Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1284
                                        S.D. 2

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 1284, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to appropriate and authorize
funds to the Department of Budget and Finance, the Judiciary, and
the Hawaii Health Systems Corporation to pay the cost of items
negotiated in collective bargaining agreements with the
representatives of units 1, 2, 3, 4, 6, 8, 9, 10, and 13, and for
state officers and employees who are excluded from these units.

     Specifically, this bill appropriates and authorizes general
funds, special funds, federal funds, and other funds to pay the
retroactive (i.e., past) and continuing (i.e., present and
future) cost of these collective bargaining agreement items.

     Your Committee finds that funds were not appropriated or
authorized during past legislative sessions to pay the full cost
of some collective bargaining agreements (e.g., unit 6 -
educational officers) because of the severity of the budget
deficit.  Despite some signs of slight improvement in the State's
economy, your Committee is uncertain whether or not there are
sufficient funds to pay for all of these items at the same time.

a                                                     SB1284 SD2
                                   STAND. COM. REP. NO. 753
                                   Page 2

     Consequently, your Committee has amended this bill by
replacing all the sums appropriated or authorized with a figure
of "$2" to provide for ongoing discussion of this matter.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1284, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 1284,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

a                                                     SB1284 SD2