STAND. COM. REP. NO. 1040_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1105
                                     H.D. 2




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 H.B. No.
1105, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CLAIMS AGAINST THE GOVERNMENT
     BASED ON YEAR 2000 ERRORS BY COMPUTER-BASED SYSTEMS,"

begs leave to report as follows:

     The purpose of this bill is to protect government from
serving as a "deep pocket" for claims based on Year 2000 errors
generated by a government computer system.

     This bill clarifies that government immunity against claims
includes claims arising out of or relating to a Year 2000 error
produced, calculated, or generated by a government computer
system or any other computer-based system, regardless of the
cause for the Year 2000 error.  This bill also extends the
immunity past June 30, 1999. 

     The State Attorney General, the University of Hawaii, the
Department of Accounting and General Services, the City and
County of Honolulu Department of Budget and Fiscal Services, the
Hawaii Health Systems Corporation, the Bank of Hawaii, and the
Hawaii Medical Services Association testified in support of this
bill.   The Department of Transportation supported the intent of
this measure.  An individual testified in opposition to this
bill.


 
 
 
 
                                 STAND. COM. REP. NO. 1040_______
                                 Page 2

 
     Your Committee has made technical, nonsubstantive amendments
to the bill for the purposes of clarity and to correct drafting
errors.

     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 H.B. No.
1105, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1105, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair