STAND. COM. REP. NO. 1358-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3045
                                     S.D. 1
                                     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 Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 3045, S.D. 1, H.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:

     (1)  Give the State Auditor subpoena power; and

     (2)  Create an Auditor's "working papers" privilege under
          Hawaii law.

     Testimony in support of this bill was provided by the State
Auditor.  Testimony in opposition to this bill was provided by
the State Attorney General, the Department of Accounting and
General Services, and the Judiciary.

     Your Committee finds that subpoena powers will facilitate
the Auditor's information gathering process.

     Consistent with routine practice, your Committee deems it
prudent to defer enacting a specific "auditor's working papers
privilege" pending referral to the Hawaii Supreme Court Standing
Committee on the Rules of Evidence for consideration and
recommendation.


 
 
 
                                 STAND. COM. REP. NO. 1358-00
                                 Page 2

 
     Your Committee further finds it appropriate to clarify that
confidentiality remains intact after issuance of reports, and
extends to the Auditor's agents, employees, consultants, and
contractors.
 
     Your Committee has amended this bill by:

     (1)  Specifying that the Auditor may apply to the circuit
          court to enforce a subpoena;

     (2)  Deleting the "working papers privilege";

     (3)  Listing "agents" as well as employees, consultants, and
          contractors among those whose working papers are
          entitled to confidentiality;

     (4)  Replacing the provision dealing with disclosure that
          reads "any person or in response to any judicial,
          quasijudicial, or administrative process" with "any
          person or entity";

     (5)  Deleting the release of liability provision;

     (6)  Conforming the penalty provision by including persons
          subpoenaed by the Auditor; 

     (7)  Including accounts, records, files, and other evidence
          to the list of items that, if improperly withheld from
          the Auditor, may cause criminal prosecution; and

     (8)  Making technical, nonsubstantive changes for clarity
          and style.
     
     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 3045, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 3045, S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair