STAND. COM. REP. NO. 1189

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 536
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Education and Public Safety and Military
Affairs, to which was referred S.B. No. 536, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO COMPUTER AND COMMUNICATION
     SYSTEMS,"

beg leave to report as follows:

     The purpose of this bill is to allow state agency heads to
purchase computer and communication systems with proceeds from
the sale of general obligation bonds.

     The Department of Education (DOE) testified in support of
the bill.  DOE testified that acquisition of current and robust
technology is critical to engage students in projects that
encourage skill development well beyond word processing,
spreadsheets, and databases.

      The Department of Budget and Finance testified in
opposition to the bill, expressing concerns that using general
obligation bonds to finance equipment purchases would adversely
impact the State's credit rating, as well as impair the State's
ability to finance any new or existing statewide capital
improvement projects.

     Your Committees find that while the purchasing of computers
and communication systems can be an expensive undertaking for
State agencies, these systems are vital if Hawaii is to keep up
with technological advances in managing public safety database
systems, networking with other agencies and states, and
education.

 
                                 STAND. COM. REP. NO. 1189
                                 Page 2

 

     Your Committees have decided to advance this bill to the
Committee on Finance for purposes of further discussion.

     As affirmed by the records of votes of the members of your
Committees on Education and Public Safety and Military Affairs
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 536, S.D. 1, and
recommend that it pass Second Reading and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Public Safety and Military
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
NESTOR GARCIA, Chair               KEN ITO, Chair