STAND. COM. REP. NO. 354

Honolulu, Hawaii

RE: S.B. No. 222

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

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

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

begs leave to report as follows:

The purpose and intent of this measure is to require the Comptroller's annual report to the Governor and Legislature to include a list of all accounts that were 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 testimony in support of this measure from the Department of Accounting and General Services.

Your Committee finds that although the Department of Accounting and General Services (DAGS) reports on closed accounts, departments do not always report accounts that are open but inactive and serving lapsed funds. According to testimony received by your Committee, DAGS recently initiated a contract review for existing encumbrances five years or older based on the date of the contract, and will continue to review contract encumbrances on a periodic basis to assess which contracts should be closed to unencumber appropriate funds.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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

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

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SHARON MORIWAKI, Chair