STAND. COM. REP. NO. 2437

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3045
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 3045 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
Auditor's working papers privilege.

     Specifically, this bill extends the privilege beyond the
issuance date of reports or studies, covers working papers
handled by both employees as well as independent contractors,
applies the privilege against judicial, quasijudicial, and
administrative processes, and at the same time releases the
Auditor from liability resulting from 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.

     Your Committee has amended this bill by specifying that the
Auditor's disclosure of certain working papers does not
constitute a waiver of the privilege as to other working papers
and to extend the immunity from liability to the Auditor's
employees and contractors.


 
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                                   STAND. COM. REP. NO. 2437
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
3045, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 3045, S.D. 1, and
be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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