STAND. COM. REP. NO. 2288

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2755
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2755 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     ASBESTOS PROPERTY DAMAGE LITIGATION,"

begs leave to report as follows:

     The purpose of this bill is to make an emergency
appropriation for the asbestos property damage litigation,
presently set for trial in June 2000.

     In 1993, the State commenced litigation against four former
manufacturers for asbestos contained in hundreds of state
buildings.  The case is complicated, protracted, and very costly,
as it has been vigorously defended by the manufacturers.  As a
number of companies manufactured similar products during the same
time period, the proof of product identification is very
technical and based primarily on the results of electron
microscopy performed by expert scientists.  The State has had to
engage numerous qualified experts and consultants on an hourly
fee basis.  The Department of the Attorney General testified in
favor of this bill.

     This case has been a major and prolonged undertaking for the
State, and is slated to go to trial in June 2000.  Your Committee
finds that the requested emergency appropriation will allow the
State to pay its experts and consultants for the intensive trial

 
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                                   STAND. COM. REP. NO. 2288
                                   Page 2


preparation and to present its proof and rebut the defendants'
testimony at trial.

     Your Committee has amended the bill by adding a provision
regarding the exceeding of the general fund expenditure and by
making technical nonsubstantive changes. 

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2755, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2755, S.D. 1, and
be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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