Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 450
                                     S.D. 1
                                     H.D. 2

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


     Your Committee on Finance, to which was referred S.B. No.
450, S.D. 1, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to continue the on-going work to
privatize government services by:

     (1)  Specifying the tasks that the committee charged with
          developing a managed process for public-private
          competition must complete; 

     (2)  Specifying deadlines by which the committee must
          complete a draft and a final draft of the managed
          process, and a report of its findings, plans,
          implementations, and recommendations for statutory
          changes to civil service laws; and

     (3)  Reinstating the sunset dates relating to parts III and
          IV of Act 230, Session Laws Hawaii 1998 (relating to
          managed process).

     The County of Hawaii, the Big Island Business Council, the
Kona-Kohala Chamber of Commerce, the Consulting Engineers Council
of Hawaii, the Small Business Economic Revival Force, West Hawaii
Concrete, the Building Industry Association, the Hawaii Island
Contractors' Association, and Hawaii Pacific Engineers, Inc.,

                                 STAND. COM. REP. NO. 1821
                                 Page 2

testified in support of this bill.  The City and County of
Honolulu testified in support of the intent of this bill.  The
United Public Workers commented on this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for consistency.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
450, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 450,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair