STAND. COM. REP. NO. 2781

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3132
                                        S.D. 2




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. 3132, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INFORMATION TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this measure is to establish an information
technology initiative special fund.

     In addition, this measure requires that percentages of the
budgets from the State, Department of Education, and University
of Hawaii be allocated to fund technology in state government and
increases the amount to a level of unspecified percentages by
2005.  This measure also requires state agencies to make budgets
and reports available online.

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

     Your Committee finds that Hawaii was one of the pioneers in
legislative access through electronic technology.  However, in
recent years, general funding for information technology has
declined substantially.  Consequently, effective government

 
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services for the development of digital infrastructures have been
impacted.

     Your Committee agrees that funds for an information
technology initiative special fund to enable state agencies to
provide services or make information available online in order to
improve delivery of these services are needed.

     Your Committee amended the measure as follows:

     (1)  Clarifying that the purpose of the measure is to
          establish a special fund, whose funds do not revert to
          the general fund.  The funds are to provide executive
          departments with procurement flexibility in conducting
          two year pilot projects for electronic delivery of
          electronic services.

     (2)  Allowing other moneys, such as private funds and
          federal funds, to be deposited into the special fund;

     (3)  Requiring the Department of Commerce and Consumer
          Affairs and the Office of Information and
          Telecommunication Services of the Department of
          Education, in addition to the Information and
          Communication Services Division of the Department of
          Accounting and General Services, to develop procedures
          for the submission of competitive proposals for funding
          information technology projects; and

     (4)  Deleting the proposed new section added to chapter 37,
          Hawaii Revised Statutes, that required percentages of
          the budgets from the State, Department of Education,
          and University of Hawaii, be allocated to fund
          technology in state government; and

     (5)  Adding a new section allowing state agencies to pursue
          and conduct two-year pilot projects related to
          electronic delivery of government services.

     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.
No. 3132, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 3132,
S.D. 2.


 
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                                 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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