Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Tourism and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 41 entitled:

beg leave to report as follows:

The purpose of this measure is to require that all subcontracts and partnership agreements entered into by a contractor using public funds shall be subject to public inspection under the Uniform Information Practices Act (UIPA), chapter 92F, Hawaii Revised Statutes.

Your Committees received testimony in support of this measure from the Office of Information Practices and the Hawaii Tourism Authority (HTA).

Your Committees firmly believe that all expenditures of public funds must be open for public scrutiny; taxpayers have an absolute right to review and analyze the manner in which their money is spent.

Your Committees have become aware in the recent past of several instances in which there has apparently been confusion over whether subcontracts and partnership agreements entered into by a contractor using public funds are subject to UIPA.

Although your Committees believe this issue should already be clear under the law, this measure will remove any doubt by amending the procurement law to specifically include, in its public access provisions, subcontracts and partnership agreements entered into by a contractor using public funds.

Your Committees also support the provisions of this measure that clarify that the HTA is subject to UIPA as well, despite its exemption from the procurement law. While it may make sense in some instances to exempt a public agency from the procurement law, for increased efficiency or to ease unnecessary administrative burdens, your Committees can see no reason not to subject all expenditures of public funds to public scrutiny.

With this amendment, all contracts, subcontracts, and partnership agreements entered into by HTA, the Hawaii Visitors and Convention Bureau (HVCB), or any entity contracted or subcontracted by HTA or HVCB, shall be made accessible to the public.

Finally, your Committees note that UIPA contains provisions to protect trade secrets and to prevent unwarranted invasions of personal privacy, and so there is no reason not to apply UIPA as broadly as possible.

As affirmed by the records of votes of the members of your Committees on Tourism and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 41 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.