STAND. COM. REP. NO.  518-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2272

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2272 entitled:

"A BILL FOR AN ACT RELATING TO QUALIFIED COMMUNITY REHABILITATION PROGRAMS,"

begs leave to report as follows:

     The purpose of this bill is to assist programs that employ persons with disabilities by providing that the exemption from the civil service law that applies to county contracts lasting not more than a year and costing not more than $750,000 shall apply to contracts with qualified community rehabilitation programs regardless of the amount of the contract.

     The Department of Human Resources Development, Ka Lima O Maui, the ARC of Kona dbs Kona Krafts, Anuenue Hale, Inc., and the Arc of Hilo testified in support of this bill.  The Hawaii Government Employees Association testified in opposition to this measure.

     Qualified community rehabilitation programs enable workers with disabilities to become contributing members of Hawaii's communities and provide much needed employment opportunities to the most underemployed and unemployed segment of Hawaii's population.

     Your Committee finds that by using these organizations to provide county services, the counties can provide necessary duties and services to the public.  However, contracts with these organizations are often in excess of the $750,000 cost restriction, which makes the employment of personnel under these contracts subject to Hawaii's civil service requirements.

     As these qualified community rehabilitation programs represent a very small and limited number of agencies in Hawaii, providing them with an exemption from the $750,000 cost limit on contracts exempted from Hawaii's civil service requirements seems reasonable.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2059, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2272, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2272, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair