STAND. COM. REP. NO. 688

Honolulu, Hawaii

, 2001

RE: S.B. No. 706

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 706 entitled:

"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to extend the life of the Managed Competition Committee and the authorization for governmental agencies to contract the services of private contractors as established under parts III and IV of Act 230, Session Laws of Hawaii 1998 (Act 230).

Testimony in support of the measure was received from the Department of Accounting and General Services, the Mayor and a Councilmember from the County of Hawaii, the United Public Workers, the National Federation of Independent Business, and the General Contractors Association of Hawaii. In its testimony, the Department of Accounting and General Services requested that only the extension of the explicit legislative authority to procure services provided by private contractors that were traditionally and customarily performed by civil service workers, not the extension of the Managed Competition Committee, be extended.

Your Committee finds that among other things, Act 230 established:

(1) A Managed Competition Committee to develop a managed process that enables state and county governments to implement public-private competition for government services through the managed process that determines whether a particular service can be provided more efficiently, effectively, and economically by a public agency or a private enterprise contained in part III of the Act; and

(2) Explicit legislative authorization to contract certain services in order to address the concerns of the State and counties, private providers of public services, and representatives of public and private employees which have been generated in response to the Supreme Court's decision in Konno v. County of Hawaii, 85 Haw. 61, 937 P.2d 397 (1997) in part IV of the Act.

The Managed Competition Committee completed its work and submitted its report as required under Act 230 to the Legislature in 2000.

Your Committee believes that until performance-based budgeting and the process for managed competition are firmly established, the State and counties still need clear legislative authorization to maintain their existing contracts and to contract with private entities to provide goods and to perform public services where appropriate. Accordingly, your Committee believes that part IV should be extended so as to ensure that the State and counties continue to receive clear and necessary authority to perform their missions.

Based on the testimony of the Department of Accounting and General Services, your Committee has amended the measure by deleting the extension of Managed Competition Committee since its work has already been completed.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 706, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 706, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

BRIAN KANNO, Chair