Honolulu, Hawaii



RE:    H.B. No. 697

       H.D. 1

       S.D. 2




Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 697, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to require the Auditor to conduct a study that reviews the process, efficiencies, and accountability of various departmental engineering sections that manage general fund capital improvement projects.


     Specifically, the measure requires the Auditor to determine:


     (1)  If each office adheres to a specific timeline for the purpose of ensuring that the project continues to move forward in a timely manner;


     (2)  Whether consultants and contractors that are used by departmental engineering sections are properly managed in the public interest; and


     (3)  The level of end-user satisfaction with capital improvement projects performed by various departments.


     Your Committee received written comments in support of this measure from the Department of Accounting and General Services.


     For purposes of a public hearing on this measure, your Committee circulated a Proposed Senate Draft 2.  In addition to retaining the provisions of the Senate Draft 1, the proposed draft:


     (1)  Requires the Department of Accounting and General Services to:


          (A)  Undertake lease buyback processing under the program of centralized engineering and office leasing services;


          (B)  Facilitate facility agreements between the State and private investors for the sale of facilities to private investors; and


          (C)  Conduct an inventory of all leases of property between state agencies and private entities and submit a report to the Legislature prior to the 2016 Regular Session; and


     (2)  Appropriates moneys for the Department of Accounting and General Services to conduct the inventory of all leases of property between state agencies and private entities.


     Your Committee received no testimony on the proposed draft.


     Your Committee finds that, pursuant to section 26-6, Hawaii Revised Statutes, the Department of Accounting and General Services is responsible for undertaking the program of centralized engineering and office leasing services, including operation and maintenance of public buildings, for departments of the State.  Your Committee further finds that a number of executive departments have undertaken the responsibility for the engineering of numerous general fund construction and renovation projects, thereby decentralizing engineering activities.  Your Committee believes that this measure, among other things, will provide information necessary to determine if it is in the public interest to continue to operate duplicative engineering operations within various departments.


     Your Committee has amended this measure by adopting the Proposed Senate Draft 2 and further amended it by making technical nonsubstantive changes for purposes of clarity, consistency, 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 H.B. No. 697, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 697, H.D. 1, S.D. 2.


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