STAND. COM. REP. NO. 798

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 4
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 4, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to prohibit state agencies from
charging other state agencies for goods or services procured with
general funds.

     Your Committee has gutted the bill and in its place has
inserted the contents of S.B. No. 38, S.D.1 without reference to
the counties and an annual audit.  The resulting bill authorizes
the auditor to hire independent auditors to conduct audits of
state government to ultimately reduce government waste and
enhance government spending.  The auditor is to report to the
2000 legislative session with its findings and recommendations.

     Your Committee further finds that this bill is necessary to
address the public demand for more accountability from state
government and to eliminate government waste, fraud or the
excesses that have plagued the administration for many years.

     Additionally, your Committee has included provision to
create a joint legislative task force to conduct interim hearings
related to state government efficiency.  The task force is to

 
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                                   STAND. COM. REP. NO. 798
                                   Page 2


receive public input and may submit suggestions to the auditor on
possible subjects for audits.

     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. 4,
S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 4, S.D. 2.

                                 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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