Report Title:

Privatization; Managed Competition

Description:

Repeals part II of Act 90, Session Laws of Hawaii 2001, relating to privatization. (SD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

391

TWENTY-SECOND LEGISLATURE, 2003

H.D. 2

STATE OF HAWAII

S.D. 2


 

A BILL FOR AN ACT

RELATING TO COLLECTIVE BARGAINING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. In Act 230, Session Laws of Hawaii 1998, section 6, "managed competition" was adopted as a public policy to enable state and county governments to implement public-private competition for government services through a process which "determines whether a particular service can be provided more efficiently, effectively, and economically by a public agency or a private enterprise." A committee which was created to examine the appropriate means of implementation submitted its report and recommendations to the governor and legislature in 1999 and 2000.

In Act 253, Session Laws of Hawaii 2000, section 104, the office of collective bargaining was redesignated the "office of collective bargaining and managed competition" and delegated authority to implement the managed competition process through the established process of collective bargaining under chapter 89, Hawaii Revised Statutes. In Act 90, Session Laws of Hawaii 2001, section 3, each of the counties were granted comparable authority and powers to "coordinate and negotiate the terms and conditions of the managed competition process" on behalf of the counties with exclusive representatives of affected public employees.

Since the 2001 regular session, the people of Hawaii have elected a new governor who promised not to lay off public employees and who reaffirmed a commitment to a process of joint decision making to determine their wages, hours, and terms and conditions of employment. The legislature finds that the intent behind managed competition was succinctly stated in relevant portions of Act 230, Session Laws of Hawaii 1998, as follows:

"The managed process shall consider all relevant costs, identify the types of contracts which may be exempt from the managed process, establish protections for the affected state and county employees, and ensure that civil service laws, merit principles, and collective bargaining laws are not violated."

In accordance with the foregoing, the legislature finds that part II of Act 90, Session Laws of Hawaii 2001, which preempts chapters 46, 76, 78, 89, and 89A, Hawaii Revised Statutes, is inconsistent with and contradictory to public policies favoring the managed competition process as originally enacted in Act 230, Session Laws of Hawaii 1998, and implemented in both Act 253, Session Laws of Hawaii 2000, and the remaining provisions of Act 90, Session Laws of Hawaii 2001. The legislature further believes that part II of Act 90, Session Laws of Hawaii 2001, is an unconstitutional infringement of the right of public employees to engage in collective bargaining as recently interpreted by the Hawaii supreme court. AFSCME Local 646, AFL—CIO v. Yogi, 101 Hawaii 46, 62 P.3d 189 (2003).

The purpose of this Act is to repeal part II of Act 90, Session Laws of Hawaii 2001.

SECTION 2. Part II of Act 90, Session Laws of Hawaii 2001, is repealed.

SECTION 3. This Act shall take effect upon its approval.