STAND. COM. REP. NO. 932

Honolulu, Hawaii

RE:    S.B. No. 1928

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1928, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF THE AUDITOR,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Auditor to conduct investigations involving alleged waste, fraud, abuse, nonfeasance, or malfeasance in state government.

     The bill also appropriates funds to establish an investigative unit to conduct the above-mentioned investigations.

     The Office of the Auditor submitted comments in support of the bill.

     Your Committee finds that, presently, there is no agency that performs independent investigations pertaining to alleged fraud, waste, abuse, nonfeasance, or malfeasance on behalf of the Legislature.  The Department of the Attorney General usually acts on behalf of the executive branch when there is possible liability by or to the State.

     Your Committee finds that establishing an investigative unit in the Office of the Auditor resolves this issue and will allow the Legislature to propose meaningful legislation as a result of such investigations.  Moreover, investigations can only be authorized by the Legislature under certain circumstances, by statute, or by the Auditor with the President of the Senate and the Speaker of the House of Representatives concurring.

     Your Committee amended the bill to change the appropriation to an unspecified amount and to make technical nonsubstantive changes for purposes of clarity, style, and conformity.

     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. 1928, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1928, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair