STAND. COM. REP. NO.633-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2654

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2654, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

The purpose of this bill, as received, is to repeal the sunset provision of the law allowing special purpose revenue bonds to be issued to assist not-for-profit corporations that provide health-care facilities to the general public.

Hawaii Pacific Health provided testimony in support of this measure.

Your Committee finds that unprecedented circumstances have left few options to address the current budget shortfall and prevent further losses in education, public health, social programs, public safety, and environmental protection. Without access to additional resources, numerous programs would be devastated. Your Committee recommends that a portion of the money in the Hurricane Reserve Trust Fund be transferred to the General Fund in order to maintain services important to the people of Hawaii.

However, it is equally important to maintain the integrity of the Hurricane Relief Fund and ensure that homeowners are prepared when – not if – the next hurricane hits the islands. To that end, your Committee has authorized the issuance of general obligation bonds to recapitalize the Hurricane Reserve Trust Fund should the need exist.

Additionally, strengthening homes is an effective way of reducing losses due to hurricanes and has the added benefit of reducing insurance costs. Your Committee has provided for a loss mitigation grant program to assist homeowners acquire loans to strengthen homes against hurricanes.

Your Committee has amended this measure by deleting its substantive contents and replacing it with provisions to:

(1) Establish a three-year pilot program to provide grants to certain property owners for installation of wind-resistive devices that reduce the severity of property loss from strong winds;

(2) Authorize the issuance of $100,000,000 in general obligation bonds for fiscal year 2002-2003 for deposit into the Hurricane Reserve Trust Fund;

(3) Appropriate $100,000,000 from the Hurricane Reserve Trust Fund for deposit into the General Fund; and

(4) Appropriate funds for numerous state programs that face severe reduction or elimination due to the $300,000,000 shortfall in projected revenues for the State in fiscal biennium 2001-2003.

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. 2654, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2654, H.D. 2, and be placed on the calendar for Third Reading.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair