STAND. COM. REP. NO. 555

Honolulu, Hawaii

RE:    S.B. No. 389

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 389 entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL IMPROVEMENT PROJECTS,"

begs leave to report as follows:

     The purpose of this measure is to improve the efficiency of the allotment process for state capital improvement projects.

     Specifically, this measure directs the Legislative Reference Bureau to review the memorandum of understanding between the Department of Education and the Department of Budget and Finance for the allotment of capital improvement projects.  The purpose of the review is to provide analysis and recommendations so that the allotment processes may be replicated for use by other state agencies.

     Three state agencies offered comments on the measure.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

Your Committee finds that the allotment process for state capital improvement projects is generally governed by Part II of Chapter 37, Hawaii Revised Statutes.  However, the Department of Education and the Department of Budget and Finance currently conduct an allotment process in a manner consistent with a memorandum of understanding that establishes procedures to improve the flow of information and operations between the departments.  Your Committee believes that the capital improvement allotment process benefits from improving transparency, understanding, and knowledge of fiscal operations among departments.  Accordingly, your Committee finds that a review of the memorandum of understanding would be appropriate to improve fiscal responsibility and increase the efficiencies of other agencies.

     Upon further consideration, your Committee has amended this measure by making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 389, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 389, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

DONNA MERCADO KIM, Chair