STAND. COM. REP. NO. 592

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1145
                                        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 S.B.
No. 1145, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF COMMERCE
     AND CONSUMER AFFAIRS,"

begs leave to report as follows:

     The purpose of this bill is to consolidate certain special
and revolving funds of the Department of Commerce and Consumer
Affairs into the department's compliance resolution fund, to be
managed at a department-wide level to fund department operations.

     In particular, this bill provides that revenues, fees, and
fines collected by the Department's Business Registration and
Professional and Vocational Licensing Divisions are to be
deposited into the compliance resolution fund, and that
unencumbered balances existing on June 30, 1999, in the cable
television fund, the Division of Consumer Advocacy fund, the
financial institution examiners' revolving fund, and the special
handling fund, are to be deposited into the compliance resolution
fund.

     Your Committee agrees with the intent of this bill, and
finds that the bill will provide the Department of Commerce and
Consumer Affairs with greater flexibility in managing its funds
to support its goal of fiscal self-sufficiency.  Your Committee

 
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                                   STAND. COM. REP. NO. 592
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further finds that the Department will account for all sources of
funding separately in order to track each division's revenues
against its expenses.

     Upon further consideration, your Committee has amended the
bill to make technical, nonsubstantive changes for the purposes
of clarity and consistency, including:

     (1)  Making conforming amendments to sections 36-27, 92-24,
          207-14, 412:2-105, and 482-2, Hawaii Revised Statutes;

     (2)  Amending Act 216, Session Laws of Hawaii 1997, and Act
          142, Session Laws of Hawaii 1998, to address the
          potential problems created by the repeal and
          reenactment of sections 36-27 and 36-30, Hawaii Revised
          Statutes; and

     (3)  Renumbering the sections.

     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. 1145, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 1145,
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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