Honolulu, Hawaii
                                                     , 1999

                                   RE:  GOV. MSG. NO. 148

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred Governor's Message No. 148, submitting for study and
consideration the nomination of:

     KATHRYN S. MATAYOSHI, gubernatorial nominee as Director of
     Commerce and Consumer Affairs, for a term to expire
     December 2, 2002,

begs leave to report as follows:

     Eight administrators from the Department of Commerce and
Consumer Affairs (DCCA), the Hawaii Association of Realtors, the
Hawaii Nurses' Association, and Masunaga Farms presented
testimony in support of the nomination.  Sixteen employees of
DCCA, the Hawaii State Teachers Association, the Legislative
Committee of the Hawaii Society of Certified Public Accountants,
Arthur Andersen LLP, and six individuals, while not present,
submitted testimony in support of the nomination. 

     Upon review of the resume and other background information
submitted by the nominee, your Committee finds that Kathryn S.
Matayoshi graduated with honors with a Bachelor of Arts degree
from Carleton College and received a law degree from the
University of California, Hastings College of Law.  Ms. Matayoshi
has been a licensed attorney in the State since 1982, has
practiced general business and corporate law for over ten years,
and has served as Director of DCCA for the last four years.  Ms.
Matayoshi is active in community work with the YWCA of Oahu, the
Center for Alternative Dispute Resolution, and the Action Line
Advisory Board.

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                                   STAND. COM. REP. NO. 1733
                                   Page 2

     Your Committee received strong and unanimous support for Ms.
Matayoshi's nomination as Director of DCCA, both from within and
outside of the department.  Administrators and employees of DCCA
testified that Ms. Matayoshi is an open, responsive, intelligent,
and hard working leader who, in difficult fiscal times, has
balanced the competing interests of the fourteen divisions and
offices under her management in a fair and even-handed manner.
Professional organizations whose members are regulated by the
department and members of the business community attested to Ms.
Matayoshi's accessibility and professionalism, and fairness in
balancing the interests of consumers and business.

     Your Committee members diligently questioned the nominee
regarding her administrative qualifications, accomplishments,
visions, and priorities as Director of DCCA.  Ms. Matayoshi
testified that in her first term as as Director, document
processing time within the Business Registration Division has
been significantly reduced and licensing backlogs have been
eliminated, a licensing and business information center has been
established, regulatory laws and rules have been streamlined, and
a mediation program has been implemented with the Regulated
Industries Complaints Office.  Ms. Matayoshi further testified
that her priorities for the department include replacing outdated
computer systems that may allow for electronic filing in the
future, exploring the use of the Internet as a tool for providing
information to the public, and continuing to move the department
towards fiscal self-sufficiency.   

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee, after full consideration of the
background, character, experience, and qualifications of the
nominee, has found the nominee to be qualified for the position
to which nominated and recommends that the Senate advise and
consent to the nomination.

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                                   STAND. COM. REP. NO. 1733
                                   Page 3

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

a                                                     GM148