Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2459, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation in the current fiscal year to pay for the State's share of costs related to public employees' social security and Medicare expenses.

Your Committee finds that Act 259, Session Laws of Hawaii 2001, authorized the transfer of up to $15,000,000 to the Department of Business, Economic Development and Tourism for operations and events costs of the Hawaii Convention Center, and that such transfer was necessary to support continuing operations of the Convention Center.

Your Committee further finds that a portion of the funds transferred to operate the Convention Center included $10,125,000 in funds budgeted for payment of social security and Medicare expenses for public employees. Your Committee acknowledges that the State is required by law to fund these public employee costs.

Upon further consideration, your Committee has made a technical amendment by adding a section to declare that the appropriation in this measure will exceed the expenditure ceiling for fiscal year 2001-2002.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2459, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2459, S.D. 2.