STAND. COM. REP. NO. 490

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 317
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Culture and the Arts, to which was
referred H.B. No. 317 entitled: 

     "A BILL FOR AN ACT RELATING TO CULTURE AND THE ARTS,"

begs leave to report as follows:

     The purpose of this bill is to improve the operations of the
Honolulu Symphony Orchestra.

     Testimony in support of this bill was received from the
Musicians' Association of Hawaii, Hawaii State AFL-CIO, and the
Honolulu Symphony.

     The State Foundation on Culture and the Arts (SFCA)
submitted testimony opposing the bill.  The SFCA concern was that
the income and capital gains from the fund should be used for the
benefit of the musicians of the Honolulu Symphony.  The SFCA also
testified that the endowment fund was funded by the taxpayers,
therefore the fund should be monitored and transfers of the
income and capital gains should be overseen by a state agency.

     Your committee finds that the mechanism adopted by Act 175,
Session Laws of Hawaii 1995, which administers the endowment fund
proceeds is no longer needed since the these proceeds are now
being directed to the Honolulu Symphony Orchestra.

 
 
 
 
 
 
                                 STAND. COM. REP. NO. 490
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     Your committee has amended the bill by:

     (1)  Declaring that the income and capital gains from the
          state endowment fund be used for the performance of
          symphonic music by the Honolulu Symphony Orchestra; and

     (2)  Requiring that the fund manager and the Honolulu
          Symphony Orchestra shall annually provide a copy of an
          external audit and financial report to the SFCA and to
          the Department of Accounting and General Services; and

     (3)  Adding a restriction that the fund manager and the
          board of trustees will administer the fund consistent
          with chapter 517D (UMIFA); and

     (4)  Making technical, nonsubstantive revisions for purposes
          of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Culture and the Arts that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 317, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 317, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Culture and the
                                   Arts,



                                   ______________________________
                                   K. MARK TAKAI, Chair