STAND. COM. REP. NO. 1846

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 646
                                     S.D. 2
                                     H.D. 3




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
646, S.D. 2, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

     The purpose of this bill, as received, is to improve various
aspects of the functioning of state government as follows:

     (1)  Part I--Authorizes the Attorney General to charge state
          agencies for the collection of delinquent accounts;

     (2)  Part II--Changes the fee for copying government records
          that is charged to the public;

     (3)  Part III--Authorizes the Barbers Point Naval Air
          Station Redevelopment Commission to arrange for or
          provide interim infrastructure services to the owners
          of properties being conveyed by the Navy; and

     (4)  Part IV--Creates a structure for managing the Kapolei
          Recreational Sports Complex and makes the Stadium
          Authority responsible for managing it.

     For purposes of the public hearing, your Committee
circulated a proposed H.D. 3 version of this bill that retains
the existing language and adds the following new language:


 
 
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     (1)  Part V--Exempts sales to foreign diplomats from the
          general excise tax and accommodations furnished to
          foreign diplomats from the transient accommodations
          tax;

     (2)  Part VI--Establishes the Hawaii Performance
          Partnerships Board to develop community outcomes of
          well-being and to increase the use of performance
          measurement;

     (3)  Part VII--Authorizes fees, fines, and other
          administrative charges collected in the management of
          public lands to be deposited in the Special Land and
          Development Fund;

     (4)  Part VIII--Provides additional security to lenders on
          land or interest covered by a lease, patent, license,
          agreement, or other instruments, and provides
          flexibility to the Department of Land and Natural
          Resources to assign or transfer leases based on current
          industry standards;

     (5)  Part IX--Exempts the counties from the public notice
          requirements of Chapters 103D and 103F, Hawaii Revised
          Statutes, until December 31, 2000;

     (6)  Part X--Authorizes the Director of Finance to invest
          state funds in federal Agricultural Mortgage
          Corporation notes and bonds rather than joint stock
          farm loan bonds; and

     (7)  Part XI--Exempts the construction of air cargo
          operations facilities from the general excise tax and
          use tax.

     The Hawaii Farm Bureau and the Waianae Hawaiian Civic Club
testified in support of the H.D. 2 version of this bill, and the
Department of Agriculture commented on this measure.

     With regard to the proposed H.D. 3 version that was
circulated prior to the hearing, the following submitted
testimony on specific parts of the bill:

     (1)  The Department of Land and Natural Resources (DLNR),
          the Attorney General's Office, and the Department of
          Human Services testified in support of Part I; and the
          Hawaii Government Employees Association, AFSCME Local
          152, AFL-CIO testified in support of the intent of
          Part I;

 
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     (2)  Hawaii's Thousand Friends testified in support of Part
          II; the Office of Information Practices testified in
          support of the intent of Part II; and the Department of
          Taxation (DOTAX) commented on Part II;
      
     (3)  The Department of Hawaiian Home Lands, the Department
          of Transportation (DOT), and the Barbers Point Naval
          Air Station Redevelopment Commission testified in
          support of Part III;

     (4)  The Stadium Authority commented on Part IV;

     (5)  DOTAX commented on Part V;

     (6)  The Office of the Governor, the Good Beginnings
          Alliance, and the State Health Planning and Development
          Agency testified in support of Part VI;

     (7)  DLNR testified in support of Part VII;

     (8)  DLNR commented on Part VIII;

     (9)  The Honolulu Department of Budget and Fiscal Services
          testified in support of Part IX; and the Department of
          Accounting and General Services, the Hawaii Newspaper
          Agency, the Legislative Information Services of Hawaii,
          and two members of the Honolulu City Council commented
          on Part IX;

     (10) The Department of Budget and Finance and Salomon Smith
          Barney, Inc., testified in support of Part X;

     (11) DOT testified in support of Part XI; and DOTAX and
          Hawaiian Airlines commented on Part XI; and

     (12) The Tax Foundation of Hawaii commented on this measure.

     In addition, testimony was submitted regarding individual
development accounts (IDAs).  The Honolulu Department of
Community Services, Bank of Hawaii, Parents and Children
Together, Nanakuli Neighborhood Housing Services, American
Friends Service Committee, and an individual testified in support
of IDAs.  Waimanalo Community Development Corporation testified
in favor of the intent of IDAs.

     The development of the Barbers Point Naval Air Station will
affect the entire surrounding area, and your Committee is
concerned that the House of Representatives is neither a part of
the selection process nor represented on the Barbers Point Naval

 
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Air Station Redevelopment Commission.  At a minimum, the
appointment of a Representative to this Commission should be
allowed.  In addition, your Committee urges that a Representative
from the district or from surrounding areas be included in the
selection process if not also on the Commission.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Adding the new substance in the proposed H.D. 3, Parts
          V to XI;

     (1)  Adding a new Part XII Establishing a structure for a
          special savings account program known as the Individual
          Development Account Program; and

     (2)  Making technical, nonsubstantive revisions for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
646, S.D. 2, H.D. 2, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 646,
S.D. 2, H.D. 3.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair