STAND. COM. REP. NO. 2268

Honolulu, Hawaii

RE:    S.B. No. 2435

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Human Services and Public Housing and Intergovernmental and Military Affairs, to which was referred S.B. No. 2435 entitled:

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

beg leave to report as follows:

     The purpose of this measure is to clarify that the exemption from county civil service membership provided to positions or contracts for personal services shall apply to personal service contracts with qualified community rehabilitation programs regardless of cost.

     Your Committees received testimony in support of this measure from the Department of Human Resources Development; The Arc of Kona; The Arc of Hilo; Anuenue Hale, Inc.; and Ka Lima O Maui.  Testimony in opposition was received from the Hawaii Government Employees Association.

      Act 191, Session Laws of Hawaii 2007, enacted a civil service exemption for the counties to enter into contracts with private persons or entities for services lasting no more than one year and at a cost of no more than $750,000.  This measure clarifies Act 191 to specify that the exemption applies to contracts with qualified community rehabilitation programs even though the costs involved may exceed the $750,000 limit.

     Your Committees find that contracting opportunities with qualified community rehabilitation programs provide much needed employment opportunities for Hawaii's under employed or unemployed segment and enables workers with disabilities to become contributing members of the community.

     Your Committees have amended this measure by:

     (1)  Providing the foregoing exemption from county civil service requirements to qualified community rehabilitation programs for services costing no more than $1,000,000;

     (2)  Requiring the Department of Human Resources Development to report annually to the Legislature on expenditures of qualified community rehabilitation programs and related activities; and

     (3)  Making technical, nonsubstantive amendments.

     Your Committees request the Hawaii Government Employees Association to consult with the interested parties and with the Department of Human Resources Development concerning adjusting the amount of the cap on costs from time to time as needed.

     As affirmed by the records of votes of the members of your Committees on Human Services and Public Housing and Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2435, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2435, S.D. 1, and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committees on Human Services and Public Housing and Intergovernmental and Military Affairs,

____________________________ LORRAINE R. INOUYE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair