STAND. COM. REP. NO. 3077

Honolulu, Hawaii

RE:    H.B. No. 2018

       H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred H.B. No. 2018, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT PROCESSES AND SERVICES,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish guidelines for the management of capital improvement projects by requiring:

     (1)  The Comptroller to conduct annual training for the engineering personnel of each executive department and state agency that manages the department's or agencies' own capital improvement projects, and each department and agency to provide orientation training for new employees during the interim; and

     (2)  Each executive department and state agency that manages the department's or agencies' own capital improvement projects to use timelines, contract administration worksheets, ensure end-user satisfaction, and identify and involve stakeholders throughout a project's execution and closing.

     Your Committee received testimony in support of this measure from the Department of Accounting and General Services, Department of Transportation, and Office of the Auditor.

     Your Committee finds that there are great inconsistencies and a general lack of accountability in the management and construction of government capital improvement projects.  In response to these concerns, Act 177, Session Laws of Hawaii 2015, was enacted and directs the Auditor to review the process, efficiencies, and accountability of various departmental engineering sections that manage general fund capital improvement projects.  Implementation of this measure will provide transparency and ensure accountability in the management and construction of government capital improvement projects.

     Your Committee recognizes that this measure is a work in progress and that there are questions regarding what training will entail, who will conduct the training, consequences for noncompliance, and cost.  Your Committee finds that these issues merit further discussion and requests that your Committee on Ways and Means further examine those issues should it consider this measure for passage.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2018, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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DONNA MERCADO KIM, Chair