STAND. COM. REP. NO. 168

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1436
                                     H.D. 1




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

Sir:

     Your Committee on Legislative Management, to which was
referred H.B. No. 1436 entitled: 

     "A BILL FOR AN ACT RELATING TO LEGISLATIVE FISCAL AND BUDGET
     ANALYSIS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Transfer the function of analyzing and assessing the
          impact of proposed special and revolving funds from the
          Legislative Auditor to the Legislative Analyst;

     (2)  Requiring the analysis to be completed by the first
          lateral deadline; 

     (3)  Removing from the functions of the Office of the
          Legislative Analyst the responsibility of reviewing and
          making recommendations on the operation of state
          programs; and

     (4)  Requiring the Legislative Auditor to continue
          performing this function until such time as the Office
          of the Legislative Analyst is funded and operational.

     The Legislative Auditor supported this measure.

 
 
 
 
 
                                 STAND. COM. REP. NO. 168
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     Currently, the Legislative Auditor is charged with analyzing
proposed new special or revolving funds within 30 days before
adjournment of the Legislature.  This function conflicts with the
Legislative Auditor's responsibility for reviewing existing
revolving and trust funds and trust accounts of every department
on a five-year cycle.  Your Committee finds that the Office of
the Legislative Analyst would be the more appropriate agency to
carry out this function.

     Further, the 30-day deadline does not provide adequate time
for the Legislature to rely on the analysis.  It deprives many
committees of the opportunity to consider analyses before making
decisions on the bills.

     Acknowledging that the Office of the Legislative Analyst has
not been funded yet, this bill provides for the transfer of
functions to take place when the Office of the Legislative
Analyst actually becomes operational.

     Your Committee also realizes that existing law dealing with
the responsibility of the Office of the Legislative Analyst to
review and make recommendations on the operation of state
programs may be considered duplicative of what is considered the
Legislative Auditor's function.  This measure removes this
function from the Office of the Legislative Analyst.

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

     (1)  Providing that subsequent proposals by a legislative
          committee to establish new special or revolving funds
          be reviewed by the Office of the Legislative Analyst
          before succeeding or final committee action is taken;
          and

     (2)  Making other technical, nonsubstantive amendments for
          purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Legislative Management that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1436, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1436, H.D.
1, and be referred to the Committee on Finance.

 
 
 
 
                                 STAND. COM. REP. NO. 168
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Legislative
                                   Management,



                                   ______________________________
                                   EZRA KANOHO, Chair