Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1311 entitled:

begs leave to report as follows:

The purpose of this measure is to remove the exemption of specified funds from paying central service and departmental administrative expenses.

The bill also makes appropriations from those funds to the departments that administer them.

Your Committee finds that central service and departmental administrative expenses are a significant component of the state budget. Currently, thirty-four funds are exempt from central service fees, and twenty-nine are exempt from departmental administrative expense fees. Your Committee finds that not all of the funds currently exempt still merit this special treatment. This bill would remove the exemption of fifteen funds from central service fees and fourteen funds from departmental administrative expenses. Your Committee finds that removing the exemption for these funds is appropriate.

Your Committee has amended this bill by:

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. 1311, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1311, S.D. 1, and be placed on the calendar for Third Reading.