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THE SENATE |
S.C.R. NO. |
212 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
REQUESTING THE OFFICE OF THE AUDITOR TO PERFORM A MANAGEMENT, FINANCIAL, and program AUDIT OF the Department of Business, Economic Development, and Tourism, including THE HIGH TECHNOLOGY DEVELOPMENT CORPORATION, THE HAWAII STRATEGIC DEVELOPMENT CORPORATION, AND THE PROGRAMS AND ENTITIES UNDER THEIR RESPECTIVE PURVIEWS.
WHEREAS, the High Technology Development Corporation was established by Act 152, Session Laws of Hawaii 1983, to demonstrate Hawaii's commitment to the development of high technology enterprise, and codified in chapter 206M, Hawaii Revised Statutes; and
WHEREAS, the High Technology Innovation Corporation was established as a public, not-for-profit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, by Act 173, Session Laws of Hawaii 2005, and codified in chapter 206M, Hawaii Revised Statutes; and
WHEREAS, the Legislature's purpose in establishing the High Technology Innovation Corporation was to develop revenue generating programs to offset the High Technology Development Corporation's declining general fund revenues between 2002‑2006, and the Legislature is concerned that current High Technology Innovation Corporation operations appear to exceed the scope of its original purpose; and
WHEREAS, the Hawaii Strategic Development Corporation was established by Act 110, Session Laws of Hawaii 1990, to encourage and foster the development of small and emerging businesses and economic diversification, and codified in chapter 211F, Hawaii Revised Statutes; and
WHEREAS, recent actions by the Department of Business, Economic Development, and Tourism in pursuing initiatives rejected by the Legislature, and in pursuing initiatives that appear to benefit private parties rather than valid state interests, have raised considerable concern over the Department's management, performance, and what appear to be inadequate internal controls; and
WHEREAS, pursuant to chapter 23, Hawaii Revised Statutes, the Auditor is authorized to audit "the transactions, accounts, programs, and performance of all departments, offices, and agencies of the State...to discover evidence of any unauthorized, illegal, irregular, improper, or unsafe handling or expenditure of state funds or other improper practice of financial administration..."; and
WHEREAS the last financial audit of the Department of Business, Economic Development, and Tourism was in 2003; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the House of Representatives concurring, that the Office of the Auditor is requested to perform a management, financial, and program audit of the Department of Business, Economic Development, and Tourism, focusing on the following in particular:
(1) Strategic marketing and support, creative industries, and general support for economic development;
(2) The High Technology Development Corporation and the programs and entities under its purview; and
(3) The Hawaii Strategic Development Corporation and the programs and entities under its purviews; and
BE IT FURTHER RESOLVED that the Office of the Auditor is requested to report its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism; the Executive Director of the High Technology Development Corporation; the President of the Hawaii Strategic Development Corporation; and the Auditor.
DBEDT; HTDC, HSCD, Auditor; Management and Financial Audit