STAND. COM. REP. NO. 709

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 747
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 747 entitled: 

     "A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

begs leave to report as follows:

     The purpose of this bill is to require the three executive
departments selected pursuant to section 4 of Act 230, Session
Laws of Hawaii (SLH) 1998, to begin the development of outcome
measures to facilitate the transformation of the State's
accounting and budgeting systems to a performance-based budgeting
system.

     The National Federation of Independent Business and Common
Cause Hawaii testified in support of the bill.  The Department of
Budget and Finance and the Performance Budgeting Committee
submitted comments on the bill.

     Your Committee finds that the task of transforming the
current budget practices and fitting them into a performance-
based system will require a great deal of work and careful
consideration by the three executive departments, as well as the
Performance Budgeting Committee.  Your Committee further finds
that both extra time and additional resources are necessary to
properly accomplish all of the tasks.


 
 
 
 
 
                                 STAND. COM. REP. NO. 709
                                 Page 2

 
     Accordingly, your Committee has amended this bill by:

     (1)  Adding an appropriation in the amount of $1 for the
          development of outcome measures that will facilitate
          the transformation of the State's accounting system and
          the budgeting system to the performance-based budgeting
          system as described in part II of Act 230, Session Laws
          of Hawaii (SLH) 1998;

     (2)  Providing that the appropriation is to be expended by
          the Department of Budget and Finance;

     (3)  Amending the definition of "outcome measures";

     (4)  Amending the timetables to conform to Act 230, SLH
          1998, for the development of outcome measures and the
          submission of annual reports; and

     (5)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 747, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 747, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair