STAND. COM. REP. NO. 2953

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2409
                                        H.D. 1
                                        S.D. 1



Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred H.B. No. 2409, H.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES, INFORMATION
     AND COMMUNICATION SERVICES DIVISION,"

begs leave to report as follows:

     The purpose of this measure is to address a current budget
shortfall in the Information and Communication Services Division
caused by an over-collection of federal reimbursements in fiscal
years 1996-1997 and 1997-1998.

     Testimony in support of the measure was received from the
Department of Accounting and General Services (DAGS).

     Your Committee finds that the over-collection prompted the
federal government to withhold current payments on federally
funded programs.  This withholding in addition to the Division's
increased operating expenses has caused the Division to fall
behind in its current budget by $800,000.

     This measure provides the funds necessary to allow the
Division to meet its budgetary obligations during the current
fiscal year.  

     Your Committee amended the measure to require DAGS to pursue
action against the consultant who made the over-collection and
hold it accountable for the resulting loss, and to report to the

 
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                                   STAND. COM. REP. NO. 2953
                                   Page 2


Legislature no later than twenty days before the regular session
of 2001, on the action taken.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2409, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2409, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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