1

          1

          2

          3             SENATE/HOUSE OF REPRESENTATIVES

          4                  THE 21ST LEGISLATURE

          5                     INTERIM OF 2001

          6

          7

          8

          9   JOINT SENATE-HOUSE INVESTIGATIVE COMMITTEE HEARING

         10                    DECEMBER 3, 2001

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         12

         13

         14  Taken at the State Capitol, 415 South Beretania,

         15  Conference Room 325, Honolulu, Hawaii commencing at

         16  9:11 a.m. on Monday, December 3, 2001.

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         18

         19

         20  BEFORE:   MYRLA R. SEGAWA, CSR No. 397

         21            Notary Public, State of Hawaii

         22

         23

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          1  APPEARANCES:

          2

          3  Senate-House Investigative Committee:

          4                  Co-Chair Senator Colleen Hanabusa

          5                  Co-Chair Representative Scott Saiki

          6                  Vice-Chair Senator Russell Kokubun

          7                  Vice-Chair Representative Blake Oshiro

          8                  Representative Ken Ito

          9                  Representative Bertha Kawakami

         10                  Representative Bertha Leong

         11                  Senator Norman Sakamoto

         12                  Senator Sam Slom

         13

         14  Also Present:

         15                  Special Counsel James Kawashima

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          1                  P R O C E E D I N G S

          2              CO-CHAIR REPRESENTATIVE SAIKI:  Members,

          3  we'd like to convene our joint investigative

          4  committee to investigate the State's efforts to

          5  comply with the Felix consent decree.  We'll begin

          6  with roll call.

          7              CO-CHAIR SENATOR HANABUSA:  Co-Chair

          8  Saiki?

          9              CO-CHAIR REPRESENTATIVE SAIKI:  Present.

         10              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

         11  Kokubun?

         12              VICE-CHAIR KOKUBUN:  Here.

         13              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

         14  Oshiro?

         15              VICE-CHAIR OSHIRO:  Here.

         16              CO-CHAIR SENATOR HANABUSA:

         17  Senator Buen is excused.  Representative Ito?

         18              REPRESENTATIVE ITO:  Here.

         19              CO-CHAIR SENATOR HANABUSA:

         20  Representative Kawakami?

         21              REPRESENTATIVE KAWAKAMI:  I.

         22              CO-CHAIR SENATOR HANABUSA:

         23  Representative Leong?

         24              REPRESENTATIVE LEONG:  Here.

         25              CO-CHAIR SENATOR HANABUSA:






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          1  Representative Marumoto is excused.  Senator Matsuura is

          2  excused.  Senator Sakamoto?

          3              SENATOR SAKAMOTO:  Here.

          4              CO-CHAIR SENATOR HANABUSA:  Senator Slom?

          5              SENATOR SLOM:  Here.

          6              CO-CHAIR SENATOR HANABUSA:  We have a

          7  quorum.

          8              CO-CHAIR REPRESENTATIVE SAIKI:  Thank

          9  you, Members.  Members, the Co-Chairs would like to

         10  recommend that we move to convene an executive

         11  session for the following purposes.  First, to

         12  receive and review the draft report of this committee

         13  and to discuss possible amendments to the draft

         14  report; second, to consult with our committee special

         15  counsel; third, to discuss the possibility of

         16  authorizing further subpoenas; fourth, to discuss the

         17  timetable and overview of our investigation; and

         18  finally, to discuss any other procedural requirements

         19  concerning our draft report.

         20              We will convene next door at Room 325,

         21  and we will reconvene our public hearing in this room

         22  at 1:30 p.m. today.  Is there any discussion?

         23              If not, we'll take a roll call vote.

         24              CO-CHAIR SENATOR HANABUSA:  Members, this

         25  is the motion to convene in executive session.






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          1  Co-Chair Saiki?

          2              CO-CHAIR REPRESENTATIVE SAIKI:  Yes.

          3              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

          4  Kokubun?

          5              VICE-CHAIR KOKUBUN:  I.

          6              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

          7  Oshiro?

          8              VICE-CHAIR OSHIRO:  I.

          9              CO-CHAIR SENATOR HANABUSA:

         10  Representative Ito?

         11              REPRESENTATIVE ITO:  I.

         12              CO-CHAIR SENATOR HANABUSA:

         13  Representative Kawakami?

         14              REPRESENTATIVE KAWAKAMI:  I.

         15              CO-CHAIR SENATOR HANABUSA:

         16  Representative Leong?

         17              REPRESENTATIVE LEONG:  I.

         18              CO-CHAIR SENATOR HANABUSA:

         19  Representative Marumoto is excused.  Senator Sakamoto?

         20              SENATOR SAKAMOTO:  Yes.

         21              CO-CHAIR SENATOR HANABUSA:  Senator Slom?

         22              SENATOR SLOM:  I.

         23              CO-CHAIR SENATOR HANABUSA:  Motion has

         24  passed.

         25              CO-CHAIR REPRESENTATIVE SAIKI:  Members,






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          1  we'll recess and we'll reconvene our public hearing

          2  today at 1:30 today.  Thank you.

          3              (Recess from 9:13 a.m. to 2:05 p.m.)

          4              CO-CHAIR REPRESENTATIVE SAIKI:

          5  Members, we'd like to reconvene our hering.  We have a

          6  couple of motions that we'd like to raise today.

          7              First, Members, you have all received

          8  copies of our investigative committee's draft report,

          9  and at this point the Co-Chairs would like to move

         10  that this committee accept the draft report.  Is

         11  there any discussion?

         12              If not, we'll take a roll call vote.

         13              CO-CHAIR SENATOR HANABUSA:  Co-Chair

         14  Saiki?

         15              CO-CHAIR REPRESENTATIVE SAIKI:  Here.

         16              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

         17  Kokubun?

         18              VICE-CHAIR KOKUBUN:  I.

         19              CO-CHAIR SENATOR HANABUSA:  Vice-Chair

         20  Oshiro?

         21              VICE-CHAIR OSHIRO:  I.

         22              CO-CHAIR SENATOR HANABUSA:

         23  Representative Ito?

         24              REPRESENTATIVE ITO:  I.

         25              CO-CHAIR SENATOR HANABUSA:






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          1  Representative Kawakami?

          2              REPRESENTATIVE KAWAKAMI:  I.

          3              CO-CHAIR SENATOR HANABUSA:

          4  Representative Leong?

          5              REPRESENTATIVE LEONG:  I.

          6              CO-CHAIR SENATOR HANABUSA:

          7  Senator Slom?

          8              SENATOR SLOM:  I.

          9              CO-CHAIR SENATOR HANABUSA:  Is accepted.

         10  Members, the second motion which the Co-Chairs would

         11  like for you to authorize is regarding the

         12  distribution of the copies of the draft reports to

         13  persons who are subject of the witnesses that have

         14  testified at the committee hearing pursuant to Rule

         15  2.8 C and D, and it will also include anyone else

         16  who'd be an interested party or entity.

         17              What the Co-Chairs include in this

         18  authorization is the authority to the Co-Chairs to

         19  make that final list of persons who will receive the

         20  draft reports for comment.

         21              In addition, the letter which we will

         22  attach to the draft report will set forth the

         23  following information.  We are requesting that

         24  everyone's response to be appended to the report be

         25  limited to three pages single spaced.  However, if






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          1  anyone's response is in excess of three pages single

          2  spaced, they may submit such a response; however, it

          3  will not be appended to the report and we will

          4  request an executive summary that will note the fact

          5  that such a response was received and what is being

          6  appended is an executive summary.  It is intended

          7  that all responses will be made available on the web

          8  for public review as soon as we are in receipt of

          9  that.

         10              In that vein we are asking everyone to

         11  append or to send with their response a diskette

         12  which contains any information with their final

         13  response which we will be appending to the report.

         14  All responses must be in writing and received no

         15  later than December 18 by 4:30 in the afternoon to

         16  the legislative auditor's office attention to Marion

         17  Higa.

         18              Any discussions?

         19              Co-Chair Saiki has informed me that I was

         20  not clear that the executive summaries are also

         21  limited to three pages single spaced as well.

         22  Anything that will become part of that official

         23  document which is distributed as far as the responses

         24  are concerned is limited to three pages single

         25  spaced.  And again, we reiterate that that does not






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          1  limit any response to that number of pages.  It just

          2  simply says that's what is going to be appended and

          3  we will make available to the web to the public the

          4  whole response.  Any discussion, any more

          5  clarifications?  If not, Representative Saiki.

          6              CO-CHAIR REPRESENTATIVE SAIKI:  Co-Chair

          7  Hanabusa?

          8              CO-CHAIR SENATOR HANABUSA:  I.

          9              CO-CHAIR REPRESENTATIVE SAIKI:

         10  Vice-Chair Kokubun?

         11              VICE-CHAIR KOKUBUN:  I.

         12              CO-CHAIR REPRESENTATIVE SAIKI:

         13  Vice-Chair Oshiro?

         14              VICE-CHAIR OSHIRO:  I.

         15              CO-CHAIR REPRESENTATIVE SAIKI:

         16  Representative Ito?

         17              REPRESENTATIVE ITO:  I.

         18              CO-CHAIR REPRESENTATIVE SAIKI:

         19  Representative Kawakami?

         20              REPRESENTATIVE KAWAKAMI:  I.

         21              CO-CHAIR REPRESENTATIVE SAIKI:

         22  Representative Leong?

         23              REPRESENTATIVE LEONG:  I.

         24              CO-CHAIR REPRESENTATIVE SAIKI:  Senator

         25  Slom?






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          1              SENATOR SLOM:  I.

          2              CO-CHAIR REPRESENTATIVE SAIKI:  Motion

          3  passed eight I's, four excused.

          4              CO-CHAIR SENATOR HANABUSA:  Members, as

          5  we have discussed in prior hearings, we will also be

          6  reconvening again sometime after the 14th day has

          7  passed and we have received the responses, and at

          8  that time, we will be adopting the final report.  As

          9  you are all aware, we must submit the report to both

         10  houses of the legislature no later than 20 days

         11  before the legislative session begins.  Any other

         12  matters before this committee at this time?  If not,

         13  thank you.

         14              CO-CHAIR REPRESENTATIVE SAIKI:  Recess.

         15              (Hearing adjourned at 2:09 p.m.)

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          1                  C E R T I F I C A T E

          2  STATE OF HAWAII             )
                                         )  SS:
          3  CITY AND COUNTY OF HONOLULU )

          4            I, MYRLA R. SEGAWA, Notary Public, State of

          5  Hawaii, do hereby certify:

          6            That on Monday, December 3, 2001, at

          7  9:11 a.m., the hearing was taken down by me in

          8  machine shorthand and was thereafter reduced to

          9  typewriting under my supervision; that the foregoing

         10  represents, to the best of my ability, a true and

         11  correct transcript of the proceedings had in the

         12  foregoing matter.

         13            I further certify that I am not an attorney

         14  for any of the parties hereto, nor in any way

         15  concerned with the cause.

         16            DATED this  17th day of  DECEMBER 2001, in

         17  Honolulu, Hawaii.

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         19

         20

         21
                                    ______________________________
         22                         MYRLA R. SEGAWA, CSR No. 397
                                    Notary Public, State of Hawaii
         23                         My Commission Exp:  1-27-2005

         24            

         25