CONFERENCE COMMITTEE REPORT NO. 112

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 1518
                                  H.D. 1
                                  C.D. 1




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

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1518, H.D. 1, entitled:

     "A BILL FOR AN ACT RELATING TO GOVERNMENT OPERATIONS," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Close the Hawaii State Hospital;

     (2)  Authorize the Director of Health to privatize the
          Hawaii State Hospital's current functions; and

     (3)  Create a joint legislative committee to oversee the
          efforts to address Hawaii State Hospital, Hawaii
          Revised Statutes.


 
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     Upon further consideration, your Committee on Conference has
amended the measure by deleting its substance and inserting
therefor, provisions that:

     (1)  Allow for the use of excess investment earnings of the
          Employees' Retirement System by state and county
          employers to provide funding for retroactive pay
          raises;

     (2)  Provide that this use of excess investment earnings of
          the Employees' Retirement System shall be a one-time
          only provision and shall be effective only until
          July 1, 2001; 

     (3)  Specify that the savings realized by the State and
          counties shall be used exclusively for funding
          retroactive cost items for contracts expiring on
          June 30, 1999, and funds not utilized be returned to
          the Employees' Retirement System; 

     (4)  Prohibit enactment of any future law that applies
          excess actuarial investment earnings of the Employees'
          Retirement System against the amounts contributed by
          employers under section 88-123, Hawaii Revised
          Statutes; and

     (5)  Require all departments and agencies to identify their
          goals, objectives, and policies to provide a basis for
          determining priorities and allocating limited public
          funds and human resources.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1518, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 1518, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Co-Chair       ROD TAM, Co-Chair

 
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______________________________     ______________________________
TERRY NUI YOSHINAGA, Co-Chair      ANDREW LEVIN, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKASONE, Member               CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
NATHAN SUZUKI, Member              BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
MARK MOSES, Member                 BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
                                   ______________________________
                                   JONATHAN CHUN, Member
                                   
                                   
                                   
                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Member
                                   
                                   
                                   
                                   ______________________________
                                   DAVID Y. IGE, Member
                                   
                                   
                                   
                                   ______________________________
                                   BOB NAKATA, Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY ANDERSON, Member

 
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