STAND. COM. REP. NO. 797-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1804
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1804, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO FALSE CLAIMS,"

begs leave to report as follows:

     The purpose of this bill is to enact a state counterpart to
the Federal False Claims Act that:

     (1)  Establishes a procedure allowing government entities to
          prosecute false claims submitted for government payment
          and to encourage private parties to report false claims
          to government;

     (2)  Allows private litigants to prosecute false claims
          actions on behalf of government, if government declines
          to intervene in the case.

     Consumer Lawyers of Hawaii supported this bill.  The
Attorney General supported this bill with reservations.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for purposes of style and clarity.


 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 797-00
                                 Page 2

 
     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.
1804, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1804, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair