CONFERENCE COMMITTEE REPORT NO. 88

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 3045
                                  S.D. 1
                                  H.D. 2
                                  C.D. 1




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

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
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. 3045, S.D. 1, H.D. 2, entitled:


     "A BILL FOR AN ACT RELATING TO THE AUDITOR,"

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 bill is to give the Auditor subpoena
powers and clarify the scope of confidentiality of the Auditor's
working papers.

     In particular, this bill authorizes the Auditor to issue
subpoenas, instead of precepts, compelling the appearance and
sworn testimony of any person, as well as subpoenas duces tecum
compelling the production of accounts, books, records, or other
evidence, if the auditor reasonably believes these may relate to

 
a                                                      SB3045 CD1
 
 
                            CONFERENCE COMMITTEE REPORT NO. 88
                            Page 2



an audit or other investigation of the Auditor.  Upon application
by the Auditor, obedience to the subpoena may be enforced by the
circuit court in the same manner as a subpoena issued by the
clerk of the circuit court.

     This bill also specifies, among other things, that the
Auditor's confidentiality provision applies to all working papers
collected by, reviewed by, and provided to the Auditor and the
Auditor's agents in the course of their duties.

     Finally, this bill makes conforming amendments to the
penalty provisions for violation and false evidence by including
persons subpoenaed by the Auditor and including accounts,
records, files, and other evidence to the list of items that, if
improperly withheld from the Auditor, may cause criminal
prosecution.

     Your Committee on Conference agrees with the need to give
the Auditor subpoena powers in order to facilitate the Auditor's
information gathering ability, and further agrees with the need
to clarify the penalty provisions to ensure compliance with the
Auditor's investigations and audits.

     Your Committee on Conference has amended this bill by:

     (1)  Deleting section 2 of the bill, which clarified the
          scope of confidentiality with respect to the Auditor's
          working papers; and

     (2)  Renumbering the remaining sections accordingly.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 3045, S.D. 1, H.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 3045, S.D. 1, H.D. 2, C.D. 1.


 
a                                                      SB3045 CD1
 
 
 
 
 
 
 
 
                            CONFERENCE COMMITTEE REPORT NO. 88
                            Page 3



                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. EZRA R. KANOHO               Sen. CAROL FUKUNAGA
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. SCOTT K. SAIKI               Sen. ANDREW LEVIN
Co-Chair                          Co-Chair



                                  _______________________________
                                  Sen. MATTHEW MATSUNAGA
                                  Co-Chair

 
a                                                      SB3045 CD1