STAND. COM. REP. NO. 3808

Honolulu, Hawaii

RE: GOV. MSG. NO. 502

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred Governor's Message No. 502, submitting for study and consideration the nomination of:

Director of Finance for the Department of Budget and Finance

G.M. No. 502

CRAIG K. HIRAI, for a term to expire at noon on 12-05-2022,

begs leave to report as follows:

Your Committee reviewed the personal history, resume, and statement submitted by Craig K. Hirai for service as the Director of Finance.

Your Committee received testimony in support of the nomination for the appointment of Craig K. Hirai from the Governor; Department of Defense; Department of Agriculture; Department of Taxation; Department of Accounting and General Services; Department of Business, Economic Development, and Tourism; Department of Land and Natural Resources; Department of Budget and Finance; Department of Human Resources Development; Department of Hawaiian Home Lands; Department of Transportation; Department of Commerce and Consumer Affairs; Department of Labor and Industrial Relations; Hawaii Housing Finance and Development Corporation; Employees' Retirement System; Office of Planning; Office of Enterprise Technology Services; Hawaii Green Infrastructure Authority; Hawaii State Energy Office; Office of the Public Defender; Hawaii Technology Development Corporation; Hawaii Association of Public Accountants; SanHi Government Strategies; Aloha Stadium Authority; and nine individuals.

Your Committee received testimony in opposition of the nomination for the appointment of Craig K. Hirai from one individual.

Your Committee finds that Mr. Hirai currently serves as the Acting Director of Finance. He previously served for six years as the Executive Director of the Hawaii Housing Finance and Development Corporation, and has also served as Chair of the State Rental Housing Trust Fund Commission and Chair of the 2001-2003 State Tax Review Commission. Mr. Hirai has a Master of Science Degree in Accounting, a Master of Business Administration Degree, and a Master of Laws in Taxation Degree. Mr. Hirai is a certified public accountant with a permit to practice in the State of Hawaii and is an inactive member of the Hawaii State Bar Association. Mr. Hirai also has forty years of experience as a tax accountant and tax attorney in the State.

After reviewing the background, experience, and qualifications of Mr. Hirai, a motion was made by the Vice Chairperson of your Committee on Ways and Means to advise and consent to Mr. Hirai's nomination for appointment as the Director of Finance. Upon taking the vote, four members of your Committee voted for the motion to advise and consent and seven members voted against the motion. Therefore, the motion to advise and consent was not adopted. Nevertheless, the nomination will move to the Senate floor for a final vote pursuant to Senate Rule 37.

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, after full consideration of the background, experience, and qualifications of the nominee, lacks a majority of votes to recommend that the Senate advise and consent to the nomination and returns the nomination to the full Senate for consideration in accordance with Senate Rule 37(5), which states: "The final question on appointments made by the Governor which require the confirmation or consent of the Senate shall be: "Will the Senate confirm (or consent) to this appointment?""

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

____________________________

DONOVAN M. DELA CRUZ, Chair