SB 425: RELATING TO QUALIFIED COMMUNITY REHABILITATION PROGRAMS.

A BILL FOR AN ACT

RELATING TO QUALIFIED COMMUNITY REHABILITATION PROGRAMS.

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

     SECTION 1.  Section 76-77, Hawaii Revised Statutes, is amended to read as follows:

     "§76-77  Civil service and exemptions.  The civil service to which this part applies comprises all positions in the public service of each county, now existing or hereafter established, and embraces all personal services performed for each county, except the following:

     (1)  Positions in the office of the mayor; provided that the positions shall be included in the classification systems;

     (2)  Positions of officers elected by public vote, positions of heads of departments, and positions of one first deputy or first assistant of heads of departments;

     (3)  Positions of deputy county attorneys, deputy corporation counsel, deputy prosecuting attorneys, and law clerks;

     (4)  Positions of members of any board, commission, or agency;

     (5)  Positions filled by students; positions filled through federally funded programs [which] that provide temporary public service employment such as the federal Comprehensive Employment and Training Act of 1973; and employees engaged in special research or demonstration projects approved by the mayor, for which projects federal funds are available;

     (6)  Positions of district judges, jurors, and witnesses;

     (7)  Positions filled by persons employed by contract where the personnel director has certified that the service is special or unique, is essential to the public interest, and that because of the circumstances surrounding its fulfillment, personnel to perform the service cannot be recruited through normal civil service procedures; provided that no contract pursuant to this paragraph shall be for any period exceeding one year;

     (8)  Positions of a temporary nature needed in the public interest where the need does not exceed ninety days; provided that before any person may be employed to render temporary service pursuant to this paragraph, the director shall certify that the service is of a temporary nature and that recruitment through normal civil service recruitment procedures is not practicable; and provided further that the employment of any person pursuant to this paragraph may be extended for good cause for an additional period not to exceed ninety days upon similar certification by the director;

     (9)  Positions of temporary election clerks in the office of the county clerk employed during election periods;

    (10)  Positions specifically exempted from this part by any other state statutes;

    (11)  Positions of one private secretary for each department head; provided that the positions shall be included in the classification systems;

    (12)  Positions filled by persons employed on a fee, contract, or piecework basis who may lawfully perform their duties concurrently with their private business or profession or other private employment, if any, and whose duties require only a portion of their time, where it is impracticable to ascertain or anticipate the portion of time devoted to the service of the county and that fact is certified by the director;

    (13)  Positions filled by persons with a severe disability who are certified by the state vocational rehabilitation office as able to safely perform the duties of the positions;

    (14)  Positions of the housing and community development office or department of each county; provided that this exemption shall not preclude each county from establishing these positions as civil service positions;

    (15)  The following positions in the office of the prosecuting attorney:  private secretary to the prosecuting attorney, secretary to the first deputy prosecuting attorney, and administrative or executive assistants to the prosecuting attorney; provided that  the positions shall be included in the classification systems; and

    (16)  Positions or contracts for personal services with private persons or entities for services lasting no [more] longer than one year and at a cost of [no] not more than $750,000; provided that the exemption under this paragraph shall apply to contracts for building, custodial, and grounds maintenance services with qualified community rehabilitation programs, as defined in section 103D-1001, lasting for no [more] longer than a year and at a cost of [no] not more than $850,000[.] in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation programs utilized for the personal service.

     The director shall determine the applicability of this section to specific positions and shall determine whether or not positions exempted by paragraphs (7) and (8) shall be included in the classification systems.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent private secretary of a department head who held that position on May 7, 1977."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Civil Service; Exemptions; Contracts; Qualified Community Rehabilitation Programs

Description:

Clarifies that the civil service exemption for personal service contracts for building, custodial, and grounds maintenance services with qualified community rehabilitation programs shall not cost more than $850,000 in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation programs utilized for the personal service.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to QUALIFIED COMMUNITY REHABILITATION PROGRAMS.

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

     SECTION 1.  Section 76-77, Hawaii Revised Statutes, is amended to read as follows:

     "§76-77  Civil service and exemptions.  The civil service to which this part applies comprises all positions in the public service of each county, now existing or hereafter established, and embraces all personal services performed for each county, except the following:

     (1)  Positions in the office of the mayor; provided that the positions shall be included in the classification systems;

     (2)  Positions of officers elected by public vote, positions of heads of departments, and positions of one first deputy or first assistant of heads of departments;

     (3)  Positions of deputy county attorneys, deputy corporation counsel, deputy prosecuting attorneys, and law clerks;

     (4)  Positions of members of any board, commission, or agency;

     (5)  Positions filled by students; positions filled through federally funded programs [which] that provide temporary public service employment such as the federal Comprehensive Employment and Training Act of 1973; and employees engaged in special research or demonstration projects approved by the mayor, for which projects federal funds are available;

     (6)  Positions of district judges, jurors, and witnesses;

     (7)  Positions filled by persons employed by contract where the personnel director has certified that the service is special or unique, is essential to the public interest, and that because of the circumstances surrounding its fulfillment, personnel to perform the service cannot be recruited through normal civil service procedures; provided that no contract pursuant to this paragraph shall be for any period exceeding one year;

     (8)  Positions of a temporary nature needed in the public interest where the need does not exceed ninety days; provided that before any person may be employed to render temporary service pursuant to this paragraph, the director shall certify that the service is of a temporary nature and that recruitment through normal civil service recruitment procedures is not practicable; and provided further that the employment of any person pursuant to this paragraph may be extended for good cause for an additional period not to exceed ninety days upon similar certification by the director;

     (9)  Positions of temporary election clerks in the office of the county clerk employed during election periods;

    (10)  Positions specifically exempted from this part by any other state statutes;

    (11)  Positions of one private secretary for each department head; provided that the positions shall be included in the classification systems;

    (12)  Positions filled by persons employed on a fee, contract, or piecework basis who may lawfully perform their duties concurrently with their private business or profession or other private employment, if any, and whose duties require only a portion of their time, where it is impracticable to ascertain or anticipate the portion of time devoted to the service of the county and that fact is certified by the director;

    (13)  Positions filled by persons with a severe disability who are certified by the state vocational rehabilitation office as able to safely perform the duties of the positions;

    (14)  Positions of the housing and community development office or department of each county; provided that this exemption shall not preclude each county from establishing these positions as civil service positions;

    (15)  The following positions in the office of the prosecuting attorney:  private secretary to the prosecuting attorney, secretary to the first deputy prosecuting attorney, and administrative or executive assistants to the prosecuting attorney; provided that  the positions shall be included in the classification systems; and

    (16)  Positions or contracts for personal services with private persons or entities for services lasting no [more] longer than one year and at a cost of [no] not more than $750,000; provided that the exemption under this paragraph shall apply to contracts for building, custodial, and grounds maintenance services with qualified community rehabilitation programs, as defined in section 103D-1001, lasting for no [more] longer than a year and at a cost of [no] not more than $850,000 in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation programs utilized for the personal service.

     The director shall determine the applicability of this section to specific positions and shall determine whether or not positions exempted by paragraphs (7) and (8) shall be included in the classification systems.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent private secretary of a department head who held that position on May 7, 1977."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Civil Service; Exemptions; Contracts; Qualified Community Rehabilitation Programs

Description:

Clarifies that the civil service exemption for personal service contracts for building, custodial, and grounds maintenance services with qualified community rehabilitation programs shall not cost more than $850,000 in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation program utilized for the personal service.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 354

Honolulu, Hawaii

RE:    S.B. No. 425

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 425 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to clarify that the civil service exemption for personal service contracts for building, custodial, and grounds maintenance services with qualified community rehabilitation programs shall not cost more than $850,000 in the aggregate per private person or entity, regardless of the number of contracts or qualified community rehabilitation programs utilized for the personal service.

     Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaii State AFL-CIO; and United Public Workers, AFSCME Local 646, AFL-CIO.

     Your Committee finds that the intent behind establishing a limited exemption allowing private contracts for certain services originally intended as civil service with qualified community rehabilitation programs has been abused.  Rather than applying the $850,000 price cap in the aggregate, as was intended, state departments are applying the cap per contract or program, facilitating the excessive privatization and outsourcing of these services.  In addition to taking jobs that should go to state or county employees, this overreliance on outsourcing also disincentivizes state departments from adequately staffing the civil workforce.  To restore the balance between employment opportunities for individuals with disabilities and those for civil servants, this measure clarifies that the price cap must be applied in the aggregate for the personal service being contracted.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 425, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 425, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,