STAND. COM. REP. NO. 3208

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.R. No. 60
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.R. No. 60 entitled:

     "SENATE RESOLUTION REQUESTING THE GOVERNMENT OPERATIONS AND
     HOUSING COMMITTEE TO REVIEW CURRENT TELEPHONE USAGE AND TO
     DETERMINE WHETHER DEPARTMENTAL GUIDELINES NEED TO BE
     ESTABLISHED,"

begs leave to report as follows:

     The purpose of this measure is to ensure efficient telephone
usage by state departments and agencies and maximize the use of
Hawaii's taxpayer moneys.

     This measure requests the Government Operations and Housing
Committee to review the State's telephone usage and establish any
guidelines, if necessary, for the implementation of telephone
"key systems" in appropriate State offices.

     Testimony in support of this measure was received from the
Department of Accounting and General Services.  Comments were
received from GTE Hawaiian Tel.

     Currently, the State uses a statewide telecommunication
system called the Hawaii Advanced Telecommunication System (HATS)
Services, State Procurement Office Price List Number 96-61,
provided under contract by GTE Hawaiian Tel.  GTE Hawaiian Tel is
responsible for implementing and maintaining the State's
telephone network using items from the State Procurement Office
Price List.

 
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     Your Committee finds that although the State currently
benefits from the resources and services of GTE Hawaiian Tel,
there is always the potential for conflict whenever the State
relies too extensively upon one contractor, especially for
essential services such as telecommunications.  The State may
face problems in the future if the contract with GTE Hawaiian Tel
is not renewed and the State has relied too extensively on GTE's
expertise.

     Your Committee also finds that the State's current
telecommunications system is the result of efforts to increase
the State's control over its telecommunications system, minimize
the State's reliance on outside vendors, and maximize government
efficiency.

     Your Committee has amended this measure by:

     (1)  Stating that under the current telephone system, there
          have been problems with intra-office connections and
          that equipment indicating when intra-office lines are
          in use would help make telephone usage more efficient;

     (2)  Requesting the Department of Accounting and General
          Services instead of the Government Operations and
          Housing Committee to review telephone usage;

     (3)  Requesting the Department of Accounting and General
          Services to also review the cost of implementing and
          maintaining telephone "key systems";

     (4)  Changing the title of this measure to reflect the
          change from the Government Operations and Housing
          Committee to the Department of Accounting and General
          Services; and

     (5)  Changing the reporting date to before the Regular
          Session of 2001.

     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 concurs with the intent and
purpose of S.R. No. 60, as amended herein, and recommends that it
be referred to the Committee on Ways and Means, in the form
attached hereto as S.R. No. 60, S.D. 1.


 
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                                   STAND. COM. REP. NO. 3208
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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