Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.C.R. No. 113 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct an audit of methodologies used by state agencies with ceded land leases under their jurisdiction to verify ceded land revenues.

In conducting this audit, the Auditor is requested to place particular emphasis on reliability and on consistency with generally accepted accounting principles.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs. The Board of Land and Natural Resources and the Department of Transportation commented on this measure.

Your Committee finds an assessment of accounting methods will provide clarity and enhance progress toward a determination of the correct share of ceded lands revenues to be paid to the Office of Hawaiian Affairs for the betterment of conditions of native Hawaiians.

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 concurs with the intent and purpose of S.C.R. No. 113, and recommends that it be referred to the Committee on Finance.