies of the
 

 
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 1           format rules to all state agencies."
 
 2      SECTION 12.  Section 93-2, Hawaii Revised Statutes, is
 
 3 amended by amending the definition of "publication" to read as
 
 4 follows:
 
 5      "Publication" includes any document, compilation, journal,
 
 6 report, statute, regulation, ordinance issued in print by any
 
 7 state or county agency, and confidential publications which shall
 
 8 be deposited in accordance with security regulations to be
 
 9 determined by the issuing agency. This shall include the Hawaii
 
10 Revised Statutes, and the Hawaii Session Laws which are published
 
11 under private contract pursuant to section 23G-  ."
 
12      SECTION 13.  Section 23G-17, Hawaii Revised Statutes, is
 
13 repealed.
 
14      "[§23G-17  Printing; contracts.  The office of the
 
15 legislative reference bureau shall cause sufficient copies of the
 
16 session laws, supplements, and replacement volumes to be printed.
 
17 The bureau may contract for the publications with or without
 
18 regard to the laws governing public contracts or public printing.
 
19 The completed volumes of the session laws, supplements, and
 
20 replacement volumes shall be delivered to the lieutenant governor
 
21 for distribution."]
 
22      SECTION 14.  Section 23G-18, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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 1      ["§23G-18  Sale and distribution.  The session laws,
 
 2 supplements, and replacement volumes shall be sold and
 
 3 distributed by the lieutenant governor at a price fixed by the
 
 4 lieutenant governor.  The money received therefor shall be paid
 
 5 into the state treasury to the credit of the general fund.  The
 
 6 lieutenant governor may furnish the session laws, supplements,
 
 7 and replacement volumes to public officials for official use free
 
 8 of charge.  As used in this chapter, public officials include
 
 9 officials of the state and county governments, of the
 
10 congressional delegation of the State, of the United States
 
11 District Court, District of Hawaii, and of the United States
 
12 Attorney's Office in Hawaii."]
 
13      SECTION 15.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 16.  This Act shall take effect upon its approval.
 
16 
 
17 
 
18                         INTRODUCED BY:___________________________
 

 
HB HMIA 99-247