CONFERENCE COMMITTEE REPORT NO. 123

                            Honolulu, Hawaii
                                            , 1999

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

     "A BILL FOR AN ACT RELATING TO GOVERNMENT," 

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 improve various aspects of
the functioning of State government including:

     (1)  Authorizing the Attorney General to charge state
          agencies for the collection of delinquent accounts;

     (2)  Changing the fee for copying government records that is
          charged to the public;

     (3)  Authorizing 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; 


 
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     (4)  Creating a structure for managing the Kapolei
          Recreational Sports Complex and makes the Stadium
          Authority responsible for managing it;

     (5)  Exempting sales to foreign diplomats from the general
          excise tax and accommodations furnished to foreign
          diplomats from the transient accommodations tax;

     (6)  Establishing the Hawaii Performance Partnerships Board
          to develop community outcomes of well-being and to
          increase the use of performance measurement;

     (7)  Authorizing fees, fines, and other administrative
          charges collected in the management of public lands to
          be deposited in the Special Land and Development Fund;

     (8)  Providing 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;

     (9)  Exempting the counties from the public notice
          requirements of Chapters 103D and 103F, Hawaii Revised
          Statutes, until December 31, 2000;

    (10)  Authorizing the Director of Finance to invest state
          funds in federal Agricultural Mortgage Corporation
          notes and bonds rather than joint stock farm loan
          bonds;

    (11)  Exempting the construction of air cargo operations
          facilities from the general excise tax and use tax; and 

    (12)  Establishing a structure for a special savings account
          program known as the Individual Development Account
          Program.

     Your Committee on Conference finds that currently the county
charters require public notices to be published daily.  In 1998,
the expectation of the counties prior to the procurement for the
publishing of public notices was that the contract would be
awarded to a daily publication.  Due to the fact that the
procurement of public notices for the State and counties was
based on total circulation rather than how often the periodical
was published, the contract was awarded to a weekly publication.
Your Committee on Conference finds that this measure is needed in
order to give the counties time to change their county charters
to weekly publication.


 
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     Your Committee on Conference has amended this measure by:

     (1)  Deleting the section authorizing the Attorney General
          to charge state agencies for the collection of
          delinquent accounts;

     (2)  Amending the section on costs of copying government
          records as follows:

          (A)  Designating the mininium cost of copying
               government records and other data to five cents
               per page; and 

          (B)  Deleting amendments to the section on the cost of
               copies of any tax return filed with the State;

     (3)  Deleting specific county positions from the Barbers
          Point Naval Air Station redevelopment commission and
          replacing them with four county department directors
          appointed by the mayor;
     
     (4)  Deleting the section on the lost and found money or
          property at the Kapolei recreational sports complex;
     
     (5)  Deleting the section exempting sales to foreign
          diplomats from the general excise tax and
          accommodations furnished to foreign diplomats from the
          transient accommodations tax;

     (6)  Amending the section on the special land and
          development fund as follows:

          (A)  Adding language on designated uses of the special
               land and development fund that allows moneys from
               the fund to be used for permanent or temporary
               staff positions for the planning and management of
               all lands under the Board of Land and Natural
               Resources; and 

          (B)  Adding language that requires the director of
               finance to transfer the unexpended balance of the
               industrial park special fund as of the close of
               business on June 30, 1999 to the credit of the
               special land and development fund;

     (7)  Amending the publication of notice section by:

          (A)  Adding the language, "Notwithstanding any other
               statute, law, charter provision, ordinance, or
               rule to the contrary";


 
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          (B)  Adding language that requires the Comptroller to
               follow chapter 103D, Hawaii Revised Statutes, when
               determining publication of notices for all
               government agencies; and 

          (C)  Deleting the language that exempts counties from
               the provisions of section 1-28.5, HRS, until
               December 31, 2000;

     (8)  Deleting the section exempting the construction of air
          cargo operations facilities from the general excise tax
          and use tax;

     (9)  Amending the section on Individual Development Accounts
          by:

          (A)  Designating five project years as the time an
               applicant may apply for funding if the State lacks
               the resources to fund an individual development
               account project;

          (B)  Limiting grant money to each individual
               development account program to five years; and  

          (C)  Adding language that requires the Department of
               Taxation to submit proposed legislation
               establishing a tax credit for individual
               develpment accounts to the legislature no later
               than the convening of the regular session of 2000; 

    (10)  Amending current law regarding the interagency federal
          revenue maximization revolving fund by:

          (A)  Deleting the June 30, 1999, sunset date in section
               15 of Act 11, Special Session Laws of Hawaii 1995;
               and

          (B)  Appropriating funds out of revenues of the
               interagency federal revenue maximization revolving
               fund for expenses, including the creation and
               hiring of temporary staff, related to the recovery
               of federal fund reimbursements under section
               29-24, HRS; and

    (11)  Making technical, nonsubstantive changes for clarity
          and style.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 646, S.D. 2, H.D. 3, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 646, S.D. 2, H.D. 3, C.D. 1.

 
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                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
ROMY M. CACHOLA, Co-Chair          ROD TAM, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Co-Chair      CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
PAUL T. OSHIRO, Co-Chair           ANDREW LEVIN, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
EZRA R. KANOHO, Co-Chair           COLLEEN HANABUSA, Member
                                   
                                   
                                   
______________________________     ______________________________
SCOTT K. SAIKI, Member             DAVID Y. IGE, Member
                                   
                                   
                                   
______________________________     ______________________________
COLLEEN MEYER, Member              CAL KAWAMOTO, Member
                                   
                                   
                                   
                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY ANDERSON, Member


 
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