Hawaii-2015-HB681-Introduced

SECTION 1. The purpose of this Act is to repeal and amend sections of part VIII of Act 51, Session Laws of Hawaii 2004, and transfer certain functions of the department of education to the department of accounting and general services and the department of human resources development, respectively.

SECTION 2. Section 36-35, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a) and (b) to read:

"(a) There is created in the state general fund under [~~EDN 400 (school support)~~] AGS 807 (school r&m, neighbor island districts) the state educational facilities repair and maintenance account, into which shall be deposited legislative appropriations to the account designated for use solely to eliminate the backlog of school repair and maintenance projects, including the repair or replacement of fixtures, furnishings, and equipment, existing on June 30, 2000. Expenditures from the account shall be subject to sections 37-31 and 37-33 to 37-40. Based on the prioritization approved by the department of education, appropriations or authorizations from the account shall be expended by the [~~superintendent of education.~~] comptroller.

(b) The department of education, with the assistance of the department of accounting and general services, shall review the existing condition of school facilities and establish specific vision plans for each school complex based on current repair and maintenance requirements and overall repair and maintenance priorities."

2. By amending subsections (e), (f), and (g) to read:

"(e) The expenditure of funds for any project with an estimated total cost of less than $100,000 shall be exempt from section 464-4; provided that:

(1) The [~~superintendent of education~~] comptroller shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices;

(2) Insofar as is practical, and based on specifications developed, adequate and reasonable competition of no fewer than three proposals shall be solicited for each project, based on rules adopted by the [~~superintendent of education;~~] comptroller;

(3) Considering all factors, including quality, warranty, and delivery, the award shall be made to the vendor with the most advantageous proposal;

(4) The procurement requirements shall not be artificially divided or parceled so as to avoid competitive bidding or competitive proposals; and

(5) Formal design for projects shall be done when there is a clear need to preserve structural integrity, health and safety, or to clearly communicate construction requirements.

For all projects, the [~~superintendent of education~~] comptroller shall develop a strategy for the efficient and cost-effective use of government and private-sector workforces and consider increased flexibility through public-private partnering, design-build options, cost plus, job order contracts, performance-based contracts, request for proposals, and any other means to improve communications and accelerate repairs while preserving the quality of the repairs.

(f) The [~~superintendent of education~~] comptroller shall ensure that all repair and maintenance projects achieve maximum cost-efficiency by emphasizing functional or performance criteria, uniformity of design, and commonality of products, and by avoiding unique or custom requirements that increase costs. The [~~superintendent of education~~] comptroller shall develop project specifications based on generic specifications or prescriptive specifications using standard commercial products. Prescriptive specifications may include a qualified product list.

For the purposes of this subsection:

"Generic specification" means a technical specification that is written in a clear, unambiguous, and nonrestrictive manner establishing:

(1) Design, performance, or functional requirements to identify the work to be performed; and

(2) Material standards to be used on a project.

"Prescriptive specification" means a technical specification:

(1) Establishing that the required work to be performed is written in a clear, unambiguous, and nonrestrictive manner; and

(2) Listing manufacturers or products that are acceptable for use on the project.

"Standard commercial product" means a product or material that in the normal course of business is customarily maintained in stock by, or readily available for marketing from a manufacturer, distributor, or dealer.

This subsection shall not apply to any school facility designated a historic property pursuant to section 6E-5.5.

(g) The [~~superintendent of education~~] comptroller shall submit an annual report to the legislature, which shall include a financial statement of the account and the status of repair and maintenance projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session. Expenditures for repair and maintenance projects undertaken pursuant to this section shall be posted electronically on the Internet by the department of [~~education~~] accounting and general services within thirty days of each project's completion."

SECTION 3. Section 36-36, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) There is created in the state general fund under [~~EDN 400 (school support)~~] AGS 807 (school r&m, neighbor island districts) the school physical plant operations and maintenance account, into which shall be deposited all legislative appropriations to the account.

The moneys in the account shall be used solely for school repairs and preventive maintenance projects scheduled after June 30, 2001. Expenditures from the account shall be subject to sections 37-31 and 37-33 to 37-40. Based on the prioritization approved by the department of education, appropriations or authorizations from the account shall be expended by the [~~superintendent of education.~~] comptroller."

2. By amending subsections (d) and (e) to read:

"(d) The expenditure of funds made under this Act for any project with an estimated total cost of less than $100,000 shall be exempt from section 464-4; provided that:

(2) Insofar as is practical, and based on specifications developed, adequate and reasonable competition of no fewer than three quotations shall be solicited for each project based on rules adopted by the [~~superintendent of education;~~] comptroller;

(3) Considering all factors, including quality, warranty, and delivery, the award shall be made to the vendor with the most advantageous quotation;

(4) The procurement requirements shall not be artificially divided or parceled so as to avoid competitive bidding or competitive proposals; and

(5) Formal design for projects shall be done when there is a clear need to preserve structural integrity, health and safety, or to clearly communicate construction requirements.

(e) The department of accounting and general services shall annually post on its website information related to a financial statement of the account and the status of school repair and preventive maintenance projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session. The department of [~~education~~] accounting and general services shall also post the following information on its website and update the information quarterly:

(1) Expenditures for school repair and preventive maintenance projects undertaken pursuant to this section, shall be posted within thirty days of each project's completion; and

(2) A list of each school's repair and maintenance needs to be undertaken."

SECTION 4. Section 37-41.5, Hawaii Revised Statutes, is amended to read as follows:

"§37-41.5 Department of education; carryover of funds. (a) The department of education may retain up to five per cent of any appropriation, except for appropriations to fund financing agreements entered into in accordance with chapter 37D, for the school based budgeting program EDN 100 and for the special education and student support services program EDN 150 at the close of a fiscal year and the funds retained shall not lapse until June 30 of the first fiscal year of the next fiscal biennium. The department of education shall submit:

(1) A report to the director of finance ninety days after the close of each fiscal year, which shall be prepared in the form prescribed by the director of finance and shall identify the total amount of funds that will carry over to the next fiscal year; and

(2) A copy of this report to the legislature, as well as a report identifying the carryover of funds on a school-by-school basis, at least twenty days prior to the convening of the next regular session of the legislature.

(b) [~~Appropriations~~] Any appropriation retained in accordance with this section shall be used exclusively for the school based budgeting program EDN 100 and the special education and student support services program EDN 150, and of those appropriations allocated to the schools, moneys shall remain within the budget of the school to which they were originally allocated; provided that the retention of an appropriation shall not be used by the department as a basis for reducing a school's future budget requirements."

SECTION 5. Section 37-74, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) No appropriation transfers or changes between programs or agencies shall be made without legislative authorization; provided that:

(1) Authorized transfers or changes, when made, shall be reported to the legislature;

(2) Except with respect to appropriations to fund financing agreements under chapter 37D, the University of Hawaii shall have the flexibility to transfer appropriated funds and positions for the operating cost category among programs, among cost elements in a program, and between quarters, as applicable; [except with respect to appropriations to fund financing agreements under chapter 37D, the department of education shall have the flexibility to transfer appropriated funds and positions for the operating cost category among programs and among cost elements in a program, and between quarters, as applicable;] and the Hawaii health systems corporation and its regional system boards shall have the flexibility to transfer special fund appropriations among regional system hospital facilities as applicable and as mutually agreed to by the corporation and the respective regional system board; provided that the Hawaii health systems corporation and the regional system boards shall maintain the integrity and services of each individual regional system and shall not transfer appropriations out of any regional system that would result in a reduction of services offered by the regional system, with due regard for statutory requirements, changing conditions, the needs of the programs, and the effective utilization of resources; and

(3) The university [~~and the department of education~~] shall account for each transfer implemented under this subsection in quarterly reports to the governor and annual reports at the end of each fiscal year to the legislature and the governor, which shall be prepared in the form and manner prescribed by the governor and shall include information on the sources and uses of the transfer."

SECTION 6. Act 51, Session Laws of Hawaii 2004, is amended by repealing section 44.

["SECTION 44. All the rights, powers, functions, duties, and resources, excluding positions unless transferred under the Supplementary Appropriations Act of 2004, of the department of accounting and general services relating to school physical plant operations and maintenance, including moneys in:

~~(1)~~ ~~The state educational facilities repair and maintenance account; and~~

~~(2)~~ ~~The school physical plant operations and maintenance account;~~

~~are transferred to the department of education effective July 1, 2004.~~"]

SECTION 7. Act 51, Session Laws of Hawaii 2004, is amended by repealing section 45.

["SECTION 45. All the rights, powers, functions, duties, and personnel relating to the Hawaii 3R's school repair and maintenance fund, are transferred to the department of education effective July 1, 2004."]

SECTION 8. Act 51, Session Laws of Hawaii 2004, as amended by Act 61, Session Laws of Hawaii 2012, is amended by repealing section 46.

["~~SECTION 46. (a) All the rights, powers, functions, duties, and resources of:~~

~~(1)~~ ~~The department of accounting and general services relating to capital improvement programs, including the:~~

~~(A)~~ Expending of capital improvement funds for the acquisition and development of land, the design and construction of new facilities, and the making of renovations or additions to existing facilities, including moneys in the state educational facilities improvement special fund; and

~~(B)~~ ~~Buying~~, purchasing, renting, leasing, or otherwise acquiring of any good, service, or construction, including the description of requirements, selection and solicitation of sources, preparation and awarding of contracts, payment of vendors, and all other phases of contract administration;

~~(2)~~ ~~The~~ ~~department of accounting and general services relating to repair and maintenance functions not transferred to the department of education under section 44 of this Act; and~~

~~(3)~~ ~~The~~ ~~department of human resources development relating to the:~~

~~(A)~~ Operation of a centralized human resources system that encompasses the classes of work performed by department of education employees, and that integrates payroll, records, transactions, leaves, and reports; and

~~(B)~~ ~~Recruitment, certification, examination, management, classification, and compensation of department of education employees, including labor relations;~~

~~are transferred to the department of education effective July 1, 2005, subject to repeal by subsequent legislation.~~

(b) All moneys budgeted in support of each position to be transferred to the department of education, including moneys for direct and indirect employee benefits, are transferred to the department of education effective July 1, 2005, subject to repeal by subsequent legislation.

~~(c) This section shall not apply to the Hawaii state public library system and its employees.~~"]

SECTION 9. Act 51, Session Laws of Hawaii 2004, as amended by Act 225, Session Laws of Hawaii 2006 and Act 99, Session Laws of 2007, is amended by amending section 48 to read as follows:

"SECTION 48. All resources, appropriations, records, equipment, databases, software, programming, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by [~~the department of accounting and general services and~~] the department of health relating to the functions transferred to the department of education shall be transferred with the functions to which they relate."

SECTION 10. Act 51, Session Laws of Hawaii 2004, is amended by repealing section 49.

["SECTION 49. No later than July 1, 2005, the board of education shall adopt a single school calendar for all public schools beginning with the 2006-2007 school year, provided that this section shall not apply to multi-track schools, new century charter schools, and new century conversion charter schools."]

SECTION 11. All the rights, powers, functions, duties, and resources of the department of education relating to school physical plant operations and maintenance, including moneys in:

(1) The state educational facilities repair and maintenance account; and

(2) The school physical plant operations and maintenance account;

are transferred to the department of accounting and general services effective July 1, 2015.

SECTION 12. All the rights, powers, functions, duties, and personnel relating to the Hawaii 3R's school repair and maintenance fund, are transferred to the department of accounting and general services effective July 1, 2015.

SECTION 13. (a) All the rights, powers, functions, duties, and resources of the department of education relating to capital improvement programs, including the:

(1) Expending of capital improvement funds for the acquisition and development of land, the design and construction of new facilities, and the making of renovations or additions to existing facilities, including moneys in the state educational facilities improvement special fund; and

(2) Buying, purchasing, renting, leasing, or otherwise acquiring of any good, service, or construction, including the description of requirements, selection and solicitation of sources, preparation and awarding of contracts, payment of vendors, and all other phases of contract administration;

are transferred to the department of accounting and general services effective July 1, 2015.

(b) All the rights, powers, functions, duties, and resources of the department of education relating to repair and maintenance functions not transferred to the department of accounting and general services under section 13 of this Act are transferred to the department of accounting and general services effective July 1, 2015.

(c) All moneys budgeted in support of each position to be transferred to the department of accounting and general services, including moneys for direct and indirect employee benefits, are transferred to the department of accounting and general services effective July 1, 2015.

SECTION 14. (a) All the rights, powers, functions, duties, and resources of the department of education relating to the:

(1) Operation of a centralized human resources system that encompasses the classes of work performed by department of education employees, and that integrates payroll, records, transactions, leaves, and reports; and

(2) Recruitment, certification, examination, management, classification, and compensation of department of education employees, including labor relations;

are transferred to the department of human resources development effective July 1, 2015.

(b) All moneys budgeted in support of each position to be transferred to the department of human resources development, including moneys for direct and indirect employee benefits, are transferred to the department of human resources development effective July 1, 2015.

SECTION 15. Effective July 1, 2015, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of education relating to the functions transferred to the department of accounting and general services and the department of human services development, respectively, shall be transferred with the functions to which they relate.

SECTION 16. Effective July 1, 2015, all employees who occupy civil service positions and whose functions are transferred to the department of accounting and general services and the department of human resources, respectively, by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The comptroller and the director of human resources development, respectively, may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 18. This Act shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	681
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII