STAND. COM. REP. NO. 390

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 450
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 450 entitled: 

     "A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

begs leave to report as follows:

     The purpose of this measure is to expand the duties of the
managed process committee and eliminate the sunset provision
created in Act 230, Session Laws of Hawaii, 1998.

     Testimony in favor of this measure was received from Pacific
Geotechnical Engineers, Inc.  Testimony opposed to this measure
was received from Hawaii Government Employees Association.

     Your Committee finds that the state government's budgeting,
accounting, and procurement systems should serve as effective
tools for the efficient use of scarce resources in pursuing the
goals and objectives of the people of Hawaii.

     Your Committee finds that in Act 230, Session Laws of
Hawaii, 1998, a special committee was established to begin the
task of transforming the State's accounting, procurement, and
budgeting systems.  This committee was established to develop
prototype models for transforming the budgeting and accounting
systems of three departments. 

     Your Committee finds that currently there is a need to
expand the duties and roles of the managed process committee by
allowing the committee to monitor and review the management

 
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process and develop costing models and costs of conversion to the
private sector.

     Your Committee amended the measure to:

     (1)  Establish specific criteria that the managed process
          committee shall use when executing its duties,
          including costing models and ensuring correct
          allocations of overhead costs;

     (2)  Add specific dates by when the managed process should
          be completed; and 

     (3)  Eliminate the managed process committee's duty to
          ensure merit principles are not violated.  

     Your Committee also made technical, nonsubstantive changes
to the measure.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 450, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 450, S.D. 1, and be referred to the Committee on Ways and
Means.

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



                                   ______________________________
                                   ROD TAM, Chair

 
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