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NO. 21914 IN THE SUPREME COURT OF THE STATE OF HAWAI#I SUZETTE NAITO; PAMELA SOKEI; MERLE TAKASHIMA; HAWAII GOVERNMENT EMPLOYEES ASSOCIATION, AFSCME, LOCAL 152, AFL-CIO; JUANITO CABREROS; RAYMOND CATANIA; ROZEL EBINGER; VIRGINIA ESTENZO; REBECCA KAPAHU; CORA PASCUAL; and UNITED PUBLIC WORKERS, AFSCME, LOCAL 646, AFL-CIO, Plaintiffs-Appellants vs. LAWRENCE MIIKE, DIRECTOR, IN HIS OFFICIAL CAPACITY AS DIRECTOR, DEPARTMENT OF HEALTH, STATE OF HAWAI#I; STATE OF HAWAI#I, DEPARTMENT OF HEALTH; BENJAMIN CAYETANO, IN HIS OFFICIAL CAPACITY AS GOVERNOR OF THE STATE OF HAWAI#I; HAWAI#I HEALTH SYSTEMS CORPORATION; JOHN DOES 1-10; JANE DOES 1-10; DOE CORPORATIONS 1-10; DOE PARTNERSHIPS 1-10; ROE NON-PROFIT ORGANIZATIONS 1-10; and ROE GOVERNMENTAL ENTITIES 1-10 (97-109), Defendants-Appellees and ARC OF KAUAI, Intervenor-Defendant-Appellee APPEAL FROM THE FIFTH CIRCUIT COURT (CIV. NO. 97-0264) SUMMARY DISPOSITION ORDER (By: Moon, C.J., Levinson, Nakayama, Acoba, and Duffy JJ.) Plaintiffs-Appellants Suzette Naito; Pamela Sokei; Merle Takashima; Hawaii Government Employees Association, AFSCME, Local 152, AFL-CIO; Juanito Cabreros; Raymond Catania; Rozel Ebinger; Virginia Estenzo; Rebecca Kapahu; Cora Pascual; and United Public Workers, AFSCME, Local 646, AFL-CIO [hereinafter collectively "the Plaintiffs"] appeal from the following: (1) the findings of fact, conclusions of law and order filed on June 17, 1998; (2) the judgment filed on July 13, 1998 in favor of Defendant-Appellees Lawrence Miike, Director, in his official

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capacity as Director, Department of Health, State of Hawai#i; Department of Health, State of Hawai#i; Benjamin Cayetano, in his official capacity as Governor of the State of Hawai#i; Hawai#i Health Systems Corporation; unnamed defendant corporations, partnerships, non-profit organizations, and governmental entities [hereinafter collectively "the State"] and Intervenor-DefendantAppellee Association for Retarded Citizens of Kaua#i (ARC); and (3) the September 8, 1998 order clarifying the findings of fact, conclusions of law and order filed June 17, 1998 and denying the Plaintiffs' motion to amend findings of fact, conclusions of law and order filed June 26, 1998 by the Circuit Court of the Fifth Circuit, the Honorable George M. Masuoka presiding. the Plaintiffs contend that: On appeal,

(1) under the "nature of the

services" test as set forth in Konno v. County of Hawaii, 85 Hawai#i 61, 937 P.2d 397 (1997), the State could not privatize positions at Hale Hauoli; (2) an implied exemption from the civil service law of the Hale Hauoli positions under Act 189, is contrary to constitutional and statutory standards; (3) Act 189 did not mandate privatization of the services provided at Hale Hauoli as it was intended to apply only to "phase out" Waimano training school and hospital (Waimano); and (4) private contracts to replace civil servants at Hale Hauoli were contrary to public policy.

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Upon carefully reviewing the record and the briefs submitted, we hold as follows: Act 189 mandated privatization of the services provided by Hale Hauoli for persons with developmental disabilities or mental retardation. The plain language of Act 189 clearly states

that "all programs and services falling under [chapter 333F] shall be provided in the community."

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Hawaii Law