STAND. COM. REP. NO. 1479

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 700
                                        H.D. 1
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 700, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE OFFICE OF HAWAIIAN
     AFFAIRS BUDGET,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds for the
fiscal biennial budget of the Office of Hawaiian Affairs.

     Your Committee has made a fundamental change from past
practice by appropriating only general funds and not trust funds.
This will enable the Office of Hawaiian Affairs to serve
Hawaiians who do not meet the blood quantum standard to qualify
as native Hawaiians while recognizing that the trust funds should
be under the sole control of the Trustees of the Office of
Hawaiian Affairs.

     Although, your Committee acknowledges and recognizes that
the Trustees of the Office of Hawaiian Affairs have the right and
responsibility to manage the proceeds from the public land trust,
your Committee is mindful of the Legislature's responsibility to
exercise proper oversight over public moneys.  As such, your
Committee will continue to monitor the use of general funds by
the Office of Hawaiian Affairs to ensure that these funds are
used for the purposes as expressed in this measure.

 
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                                   STAND. COM. REP. NO. 1479
                                   Page 2


     In view of the fiscal constraints facing the State, your
Committee found it necessary to reduce the amount of general fund
support requested by the Office of Hawaiian Affairs.
Accordingly, your Committee has amended this bill by providing
$2,431,368 in each year of the 1999-2001 fiscal biennium.  Your
Committee wishes to express its appreciation to the Trustees and
their staff for their assistance in identifying areas of
potential cost containment.

     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.
700, 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. 700,
H.D. 1, S.D. 2.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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