STAND. COM. REP. NO. 1393

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1499
                                     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

Sir:

     Your Committee on Human Services and Housing, to which was
referred S.B. No. 1499, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE RANDOLPH-SHEPPARD
     REVOLVING ACCOUNT,"

begs leave to report as follows:

     The purpose of this bill is to allow the State Committee of
Blind Vendors (Blind Vendors) to use moneys from the Randolph-
Sheppard Revolving Account (Revolving Account) to hire private
attorneys.

     The Blind Vendors testified in support of this measure.  The
Department of the Attorney General (AG) testified in opposition
to this measure.  The Department of Human Services and the
National Federation of the Blind commented on this measure.

     Your Committee understands the Blind Vendor's position to
seek private attorneys for representation, yet is cognizant of
the AG's concerns.  Your Committee has, therefore, amended this
measure to create a system of checks and balances to determine if
and when outside counsel is appropriate by:

     (1)  Authorizing the Blind Vendors to hire private attorneys
          only after:

          (A)  The Blind Vendors seek representation from the AG;
               and

 
 
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          (B)  The AG deems itself unable or unwilling to provide
               representation; or

          (C)  The Blind Vendors find the AG's representation
               inadequate;

     (2)  Giving the AG 30 days to determine if the AG is unable
          or unwilling to provide representation;

     (3)  Appropriating $30,000 to carry out the purposes of the
          Revolving Account; and

     (4)  Making technical, nonsubstantive amendments for clarity
          and style.

     Your Committee is unclear as to whether or not the practice
of a state-funded or state-sponsored program, board, or
commission to hire outside counsel to sue another state entity is
in the public interest and a mechanism for resolving disputes.
Your Committee would like to address the larger issue of
appropriate outside hire of attorneys if the situation warrants.
The extent to which this situation could or does occur is
unknown, and therefore, your Committee requests the Legislative
Reference Bureau (LRB) to examine cases in which a state-funded
or state-sponsored program, board, or commission has filed suit
against another state entity to determine:

     (1)  The frequency of this occurrence;

     (2)  The conditions under which the suits are or could be
          filed; and

     (3)  In each case, whether the AG represented the plaintiff
          and, if not, the reasons for outside counsel.

     Your Committee also requests LRB to report its findings to
the Legislature no later than twenty days prior to the convening
of the Regular Session of 2000.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1499, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1499, S.D. 1, H.D. 1, and be referred to the Committee on
Finance.


 
                                 STAND. COM. REP. NO. 1393
                                 Page 3

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair