STAND. COM. REP. NO. 397

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1303
                                        S.D. 1




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

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred S.B. No. 1303 entitled: 

     "A BILL FOR AN ACT RELATING TO THE REVIEW OF THE SALARIES OF
     THE TRUSTEES OF THE OFFICE OF HAWAIIAN AFFAIRS,"

begs leave to report as follows:

     The purpose of this measure is to re-start the four-year
cycle to review the salaries of the Trustees of the Office of
Hawaiian Affairs.

     Testimony in support of the measure was received from the
Office of Hawaiian Affairs.  The Attorney General testified in
support of the measure with amendments.

     Testimony in opposition to the measure was received from the
Hawaiian Political Action Council of Hawaii and the Spiritual
Nation of Ku.

     Your Committee finds that the process originally envisioned
under Act 358, Session Laws of Hawaii 1993, was to initially have
a salary commission appointed by the Governor prior to
November 30, 1996, and in four-year increments thereafter.  By
the fortieth legislative day of the next regular legislative
session, the salary commission would submit its recommendations
for any trustee salary adjustments to the Legislature.
Unfortunately, through inadvertence, the initial salary
commission was not appointed and the four-year review cycle was
never initiated.  This measure attempts to remedy the problem by

 
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changing the appointment date of the initial salary commission
from November 30, 1996, to November 30, 1998.

     Testimony from the Attorney General noted, however, that the
measure should have included a provision authorizing the Governor
to appoint commissioners upon enactment to enable the commission
to report to the Legislature by March 30, 1999.

     Accordingly, your Committee has amended the measure by:

     (1)  Adding a provision that authorizes the Governor to
          appoint salary commission members immediately so that
          the process of reviewing trustee salaries may begin
          this year;

     (2)  Changing the dates to accommodate the immediate
          appointment of salary commissioners; and

     (3)  Making technical, nonsubstantive amendments for the
          purpose of style and clarity.

     Your Committee believes that the amended measure will
provide for establishment of the salary review process originally
envisioned under Act 358, Session Laws of Hawaii 1993.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 1303, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1303, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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