STAND. COM. REP. NO. 268

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1641
                                        S.D. 1




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

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 1641 entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC LIBRARY SYSTEM,"

begs leave to report as follows:

     The purpose of this measure is to require the State
Librarian to include a more detailed description of the status of
the Libraries Special Fund and the Library Fee for Enhanced
Services Special Fund in the annual report to the legislature.  

     Testimony in support of this measure was submitted by the
State Auditor.

     More specifically, this measure requires the State Librarian
to include financial information on these special funds, actual
expenditure of receipts by individual libraries from these
special funds, and expenditure allotment by individual libraries.

     Your Committee finds that in previous years, the former
State Librarian's annual reports misrepresented special fund
allocations to the libraries from the Libraries Special Fund and
the Library Fee for Enhanced Services Special Fund.  Current
statutes only require that the Librarian indicate the amount
allocated to individual libraries together with revenue source
and expenditure information, and not revenues deposited from and
expended by each library.


 
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                                   STAND. COM. REP. NO. 268
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     This measure will hold the library system accountable for
ensuring that the Libraries Special Fund and Library Fee for
Enhanced Services Special Fund revenues are used as intended.  

     Your Committee amended this measure by deleting the
provision that any balance remaining in the Library Fee for
Enhanced Services Special Fund be deposited into the general
fund.  This will allow any surplus moneys to remain in the fund
for use in the next year.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1641, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1641,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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