STAND. COM. REP. NO. 385
Honolulu, Hawaii
, 2001
RE: S.B. No. 706
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committees on Labor and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 706 entitled:
"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"
beg 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 American Public Works Association and the United Public Workers union. 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 Committees find 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.
Although the Managed Competition Committee submitted its report as required under Act 230 to the Legislature in 2000, your Committees believe that the Managed Competition Committee is still needed in order address any concerns that may arise as the managed competition process progresses. Under Act 253, the Office of Collective Bargaining has been given the responsibility of managed competition. The role of the Managed Competition Committee and the Office of Collective Bargaining in creating a managed competition process calls for further discussion in subsequent work on the measure.
Your Committees also believe 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 Committees believe 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.
As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 706 and recommend that it pass Second Reading and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committees on Labor and Transportation, Military Affairs and Government Operations,
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____________________________ CAL KAWAMOTO, Chair |
____________________________ BOB NAKATA, Chair |
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