STAND. COM. REP. NO. 535-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2588
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2588 entitled: 

     "A BILL FOR AN ACT RELATING TO AUDIT AND ACCOUNTING,"

begs leave to report as follows:

     The purpose of this bill is to enable the State to pay
vendors on a more timely basis by eliminating the duplicative
pre-audit reviews currently being performed by both the
Comptroller and the executive departments.

     This bill authorizes the Comptroller to delegate the pre-
audit responsibility for proposed payment accounts below $1,000
to the executive departments.  The Comptroller would continue to
pre-audit the larger payments that comprise a significant portion
of state funds being expended.

     The Department of Accounting and General Services, the
Department of Human Services, and the Department of Land and
Natural Resources testified in support of this bill.  The
Department of Commerce and Consumer Affairs supported the intent
of this measure, and the Office of the Lieutenant Governor
offered comments.

     Your Committee has amended this bill by making technical,
nonsubstantive revisions to correct technical drafting errors.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your

 
 
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Committee is in accord with the intent and purpose of H.B. No.
2588, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2588, H.D. 1, and
be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair