STAND. COM. REP. NO. 216

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 4
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 4 entitled: 

     "A BILL FOR AN ACT RELATING TO GOVERNMENT ADMINISTRATION,"

begs leave to report as follows:

     The purpose of this measure is to prohibit state agencies
from charging other state agencies for services or goods provided
to other state agencies, that are funded by general funds.

     Testimony in opposition to this measure was received from
the Department of Budget and Finance and the Department of
Transportation.  Testimony in support of the intent of this
measure was received from the Department of Accounting and
General Services. 

     Your Committee finds that in order to improve government
efficiency and productivity, agencies should not charge each
other for goods and services.

     Your Committee adopted the recommendation of the Department
of Accounting and General Services and has amended this measure
to limit its applicability only to goods and services funded by
general funds.  

     Your Committee also has amended this measure to change the
designated chapter number for this new statutory material from
chapter 26, Hawaii Revised Statutes, to chapter 37, Hawaii

 
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                                   STAND. COM. REP. NO. 216
                                   Page 2


Revised Statutes, in order to place this measure in a more
appropriate statutory chapter.  

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 4, as amended herein, and recommends that it
pass Second Reading in the form attached hereto as S.B. No. 4,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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