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Constance R. Kiriu <br /> July 22, 2004 <br /> Page 2 <br /> Answer to Question 1. <br /> The County has the authority under HRS Section 46-80.5 to enact an ordinance <br /> authorizing the creation of special improvement districts. Such districts are for <br /> the purpose of providing and financing supplemental maintenance and security <br /> services and such other improvements, services, and facilities as the council <br /> determines will restore or promote business activity in the special improvement <br /> district. <br /> Under HRS Section 46-80.5(g) any board or association established for the <br /> purpose of carrying out activities within the special improvement district is not <br /> deemed a governmental body, department, agency, or county. Neither is it <br /> deemed to be performing services on behalf of a government department, <br /> agency or county. As it is not a government entity it is not subject to either the <br /> procurement code or civil service laws. HRS Section 103D, the Hawaii Public <br /> Procurement Code, only applies to "governmental bodies." Similarly, civil service <br /> laws only apply to public employees as the purpose of civil service laws is to <br /> foster career service in government. HRS Section 76-1. <br /> Answer To Question No. 2. <br /> The language in Bill 280, Section -18 is sufficient to authorize the board or <br /> association to independently procure goods and services without being subject to <br /> either the State Procurement Code or civil service laws. However, it could be <br /> made stronger by inserting language that reads "Any board or association <br /> established for the purposes of carrying out the management and activities of the <br /> special improvement district shall neither be deemed to be a government <br /> department, agency, or a county, nor to be performing services on behalf of a <br /> government department, agency or county." This is similar to the language of <br /> HRS Section 46-80.5(g). <br /> Additionally, two other changes should be made to this section. The reference in <br /> Section _-18 (b)(1), Section -24(c), and Section -44, to the <br /> department of facilities maintenance should be changed to the Public Works <br /> Department. The reference in item _-18(b)(2) to the department of budget and <br /> <br /> fiscal services should be changed to the Department of Finance. <br /> <br />