Kane grilled about
transfer of library fees

The funds, designated for individual libraries,
were instead used to pay Baker & Taylor

By Debra Barayuga
Star-Bulletin

Lawmakers yesterday questioned the state librarian about fees that were improperly transferred from a library special fund to the state general fund to pay for Baker & Taylor services.

The violation was noted in a critical state auditor's management report on the library system released last week.

By law, enhanced fees charged by the libraries -- for services such as photocopying and video cassette rentals -- are to be deposited into a special fund to be administered by state Librarian Bart Kane.

Kane and the Library Advisory Committee then are supposed to determine how much each library will get back for their enhanced services programs.

In her report, state auditor Marion Higa said Kane violated the statute, which requires him to return the fees to individual libraries.

During fiscal year 1996-97, Kane withdrew $295,000 from the special library fund to pay Baker & Taylor for services, with an additional $100,000 transferred to the state's general fund, according to the report.

Kane said no concerns of illegality or impropriety were raised in meetings with the governor, the Department of Budget and Finance and the Attorney General's office about the plan to transfer money to the general fund, which was accepted by Gov. Ben Cayetano.

"If it was illegally improper, we're all guilty of it," Kane told the Senate Education Committee.

In her report, Higa recommended Kane establish criteria and guidelines to implement the enhanced service program and ensure money is distributed and appropriately spent by branch libraries, as required by law.

Kane told lawmakers he will appoint a team specifically to come up with program guidelines and said each branch library starting in July will receive its share of enhanced fees, along with training on how the money can be used.

In other action, Kane said a Board of Education committee will review and approve any proposed library expenditure plans for fiscal year 1999, including the position of special assistant to the state librarian.

Higa urged Kane and the school board to examine the position, currently held by John Penebacker, to see if it is really needed.

Common Cause urges investigation of Kane

A citizens watchdog group is urging the state attorney general to investigate, and if warranted, prosecute the state librarian for alleged violations of state procurement laws.

Larry Meacham, executive director of Common Cause Hawaii, said no legal action has been taken since the Supreme Court ruled in August that state librarian Bart Kane had acted in "bad faith" in prematurely awarding a $595,453-a-year automation contract to Ameritech Library Services against the directions of the state procurement officer.

"Mr. Kane got impatient and didn't follow all the procedures," Meacham said.

"There's reasons for these laws -- for taxpayers to get the best value for their dollars."

Carl Corporation, the unsuccessful bidder, appealed the awarding of the contract, saying Ameritech was given an unfair advantage in the bidding process.

Deputy attorney general John Dellera said the procurement violations are on appeal to the Supreme Court. "The case remains to be finally adjudicated."

A motion by Carl attorney's to terminate the contract was denied, Kane said.

"A hearing has been scheduled in April to determine what is the best interests of the state as regards this matter."

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Bill to ax Social Security
numbers on licenses

Hawaii drivers are vulnerable to fraud
when they use licenses for identification

By Pat Omandam
Star-Bulletin

Downtown resident Lynne Matusow doesn't mind providing store clerks with identification when she writes a check, but just don't ask for her drivers license.

"Usually if I can't get away with a credit card, I'll just pull out a passport," she said. "There's no reason for them to have a Social Security number."

The second most prominent feature on Hawaii's drivers licenses -- next to that unflattering photo -- may be eliminated this legislative session if Matusow and others, such as Lt. Gov. Mazie Hirono, get their way.

Hirono yesterday personally supported a bill that would prohibit the use of an individual's Social Security number as the license's identification number.

With banks and credit card companies reporting an increase in Social Security number fraud, Hirono said Hawaii drivers should be protective of their numbers to ensure that information such as credit histories and medical records are not illegally obtained.

Hawaii is one of only three states that still includes Social Security numbers on drivers licenses. There are about 900,000 licensed drivers in the state.

"The easy accessibility and widespread use of Social Security numbers make Hawaii consumers vulnerable to invasions of privacy and fraud," Hirono told the House Transportation Committee.

The committee forwarded House Bill 2347 to the Judiciary Committee for consideration. While state agencies generally supported the plan, the city opposed it, because it would force them to spend $450,000 to develop a new computer system that would generate unique drivers license numbers in lieu of the Social Security numbers.

David Mau, deputy administrator of the city Motor Vehicle Licensing Division, told Transportation Chairman Kenneth Hiraki (D, Downtown Honolulu) that there have been several court decisions since 1968 supporting the use of the number on drivers licenses.

Mau stressed only police officers can demand to see a drivers license, suggesting people not use the card for other identification purposes.

But that is a hard habit to break, according to state Consumer Protection Director Jo Ann Uchida.

Uchida told lawmakers the drivers license is the most common form of identification in the state, especially when writing checks. It is extremely difficult to protect a Social Security number when it is prominently displayed on the face of the license, she said.

"In an age in which one unfortunate exchange with a dishonest clerk could result in identity theft, removing Social Security numbers from drivers licenses will significantly reduce the number of times this personal information is inadvertently revealed to strangers," Uchida said.

Other state agencies, like the Department of Transportation, support removing the number from licenses, but question whether the bill should preclude its use as a way to identify the person in a computer.

Lester Nakamura, the Judiciary's telecommunication and information services director, said the change would significantly impact two computer applications for the courts: the jury system and the traffic system.

Without the Social Security number, people may receive multiple juror questionnaires. And the jury payroll system would have to be modified, Nakamura said.

Meanwhile, Matusow also protects herself by leaving blank spaces on forms that ask for her Social Security number. People usually back off when she says it's illegal to ask for it.

"It is relatively easy for criminals to create a false identification if you have someone's Social Security number and mother's maiden name," she said.

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Aki upset at having to apologize
over gambling charges

By Pat Omandam
Star-Bulletin

State Sen. James Aki says the news media is misinterpreting the Senate actions he voluntarily agreed to as a result of his no-contest plea to felony gambling charges.

And he is upset that members of the Senate want him to apologize for the incident, even though Aki (D, Waianae) said he did nothing wrong and was never found guilty of any wrongdoing.

The Senate Majority Caucus spent about 50 minutes behind closed doors yesterday discussing their colleague's concerns.

Afterward, Aki told reporters he's worried the public and his constituents will believe he was sanctioned, even though he voluntarily agreed to the recommendations made by his attorney.

Aki was granted a deferred acceptance of his no-contest plea in November after he was indicted on gambling charges in July 1996.

Senate President Norman Mizuguchi (D, Aiea) on Tuesday issued a report stating that Aki agreed to relinquish membership from two key Senate committees, as well as abide by Senate travel restrictions, as a result of the case.

Aki said he's uncertain about a letter of explanation he must also submit to the Senate.

Senate Judiciary Co-Chairman Avery Chumbley (D, Kihei) had remarked that Aki use it to apologize for his actions.

"When a fellow senator says I have to apologize, I want to know what I ought to apologize for ," Aki said yesterday.

"If there was evidence that I did wrong, I would gladly apologize. But if I apologize according to what some senators in this body want me to do, then I would be admitting guilt. And that is the worst thing I can do for myself," he said.

Aki said the Senate must resolve this problem so it can go on with business.

The caucus met again late yesterday, but did not discuss the matter.

Senate Minority Leader Whitney Anderson (R, Kailua-Waimanalo), however, did say frustration was high and hinted more on it would be said today.

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DBEDT should handle permits
for environment, lawmaker says

By Keith Kosaki
Star-Bulletin

Moving environmental permitting functions from the state Health Department to the Department of Business, Economic Development and Tourism will help streamline the process, state Rep. Terry Yoshinaga says.

Yoshinaga (D, McCully), chairwoman of the House Energy and Environmental Protection Committee, yesterday said she will introduce legislation that would move the permitting functions to DBEDT.

She also proposed tax credits for recycling and air-pollution reducing equipment, along with a plan to market Hawaii's environmental technology companies.

Environmental permit applicants currently must go to different branches within the Health Department; the process takes anywhere from "30 days to five years," she said.

Under her proposal, a single branch within DBEDT would determine specific processing times and issue all necessary permits.

Yoshinaga asserted DBEDT's problem-solving philosophy would be more beneficial than the Health Department's "reactive" approach. She said permits would not be "rubber-stamped," or standards compromised.

Health Department spokesman Patrick Johnston said the department has taken steps to streamline the process and is concerned about potential conflicts of interest.

For her other proposals, Yoshinaga said Hawaii can develop an export industry by marketing environmental technology products to Asia. Her plan calls for a task force to design a start-up plan, followed by an application for a Council on State Governments grant to implement it. Similar plans have worked on the mainland, she said.