STAND. COM. REP. NO. 3189
RE: H.B. No. 2368
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Your Committees on Housing and Labor, to which was referred H.B. No. 2368, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SERVICES PERFORMED BY CIVIL SERVICE EMPLOYEES,"
beg leave to report as follows:
The purpose and intent of this measure is to appropriate funds for permanent civil service positions and equipment for the Hawaii Public Housing Authority to provide services historically and customarily performed by civil service employees in connection with refuse collection.
Your Committees received testimony in support of this measure from the Department of Human Resources Development; Hawaii Public Housing Authority; and United Public Workers, AFSCME Local 646, AFL-CIO. Your Committees received comments on this measure from the Grassroot Institute of Hawaii.
Your Committees find that in 1997, the Hawaii Supreme Court ruled in Konno v. County of Hawaii that the County of Hawai‘i violated civil service laws and merit principles when the county hired private contractors to perform landfill operations work. The court ruled that state civil service laws allowed only civil service employees to perform work historically and customarily done by civil service employees. As a result of the repeal of part II of Act 90, Session Laws of Hawaii 2001, which had allowed the State to contract for services historically and customarily performed by civil service employees if equivalent or better services could be provided at lower cost, an agreement was reached between the United Public Workers and the State. This agreement reflected the State's commitment to comply with the Konno decision and recognized the State's duty to provide services to the public.
However, your Committees further find that the State does not have a sufficient number of civil service positions and employees to perform services historically and customarily performed by United Public Workers-type employees, and state agencies have resorted to contracting for these services despite the Konno decision. It is estimated that the State will need an additional 598 permanent positions and approximately $75,571,516 to fill those positions and purchase associated equipment with general and non-general funds to provide necessary services to the public through civil service employees rather than through private contractors. Accordingly, this measure is an effort to address this shortfall by appropriating funds for permanent civil service positions and equipment in connection with refuse collection for the Hawaii Public Housing Authority.
Your Committees note that the 598 permanent positions identified only includes United Public Workers-type employees and does not account for a statewide total. Your Committees further note that the State lacks a strategic plan for transitioning all contracted employees who perform work historically and customarily done by civil service employees to civil service positions. Without a strategic plan, your Committees have concerns regarding the availability of state financial resources to transition all contracted employees to civil service employees in order to comply with Konno.
Accordingly, your Committees have amended this measure by:
(1) Requiring the Department of Human Resources Development to develop a multi-year strategic plan to transition contracted positions that are historically and customarily performed by civil service employees to civil service positions in order to comply with the decision under Konno v. County of Hawaii and submit a report to the Legislature prior to the Regular Session of 2019;
(2) Requiring the Hawaii Public Housing Authority to fill all twenty-seven permanent civil service positions and purchase the necessary equipment in connection with refuse collection by July 1, 2020; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Housing and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2368, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2368, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Housing and Labor,
JILL N. TOKUDA, Chair
WILL ESPERO, Chair