CONFERENCE COMMITTEE REP. NO. 81

Honolulu, Hawaii

                 , 2015

RE:    S.B. No. 104

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 104, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BUDGETING,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is establish a pilot project for the development of and data collection for efficiency measures intended to be included with budget documents submitted to the Legislature.

     More specifically, this measure:

(1)  Requires the Director of Finance to select one state department to participate in the pilot project;

(2)  Requires the selected state department to submit at least three proposed efficiency measures to the Director of Finance;

(3)  Requires the Director of Finance to approve the efficiency measures to be used by the selected state department;

(4)  Requires the Director of Finance to submit to the Legislature a report of its findings and recommendations concerning the pilot project and efficiency measures used;

(5)  Requires the Auditor to submit to the Legislature a report evaluating the pilot project; and

(6)  Appropriates moneys to the Department of Budget and Finance for the pilot project.

     Your Committee on Conference finds that the identification and use of efficiency measures can assist the State in determining realistic department functionality and can ensure that the planned investment of funds is thoroughly considered against anticipated outcomes.  Your Committee on Conference believes that the establishment of a single-department based efficiency measure pilot project will provide the State with the information it needs to implement efficiency measures across all state departments in the future.

     Your Committee on Conference has amended this measure by:

(1)  Inserting a $100,000 appropriation for fiscal year 2015-2016;

(2)  Deleting the appropriation for fiscal year 2016-2017;

(3)  Adding language that specifies that any unexpended or unencumbered moneys appropriated by section 8 of this measure lapse on June 30, 2017; and

(4)  Changing the effective date to July 1, 2015.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 104, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 104, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE, Chair

____________________________ JILL N. TOKUDA, Chair