STAND

STAND. COM. REP. NO. 1658

Honolulu, Hawaii

, 2005

RE: S.C.R. No. 225

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Labor, to which was referred S.C.R. No. 225 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A FOLLOW-UP AUDIT OF THE "MANAGEMENT AUDIT OF THE HIGHWAYS DIVISION OF THE DEPARTMENT OF TRANSPORTATION" AND OF THE DEPARTMENT'S GENERAL PRACTICE OF PLACING STAFF ON PROLONGED ADMINISTRATIVE ASSIGNMENTS WITHOUT REVISING THEIR JOB RESPONSIBILITIES, IN ORDER TO INFORMALLY INSTITUTE A MAJOR REORGANIZATION NOT REFLECTED IN THE WRITTEN POSITION DESCRIPTIONS, ORGANIZATION CHARTS, AND FUNCTIONAL STATEMENTS,"

beg leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a follow-up audit of the "Management Audit of the Highways Division of the Department of Transportation" and of the Department's general practice of placing staff on prolonged administrative assignments without revising their job responsibilities, in order to informally institute a major reorganization not reflected in the written position descriptions, organization charts, and functional statements.

Your Committees received testimony in support of this measure from the Hawaii Government Employees Association. Testimony in opposition was received from the Department of Transportation (DOT).

Auditor Report No. 00-09, "Management Audit of the Highways Division of the Department of Transportation" found that:

(1) The division's organizational structure was fragmented and inefficient;

(2) The director ignored administrative directives for effecting organizational change and the Governor's order to increase the division's span of supervisory control; and

(3) The division has placed staff on administrative assignments, a term contrived by the division, to circumvent established rules and executive orders, so consequently, functions of newly created positions parallel existing organizational units rather than displace them and supervisors continue to occupy their positions with no one to supervise.

In addition, in March 2004, the Director of Transportation effectuated a transition to a fourth Division, named the Central Planning Office, without adopting a clear written description of proposed changes to the DOT's organization, functions, staffing, chain-of-command, and job responsibilities.

Your Committees want to ensure that the problems raised in the Auditor's report have been rectified, and the personnel operations in the DOT conform to applicable personnel rules. To aid the Committees in understanding the operations of the central planning office, your Committee chairs request the DOT to provide a written explanation of the impact of the reorganization upon the positions referenced in this measure as well as a description of the operations of the central planning office.

Your Committees urge the DOT to communicate more openly, frequently, and candidly with its employees about proposed changes that would affect them.

Your Committees have amended this measure to add the airports and harbors divisions to the audit.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Labor that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 225, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 225, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Transportation and Government Operations and Labor,

____________________________ BRIAN KANNO, Chair		____________________________ LORRAINE R. INOUYE, Chair