STAND. COM. REP. NO. 2778

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2838
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2838 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to establish the Access
Hawaii Committee to provide oversight of the Internet portal
manager.

     In addition, this measure authorizes the setting of charges
for value added electronic services that will be collected by the
portal manager.

     Testimony in support of the measure was received from the
Governor's Special Advisor on Technology Development, Department
of Accounting and General Services, Hawaii State Public Library
System, the Judiciary, Department of Commerce and Consumer
Affairs, and High Technology Development Corporation.

     Your Committee finds that the expansion of the Internet has
fundamentally transformed society and the conduct of business.
In order to better serve citizens and businesses in the new
economy and reduce the digital divide, government must expand
access to information and government services over the Internet
to ensure access for everyone.  Towards this end, the State
entered into a contract with a vendor to establish, develop,
operate, maintain, and expand an Internet portal to increase

 
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electronic access and commerce among Hawaii residents,
businesses, and government entities.

     Your Committee agrees that establishing the Access Hawaii
Committee will provided needed oversight of the portal manager's
activities, including the collection of statutory fees on behalf
of a government agency and collection of charges for value added
electronic services, which includes the ability to transact
business over the Internet.

     Your Committee received several testimonies expressing
concerns about the "digital divide" and the importance of
allowing the general public access to the Internet portal.  Your
Committee finds that public libraries are places where Hawaii
residents are already accustomed to visit for help in finding
information and where the digital divide is most efficiently and
economically addressed.

     Your Committee amended the measure as follows:

     (1)  In section 2 of the measure, adding the ability to
          transact business over the Internet portal as one of
          the "value added electronic services";

     (2)  In section 4 of the measure, adding a subsection
          requiring the Access Hawaii Committee to assist the
          Hawaii state public library system in providing access
          to the Internet portal and advice on related issues;
          and

     (3)  Adding a new section to provide funding to the public
          library system for Internet access computers and
          connections, digitalization equipment, and Internet
          kiosks to provide the general public greater access to
          information on the Internet;

     (4)  Adding three members to the Access Hawaii Committee, a
          member of the Senate to be chosen by the President of
          the Senate, a member of the House of Representatives to
          be chosen by the Speaker of the House, and a
          representative of the Judiciary to be chosen by the
          Chief Justice; and

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

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.

 
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No. 2838, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 2838, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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