STAND. COM. REP. NO. 351-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1865
                                     H.D. 1




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1865 entitled: 

     "A BILL FOR AN ACT RELATING TO BOARDS AND COMMISSIONS,"

begs leave to report as follows:

     The purpose of this bill is to provide a mechanism for the
expeditious removal of unnecessary vocational and professional
regulatory boards and commissions by authorizing the abolishment
of a board or commission that had been established by statute
upon the filing of a report by the State Auditor (Auditor)
recommending the elimination of the board or commission, unless
the Auditor's recommendation is disapproved by resolution passed
by two-thirds of either the Senate or the House of
Representatives, or by concurrent resolution.

     This bill also provides that upon adjournment sine die of
the Legislature that received the report, and if the Legislature
has not disapproved the Auditor's recommendation to abolish the
board or commission, no further appointments are to be made to
the board or commission except as subsequently authorized by
statute.

     The Contractors Association of Kauai, the General
Contractors Association of Hawaii, the Building Industry
Association of Hawaii, the General Contractors Association of
Hawaii, the Hawaii Leeward Planning Conference, the National
Federation of Independent Business, and the Kona-Kohala Chamber
of Commerce testified in support of the measure.  The State

 
 
                                 STAND. COM. REP. NO. 351-00
                                 Page 2

 
Auditor, the Chamber of Commerce of Hawaii, and the Big Island
Business Council testified in support of the intent of the
measure.  The Attorney General and the Hawaii Nurses' Association
testified in opposition to this measure.  The Department of
Commerce and Consumer Affairs and the Hawaii Hotel Association
submitted comments on this measure.

     Your Committee has amended this bill by:

     (1)  Expanding legislative oversight and input in response
          to the Auditor's recommendation to abolish a board or
          commission;

     (2)  Specifying that if the Governor's disapproval is sent
          to both houses of the Legislature, and the House and
          Senate disagree by concurrent resolution, the Auditor's
          recommendations to abolish the board or commission
          stand;

     (3)  Establishing criteria in the Auditor's consideration to
          determine whether to abolish a board or commission; and

     (4)  Making technical, nonsubstantive amendments for clarity
          and style.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1865, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1865, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair