Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 997 entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Judiciary to enter into financial agreements that do not exceed $3,000,000 without the prior approval of the State Director of Finance and the Attorney General.

Testimony in support of the bill was submitted by the Judiciary. Comments were also received from the Department of Budget and Finance (B&F).

Your Committee agrees that the bill, as presently drafted, would provide the Judiciary with the same flexibility already allowed for the University of Hawaii. Because these types of installment or lease purchase agreements are integral to everyday Judiciary operations, it is in the State's best interest to allow the Judiciary to enter into these agreements expeditiously without waiting for the approval of B&F.

However, your Committee also concurs that the Attorney General should have oversight of the financing agreements of the Judiciary and the University of Hawaii. Continued oversight is necessary to ensure that municipal lease financing transactions are not classified as debt for purposes of calculating the State's debt limit.

Accordingly, your Committee has amended this bill by:

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 H.B. No. 997, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 997, H.D. 1, and be referred to the Committee on Finance.