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HRS §46-36

How counties can use managed competition for services

This section lets a county, with the governor's and mayor's approval, compare its own workers with private companies to see who can provide a service better and cheaper. If a private company wins, the county must first try to help displaced workers find other jobs or retrain them before laying anyone off. It also defines what managed competition means.

counties

The statute, as written — Authority of counties to engage in the process of managed competition; established

(a) Subject to the approval of the governor and the respective mayor of the county, the agency designated by the mayor with the responsibility to oversee the managed process for public-private competition for government services shall: (1) Assist the mayor in formulating the county's philosophy for public collective bargaining and for the managed process for public-private competition for government services, including which particular service can be provided more efficiently, effectively, and economically considering all relevant costs; and (2) Coordinate and negotiate the terms and conditions or the managed competition process on behalf of the county with exclusive representatives of affected public employees and private contractors. (b) If a county executes a contract with a private contractor pursuant to the managed competition process authorized under this section, the county may use the layoff provisions of the civil service laws and the respective collective bargaining contracts to release employees displaced from their positions by the managed competition process. Prior to implementing any layoff provision of the civil service laws or a collective bargaining contract, the county shall use its resources for placing, retraining, and providing voluntary severance incentives for displaced employees. Methods that may be used to minimize or avoid the adverse effects of an agency's decision to secure needed services from contractors may include: (1) Coordination with the private service provider awarded the contract under this section to continue a displaced employee's employment as an employee of the contractor; (2) Reassignment to another civil service position the employee is qualified to fill; (3) Retraining to qualify the employee for reassignment; and (4) Severance incentives. (c) As used in this section, "managed competition" means the process established in this section by which the county and a private contractor compete to provide government services.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.