STAND. COM. REP. NO. 602

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1285

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1285, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO CAPITAL INVESTMENTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to include agency-wide technology and computer systems with an estimated useful life of greater than seven years as capital investments to allow financing with bond funds and depreciation as capital investments.

 

     Your Committee received testimony in support of this measure from Kalbert K. Young, Director, Department of Budget and Finance; and Bruce A. Coppa, Comptroller, Department of Accounting and General Services.

 

     Your Committee finds that there is a pressing need to upgrade the legacy systems and hardware of state agencies to ensure reliable, efficient, and effective technology solutions.  The Department of Accounting and General Services has testified that financing these upgrades through general fund appropriations would be unrealistic.  Your Committee also finds that treating these upgrades as capital investments and allowing them to be financed with bond funds is a viable funding alternative.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1285, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1285, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair