Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1466
                                        S.D. 1

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


     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 1466 entitled: 


begs leave to report as follows:

     The purpose of this measure is to require the Comptroller to
collect from state agencies their portion of benefits received
under the State Risk Management Revolving Fund.  It additionally
requires the Comptroller to prepare a report each fiscal year to
agencies and the Legislature about the amount appropriated to and
collected from the agencies.

     Testimony in support of the intent of this measure was
received from the Department of Accounting and General Services

     Your Committee finds that collecting from agencies for
benefits received can be an effective tool to hold agencies
responsible for their losses and provide them with an incentive
to control their risks and losses. 

     Your Committee has amended the measure to change the
effective date of the measure to July 1, 2000, and to change the
requirement of the DAGS report to the Legislature from twenty
days to one hundred forty-five days before each legislative
session.  Your Committee also deleted subsections (a), and (d) to
(g) of section 41D-4, Hawaii Revised Statutes, as unnecessary to
the measure, since those subsections are not being amended.

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                                   STAND. COM. REP. NO. 225
                                   Page 2

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 1466, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1466, S.D. 1, and be referred to the Committee on Ways and

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,

                                   ROD TAM, Chair

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