STAND. COM. REP. NO. 896-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2838
                                     S.D. 1
                                     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 Economic Development and Business
Concerns, to which was referred S.B. No. 2838, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE STATE INTERNET PORTAL,"

begs leave to report as follows:

     The purpose of this bill is:

     (1)  To establish an oversight committee to be known as the
          Access Hawaii Committee (AHC) to review and approve the
          development and operation of an internet portal for
          electronic services;

     (2)  To authorize the setting of charges for value added
          electronic services that will be collected by the
          Portal Manager; and 

     (3)  To assist the State Public Library System (Library
          System) in providing access to the internet portal. 

     The Department of Commerce and Consumer Affairs, the
Department of Accounting and General Services, the Hawaii State
Public Library System, the High Technology Development
Corporation, and a concerned citizen submitted testimony in
support of the bill.  The Judiciary submitted testimony
supporting the intent of the bill with the request that the AHC
include a Judiciary representative.  The Governor's Special
Advisor on Technology Development (Governor's SATD) and the
Office of Information Practices (OIP) submitted testimony in
support of the bill, which included proposed amendments to the
bill.
 
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     Your Committee notes that a similar bill, H.B. No. 2497 H.D.
1, passed the House earlier this session after public hearings
before your Committees on Economic Development and Business
Concerns, and Finance.

     After careful consideration, your Committee has amended this
bill by conforming its substance to that of H.B. No. 2497 H.D. 1,
and by adding the amendments suggested by the Governor's SATD and
the OIP.  Specifically, this measure has been amended by:

     (1)  Removing the Library System as the primary access for
          citizens seeking access to the internet portal, and
          deleting the AHC's assistance and advice to the Library
          System in providing access to the portal and related
          matters;

     (2)  Deleting the finding that electronic government
          services should be expanded though partnerships with
          entities such as the University of Hawaii and the
          Department of Education;

     (3)  Deleting from the definition of "value added electronic
          services" for which the Portal Manager can charge a
          fee, the "ability to transact business over the
          Internet portal;"

     (4)  Permitting government agencies to charge for value
          added electronic services provided through the Portal
          Manager, as suggested by the Governor's SATD;

     (5)  Providing that Chapter 92F (Uniform Information
          Practices Act (Modified)) will control in any question
          of interpretation to protect the public's Chapter 92F
          rights with respect to the fees that are charged by the
          Portal Manager for value added electronic services
          under this bill, as suggested by the OIP;

     (6) Changing the number and composition of the AHC by:

          (A)  Decreasing the number from twelve to no more than
               eleven;

          (B)  Replacing the Director of Commerce and Consumer
               Affairs with up to three Directors of government
               agencies using or planning to use the services of
               the Portal Manager, as suggested by the Governor's
               SATD; and 

 
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          (C)  Removing the members that were chosen by the
               Senate President, the Speaker of the House, and
               the Chief Justice;

     (7)  Deleting the appropriation provision to the Library
          System for equipment and facilities related to
          accessing information on the internet;

     (8)  Providing that the Act shall be repealed on June 30,
          2003, as opposed to the bill which provides that only
          the AHC will cease to exist on June 30, 2003; and

     (9)  Making technical, nonsubstantive amendments for
          purposes of style, clarity, and consistency.
         
     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 2838, S.D. 1, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2838, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair