STAND. COM. REP. NO. 1429

Honolulu, Hawaii

, 2021

RE: S.B. No. 222

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Government Reform, to which was referred S.B. No. 222, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES,"

begs leave to report as follows:

The purpose of this measure is to require the Comptroller's annual report to the Governor and Legislature to include a list of all accounts closed by the Comptroller during the immediately preceding fiscal year and a list of accounts that remain open but that are serving a lapsed program or initiative.

Your Committee received comments on this measure from the Department of Accounting and General Services.

Your Committee notes that, according to the Department of Accounting and General Services, the current financial management system is based on common business-oriented language, more commonly known as COBOL, which is difficult to navigate. Processes need to be run overnight before results and reports can be run. In order to provide the annual report, the Department would need to provide the Office of Enterprise Technology Services with criteria at a point in time to run the report. The report may not encompass certain appropriations that could be requested to not revert and not lapse from departments and agencies. Your Committee believes that it would be more advantageous to wait until the Department's new financial management system replacement is implemented.

Accordingly, your Committee has amended this measure by:

(1) Requiring the Comptroller to submit the Comptroller's annual report to the Governor and the Legislature beginning July 1, 2022; and

(2) Changing its effective date to July 1, 2112, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Government Reform that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 222, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 222, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Government Reform,

____________________________

ANGUS L.K. McKELVEY, Chair