STAND. COM. REP. NO. 250

Honolulu, Hawaii

RE:    S.B. No. 830

       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 Economic Development and Technology, to which was referred S.B. No. 830 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT SHARED SERVICES TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this measure is to establish a shared services technology special fund that allows various departments and agencies to combine financial resources to purchase common technology systems, hardware, and software.

     Testimony in support of this measure was submitted by the Department of Accounting and General Services, the Department of Education, and the Department of Transportation.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that allowing numerous departments and agencies to contribute to the shared services technology special fund and to collectively use the fund's resources to optimize their purchasing power through bulk purchases will decrease operating and administrative costs, as well as improve the amount of time spent on processing purchase orders.  Departments and agencies will benefit under this special fund by receiving shared services technologies at a better price point than if the department or agency purchased the service technology separately, assuming that the budget for the department or agency would enable them to make the purchase to begin with.

     Your Committee has amended this measure by:

     (1)  Clarifying that the purposes for which any funds deposited into the shared services technology special fund may be used shall be within the appropriate duties and responsibilities assigned to the Department of Accounting and General Services for information and technology services and that the use of the funds shall be authorized by the Legislature prior to expenditure;

     (2)  Requiring the Department of Accounting and General Services to include in its report to the Legislature, a financial plan for generating revenues for the shared services technology special fund; and

     (3)  Making technical, nonsubstantive amendments for the purpose of clarity.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 830, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 830, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

____________________________

CAROL FUKUNAGA, Chair