STAND. COM. REP. NO. 992-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3045
                                     S.D. 1
                                     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 Legislative Management, to which was
referred S.B. No. 3045, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to clarify the scope of the
confidentiality of the Auditor's working papers.

     Specifically, this bill:

     (1)  Extends the confidentiality privilege beyond the
          issuance date of reports or studies; and

     (2)  Covers working papers handled by the Auditor, employees
          in the Auditor's office, as well as independent
          contractors and consultants.

The privilege may be applied against judicial, quasijudicial, and
administrative processes, and, at the same time, releases the
Auditor, its employees, contractors, and consultants, from
liability as a result of disclosure compelled by legal process.

     Your Committee finds that clarification of the privilege is
necessary to protect the continued integrity of the Auditor's
work product.


 
 
 
                                 STAND. COM. REP. NO. 992-00
                                 Page 2

 
     This bill also specifies that the Auditor's disclosure of
certain portions of the working papers does not constitute a
waiver of the privilege of the remainder of the working papers.

     The Auditor submitted testimony in support of this bill.
The Department of Accounting and General Services, Judiciary, and
Attorney General opposed this bill.

     Your Committee has amended this bill by:

     (1)  Adding that disclosure may be withheld from any person,
          not only to judicial, quasijudicial, or administrative
          processes;

     (2)  Authorizing the Auditor to issue subpoenas and subpoena
          duces tecum compelling the appearance and sworn
          testimony of any person as well as the production of
          accounts, books, records, etc., relating to an audit or
          investigation; and

     (3)  Adding accounts, files, or documents that may be
          examined or searched. 

     Your Committee notes that the same immunity and judicial
review privileges being accorded to the Auditor by this bill have
for many years have been vested in the Ombudsman under section
96-17, Hawaii Revised Statutes.

     As affirmed by the record of votes of the members of your
Committee on Legislative Management that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 3045, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
3045, S.D. 1, H.D. 1, and be referred to the Committee on
Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Legislative
                                   Management,



                                   ______________________________
                                   EZRA KANOHO, Chair