STAND. COM. REP. NO. 864-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2739
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2739, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CORRECTIONS,"

begs leave to report as follows:

     The purpose of this bill is to reduce prison overcrowding by
appropriating $1 as the State's intent to proceed with the
private development of a correctional facility that is financed
by public funds or private funds, or a combination.

     The Department of Public Safety, the United Public Workers,
AFSCME, Local 646, AFL-CIO, The Chamber of Commerce of Hawaii,
the Hawaii Island Chamber of Commerce, and the Big Island
Business Council testified in support of this measure.  The
Hawaii Island Economic Development Board supported the intent of
this bill, and the Department of Budget and Finance offered
comments.

     Your Committee has amended this bill by:

     (1)  Authorizing the Governor to negotiate for the
          development of a private correctional facility;

     (2)  Specifying that this facility be capable of housing
          both minimum and medium security inmates;

     (3)  Identifying the location for this facility;


 
 
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     (4)  Specifying that the facility accommodate a minimum of
          1,700 live-in inmates;

     (5)  Requiring that an extensive rehabilitation and
          treatment program as well as a variety of correctional
          industry and educational programs be an integral part
          of the facility;

     (6)  Requiring that an unspecified portion of the facility's
          annual operating budget be earmarked for rehabilitation
          and treatment programs;

     (7)  Requiring that the funds for program personnel shall
          not be overly disproportionate to the funds for
          programmatic services;

     (8)  Appropriating the sum of $1 for the preparation of an
          environmental impact statement for the development of
          the private correctional facility; and

     (9)  Making technical, nonsubstantive amendments for the
          purpose of consistency.

     It is your Committee's intent that alternative methods of
treatment be used at this facility, including those that are
culturally sensitive.

     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 H.B. No.
2739, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2739, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair