STAND. COM. REP. NO.483
Honolulu, Hawaii
, 2001
RE: S.B. No. 838
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 838 entitled:
"A BILL FOR AN ACT RELATING TO HAWAII HURRICANE RELIEF FUND,"
begs leave to report as follows:
The purpose of this measure is to prohibit the escheat of moneys in the hurricane reserve trust fund to the state general fund and to ensure the continuation of the Hawaii hurricane relief fund.
In addition, this bill prohibits the dissolution of the Hawaii hurricane relief fund except by enactment of law, and clarifies the investment of funds to maximize the fund's corpus.
Your Committee agrees with the intent of this bill, and finds that the Hawaii hurricane relief fund should not be dissolved, except upon the enactment of a law to repeal chapter 431P, Hawaii Revised Statutes, and that current funds should be reinvested to increase the corpus to an amount that could provide sufficient coverage for a major hurricane.
Upon further consideration, your Committee has amended this bill by:
(1) Adding language from S.B. No. 1056 to establish the new century scholarships program endowment special fund to provide scholarships, stipends, and mandatory fees for academically deserving students in the University of Hawaii system, and appropriating an unspecified amount of funds out of the special fund to implement that program. Language from that bill regarding the emergency and budget reserve fund has not been included;
(2) Adding language from S.B. No. 703 to require the Hawaii hurricane relief fund to implement a grant program to provide financial assistance to residential property owners who install wind damage mitigation devices, and appropriating an unspecified amount of funds for that purpose;
(3) Adding language specifying that the board of directors of the Hawaii hurricane relief fund is to accumulate sufficient moneys, as determined by the board, in reserve in the fund to settle claims from a covered event. Investment income derived from that fund is to be used for the following purposes:
(A) per cent is to be deposited into the Hawaii new century scholarship program endowment special fund;
(B) per cent is to be used to provide grants to residential property owners for installation of fund-approved wind damage mitigation devices that lessen the probability of property loss due to strong winds; and
(C) per cent is to be reinvested in the fund to maximize the fund corpus;
(4) Changing the effective date from July 1, 2001 to July 1, 2050, to facilitate additional discussion on this measure; and
(5) Making technical, nonsubstantive changes for the purposes of clarity.
As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 838, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 838, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
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____________________________ RON MENOR, Chair |
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