STAND. COM. REP. NO. 2166

Honolulu, Hawaii

RE:    S.B. No. 2563

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Development and Technology, to which was referred S.B. No. 2563 entitled:

"A BILL FOR AN ACT RELATING TO MANAGEMENT OF STATE FUNDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the deadlines for the Director of Finance to:

     (1)  Establish an accessible searchable website that provides certain state award information, from January 1, 2009, to January 1, 2013;

     (2)  Establish and implement a pilot program to test the collection and accession of data about subgrants and subcontracts and determine how to implement a subaward reporting program across the State, from July 1, 2008, to January 1, 2013; and

     (3)  Terminate the pilot project, from January 1, 2010, to July 1, 2014.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance.

     Your Committee finds that the previous administration made a policy decision not to implement the website and pilot project required under section 36-2.5, Hawaii Revised Statutes, due to fiscal and staffing constraints, as well as technical concerns.  Given that decision, your Committee is in agreement with the Director of Finance that extending the start and end dates for the pilot project by an additional year would be more realistic.  Your Committee has also considered the Director's request to transfer responsibility of this project to the State's Chief Information Officer, as the Chief Information Officer is a more appropriate authority for this project.

     Your Committee has amended this measure accordingly, by:

     (1)  Changing the implementation date of the pilot program to test the collection and accession of data about subgrants and subcontracts and determine how to implement a subaward reporting program across the State, to January 1, 2014; and the termination date for the pilot project to July 1, 2015; and

     (2)  Replacing the Director of Finance and the Department of Budget and Finance with the Chief Information Officer, as the entity responsible for establishment of the searchable website and pilot project.

     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. 2563, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2563, 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