Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Labor and Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs, to which was referred H.B. No. 2329 entitled:

beg leave to report as follows:

The purpose of this measure is to clarify Act 90, Session Laws of Hawaii 2001, which authorized the Governor and executives of other jurisdictions to use the managed competition process to provide government services more efficiently by:

The Hawaii Government Employees Association commented on the measure.

Your Committees find that Act 90, Session Laws of Hawaii 2001 (Act 90), authorized the Governor and executives of other jurisdictions to use a managed competition process as a management tool to provide government services more efficiently. However, Act 90 neglected to define the term "managed competition".

The measure defines this term to mean the process by which the county and a private contractor compete to provide government services.

The measure also updates section 89A-2, Hawaii Revised Statutes, by correcting the reference to the Office of Collective Bargaining to its new name, the Office of Collective Bargaining and Managed Competition.

Your Committees believe that the measure will enable the State and the counties to implement Act 90 to the overall benefit of the citizens of the State.

As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2329, and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.