STAND. COM. REP. NO. 1505-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 3100

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred S.B. No. 3100, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STRUCTURE OF GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to increase efficiency and effectiveness of state government by:

(1) Consolidating the Departments of Human Resources Development and Budget and Finance into a single department, which shall be known as the Department of Budget, Finance, and Human Resources; and

(2) Appropriating funds to the Department of Budget and Finance for the purposes of consolidating the Departments of Human Resources Development and Budget and Finance into a single department.

The Department of Budget and Finance, Department of Land and Natural Resources, Department of Human Resources Development, and Office of Enterprise Technology Services opposed this measure. The Office of the Governor and Department of Accounting and General Services offered comments on this measure.

Your Committee has amended this measure by:

(1) Changing the appropriation amount for consolidation of the departments from $100,000 to an unspecified amount;

(2) Inserting the contents of House Bill No. 2236, H.D. 1, which creates a new entity that brings various communications and information services under a single regulatory body and ensures that the people of Hawaii are afforded equitable access to connectivity in all parts of the State by:

(A) Transferring to the Department of Business, Economic Development and Tourism (DBEDT) jurisdiction over cable TV and the Broadband Assistance Advisory Council from the Department of Commerce and Consumer Affairs and telecommunications carriers from the Public Utilities Commission;

(B) Establishing the position of Commissioner of Telecommunications to oversee and supervise the regulatory functions transferred to DBEDT;

(C) Creating a special fund in DBEDT for administration, including personnel costs, of regulation of cable systems and telecommunications carriers; and

(D) Transferring all rights, powers, duties, assets, funds, and employees of the Department of Commerce and Consumer Affairs and the Public Utilities Commission associated with the regulatory jurisdiction transferred by this measure to DBEDT; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

Should the Committee on Finance deliberate on this measure further, your Committee on Labor & Public Employment respectfully requests that it consider appropriating $100,000 for the purposes of consolidating the Departments of Human Resources Development and Budget and Finance into a single department.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3100, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3100, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair