Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 105
                                     S.D. 1
                                     H.D. 1

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


     Your Committee on Legislative Management, to which was
referred S.B. No. 105, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill, as received, is to create a Joint
Legislative Task Force to restructure state government.  The Task
Force would make its recommendations, including a comprehensive
implementation strategy, to the Governor.

     While within the purview of the Legislature, your Committee
prefers that government organizational restructuring be addressed
by the Executive Branch as was recently achieved in the
consolidation of various state housing entities into the Housing
and Community Development Corporation of Hawaii.  Other
recommendations previously submitted by the Administration to
reform and consolidate state agencies were not approved by the

     Accordingly, your Committee has amended this bill by
deleting its substance and inserting provisions:

     (1)  Requiring certain legislative subject matter committees
          to restructure government operations by collaborating
          with counterparts from all county councils, together
          with representatives from respective state and county

                                 STAND. COM. REP. NO. 1359
                                 Page 2

          agencies, to help achieve the purposes of Act 223,
          Session Laws of Hawaii 1998;

     (2)  Requiring all legislative subject matter committees to
          participate in reforming government operations by
          collaborating with respective state agencies to
          identify three areas conducive for significant
          productivity improvement and selecting at least one for
          interim activity;

     (3)  Indicating that this effort toward reforming specific
          government functions shall materially involve state
          employees from within the affected operations.
          Participation by legislators shall be in a "behind the
          scenes," secondary, monitoring and listening role
          rather then one of directing change; and

     (4)  Stating that any action under this bill to reform
          government shall not result in any termination or lay
          off.  Employees who may be transferred shall not
          sustain any loss in pay.  Subject to the approval of
          the Legislature, the committees may recommend early
          retirement parameters without penalty to accomplish
          desired reform and savings.

     As affirmed by the record of votes of the members of your
Committee on Legislative Management that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 105, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
105, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Legislative

                                   EZRA KANOHO, Chair