STAND. COM. REP. NO. 338

Honolulu, Hawaii

RE:    S.B. No. 1930

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Tourism and Government Operations, to which was referred S.B. No. 1930 entitled:

"A BILL FOR AN ACT RELATING TO THE COMMISSION TO REVIEW STATE GOVERNMENT OPERATIONS,"

begs leave to report as follows:

     The purpose of this measure is to establish commissions to review state government operations.

     Your Committee received testimony in support of this measure from the Hawaii Government Employees Association.  Testimony in opposition was received from the Department of Budget and Finance.  Comments were received from the Office of Information Practices.

     The commissions to review state government operations are similar to those proposed in the federal Government Efficiency Act of 2006, which authorizes the establishment of federal review commissions with respect to specific aspects of federal programs and agencies.  The state commissions would review state government operations to make recommendations on how to improve the operations, effectiveness, and efficiency of state programs and agencies in order to determine whether a reorganization, consolidation, abolishment, expansion, or transfer of functions of existing state programs and agencies are necessary to promote more effective management of the executive branch.

     A commission could be established whenever deemed appropriate by executive order of the Governor or by concurrent resolution of the Legislature.  A commission would be under the Auditor for administrative purposes, but would be independent of the Auditor, the legislative, the judiciary, and the executive branches of government.  A commission would review the operations of a specified state government department, agency, or program as identified in the executive order or concurrent resolution.  A commission would report findings and recommendations to the Governor and the Legislature within nine months from the issuance of an executive order or adoption of a concurrent resolution.

     Your Committee finds that periodic review of a state government department, agency, or program to assess the efficiency and effectiveness of operations is warranted.  Although the Auditor conducts operational and managerial reviews of departments, agencies, and programs, as requested by the Legislature, your Committee believes that a permanent mechanism should be in place to conduct the reviews on an ongoing basis to ensure that public funds are being expended properly and the public trust in government is maintained.

     Your Committee has amended this measure by:

     (1)  Adding a representative of a government employee organization to the membership of a commission; and

     (2)  Requiring a commission to hold public meetings and public hearings pursuant to chapter 92, Hawaii Revised Statutes, relating to open meetings.

     As affirmed by the record of votes of the members of your Committee on Tourism and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1930, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1930, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and Government Operations,

____________________________

CLARENCE K. NISHIHARA, Chair