THE SENATE

S.C.R. NO.

212

TWENTY-FOURTH LEGISLATURE, 2008

S.D. 2

STATE OF HAWAII

 

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING THE AUDITOR TO INVESTIGATE PROCUREMENT AND EXPENDITURE PRACTICES OF THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM AND SELECTED ATTACHED AGENCIES.

 

 


     WHEREAS, the Department of Business, Economic Development, and Tourism is charged with a wide range of responsibilities that are intended to spur immediate gains as well as garner long-term economic benefits for the State and Hawaii taxpayers; and

 

     WHEREAS, during the past five years, as the Legislature considered adopting and, in some cases, rejecting various proposals advanced by the Department of Business, Economic Development, and Tourism to further economic development in the State, the Legislature has also been mindful of its rationale for its eventual decisions; and

 

     WHEREAS, whether the proposals of the Department of Business, Economic Development, and Tourism have involved the High Technology Development Corporation, the High Technology Innovation Corporation, the Hawaii Strategic Development Corporation, overseas offices in Taipei and Beijing, energy programs, various strategic marketing and enterprise zone programs, and other programs of the Department, the Legislature has made its decisions on the basis of the belief that related public funds will be expended as the Legislature intended; and

 

     WHEREAS, the Legislature also expects the Department of Business, Economic Development, and Tourism to adhere to the Legislature's decisions when specific proposals of the Department are not adopted; and

 

     WHEREAS, compliance with procurement and expenditure laws and with other laws that govern state employee behavior and job performance is an unchallenged expectation for every department and employee of state government; and

 

     WHEREAS, pursuant to chapter 23, Hawaii Revised Statutes, the Auditor is authorized to audit "the transactions, accounts, programs, and performance of all departments, offices, and agencies of the State...to discover evidence of any unauthorized, illegal, irregular, improper, or unsafe handling or expenditure of state funds or other improper practice of financial administration..."; and

 

WHEREAS, an examination of the documents, electronic mail, and other written material of the Department of Business, Economic Development, and Tourism and the testimony and behavior of witnesses and officials provided to the Legislature have raised considerable concern that standards are not being met and state funds are not yielding defensible returns on investment; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the House of Representatives concurring, that the Auditor is requested to investigate procurement and expenditure practices of the Department of Business, Economic Development, and Tourism and selected attached agencies; and

 

     BE IT FURTHER RESOLVED that, in conducting the investigation, the Auditor is requested to include but not be limited to a review of the High Technology Development Corporation, the High Technology Innovation Corporation, the Hawaii Strategic Development Corporation, and any programs and entities under each respective corporation; and

 

     BE IT FURTHER RESOLVED that the Auditor is requested to investigate programs within the Department of Business, Economic Development, and Tourism that include but are not limited to those covering strategic marketing and support, including the overseas offices, creative industries, energy and strategic industries, the foreign trade zone, and general support for economic development; and

 

BE IT FURTHER RESOLVED that the Auditor is requested to report findings and recommendations, including any necessary proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Director of Business, Economic Development, and Tourism, the Executive Directors of the High Technology Development Corporation and High Technology Innovation Corporation, respectively, and the President of the Hawaii Strategic Development Corporation.

Report Title: 

DBEDT; Auditor; Procurement and Expenditure Practices