State Govt; Restructuring

Establishes a joint legislative task force on government
restructuring to assist in reducing the size and bureaucracy of
state government and increasing government efficiency and
effectiveness.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that there is an immediate
 2 need to streamline and improve the delivery of government
 3 services by restructuring state government.
 4      Studies to improve the responsiveness and efficiency of
 5 state government have already been conducted, ranging from
 6 reports in 1974 and 1977 from the commission on organization of
 7 government ("CORE"), to the 1993 report of the interim commission
 8 on government redesign, which supported the need to redesign the
 9 delivery of state government services.
10      Recognizing the need to improve the delivery of government
11 services and reduce government bureaucracy, the legislature in
12 1996 passed Act 297, Session Laws of Hawaii 1996 to address the
13 consolidation and streamlining of government departments and
14 services.  That Act acknowledged that although the current state
15 administration had taken certain actions to respond to the
16 State's fiscal crisis and restructure state government agencies
17 for more efficient and effective delivery of government services,
18 the task of reorganizing state government falls jointly on the
19 legislature and the governor:  the legislature to set policies

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 1 and the governor to develop and implement an action plan to
 2 implement the policies.
 3      In response to Act 297, the governor issued an interim
 4 report to the legislature entitled "Restructuring State
 5 Government Services" (December 1996), which made a number of
 6 findings and recommendations to streamline government.  However,
 7 the legislature finds that these efforts, while important, do not
 8 go far enough, and that the circumstances that prompted the
 9 enactment of Act 297 still remain.
10      There continues to be a need to resolve the State's economic
11 stagnation, as well as a need for government agencies to adapt to
12 the ever-changing needs and demands of the public they serve.
13 State agencies must revise and retool their concepts of public
14 service in order to remain responsive and efficient.  There
15 continues to be not only duplication of effort among state
16 agencies but also encroachment into the functions of the private
17 sector.  Many state government services, although well-meaning,
18 have placed increased strain on the State's weak fiscal
19 situation.  In order to carry out the most essential public
20 services, the State must make the best use of every resource,
21 every tax dollar, and every personnel position.
22      The legislature further finds that the State's continuing
23 poor economy, weak revenue projections, and budget gaps between

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 1 expected expenses and income requires a determination as to the
 2 best means to increase government productivity and realize
 3 additional cost savings.  The legislature finds that while the
 4 State's economic situation is weak, it nonetheless presents an
 5 opportunity to enhance the productivity of state government and
 6 to fill the budget gap with the resultant savings.
 7      Accordingly, the purpose of this Act is to accelerate the
 8 restructuring of state government by:
 9      (1)  Creating a joint legislative task force on government
10           restructuring;
11      (2)  Stating appropriate policies for restructuring; and
12      (3)  Providing for a comprehensive implementation strategy
13           to be utilized in the review of the departments and
14           offices of the executive branch of state government.
15      The legislature finds that these measures will help to
16 enhance productivity and promote economic growth in Hawaii
17 through the redirection of government first to a commitment to
18 education of our children and more efficient delivery of services
19 to stimulate economic growth of small businesses and reshaping
20 economic development programs.
21      SECTION 2.  Joint legislative task force on government
22 restructuring; establishment; membership; appointment;
23 compensation; duties.  (a)  There is established a joint

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 1 legislative task force on government restructuring.  The task
 2 force shall consist of six members from each house appointed by
 3 the presiding office of each house.
 4      (b)  In carrying out its duties under this section, the task
 5 force may request staff assistance from the department of budget
 6 and finance, department of business, economic development, and
 7 tourism, and other appropriate state agencies.
 8      (c)  The members of the task force shall select the
 9 chairperson and shall be reimbursed for expenses, including
10 travel expenses, necessary for the performance of their duties.
11      (d)  The task force shall solicit input on and study the
12 role of each of the departments and agencies in the executive
13 branch of state government, and make recommendations to the
14 governor on restructuring state government and reducing
15 government bureaucracy, consolidating agencies, and streamlining
16 procedures as necessary for the efficient functioning of state
17 government based on the following policies and goals:
18      (1)  The creation of a clear sense of mission for
19           restructuring state government;
20      (2)  The avoidance of making changes to reorganize state
21           government for the sake of change only;
22      (3)  The development of government which provides "user-
23           friendly" services in and out of state government;

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 1      (4)  The adoption of "best practices" of management and
 2           operations;
 3      (5)  The search for economies of scale;
 4      (6)  The elimination of duplicative or outmoded functions
 5           and activities;
 6      (7)  The enhancement of productivity by consolidating
 7           functions;
 8      (8)  The elimination of unnecessary regulation;
 9      (9)  The redesigning of processes to increase efficiency,
10           cut costs, and reduce public inconvenience;
11     (10)  The exposure of government operations to competition;
12     (11)  The guarantee of effective, efficient government
13           operations; and
14     (12)  The realization of significant long-term savings.
15      (e)  In developing an action plan under subsection (d), the
16 task force shall make recommendations to achieve the following:
17      (1)  Consolidate or restructure redundant state government
18           services, programs, and operations; 
19      (2)  Improve the departmental effectiveness with which
20           general fund dollars are spent;
21      (3)  Reduce the ratio of management, administrative,
22           clerical, and supervisory personnel to the front-line
23           personnel;

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 1      (4)  Integrate the effective use of technology;
 2      (5)  Achieve the most effective delivery of services to
 3           Hawaii citizens; and
 4      (6)  Any other areas that the task force deems relevant to
 5           enhance productivity in Hawaii state government.
 6 The task force shall develop criteria or benchmarks as necessary
 7 to assist in the development of productivity plans for state
 8 departments.
 9      SECTION 3.  Report.  The task force shall make its
10 preliminary recommendations to the governor no later than twenty
11 days before the convening of the regular session of 2000, and
12 shall submit its final recommendations no later than twenty days
13 before the convening of the regular session of 2001.
14      SECTION 4.  There is appropriated out of the general
15 revenues of the State of Hawaii the sum of $      , or so much
16 thereof as may be necessary for fiscal year 1999-2000, for the
17 purposes of this Act.  The sum appropriated shall be expended by
18 the speaker of the house of representatives.
19      SECTION 5.  There is appropriated out of the general
20 revenues of the State of Hawaii the sum of $      , or so much
21 thereof as may be necessary for fiscal year 1999-2000, for the
22 purposes of this Act.  The sum appropriated shall be expended by
23 the president of the senate.

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 1      SECTION 6.  The task force on government restructuring shall
 2 cease to operate after the adjournment sine die of the 2001
 3 regular session of the legislature.
 4      SECTION 7.  This Act shall take effect upon its approval;
 5 provided that sections 4 and 5 shall take effect on July 1, 1999.