CONFERENCE COMMITTEE REP

CONFERENCE COMMITTEE REP. NO.91-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 706

S.D. 1

H.D. 1

C.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 706, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to:

(1) Authorize the issuance of $100,000,000 in general obligation bonds for deposit into the hurricane reserve trust fund;

(2) Transfer $100,000,000 from the hurricane reserve trust fund to the general fund to be used by the Hawaii hurricane relief fund;

(3) Appropriate funds for numerous state programs; and

(4) Establish a pilot loss mitigation grant program to provide grants for the installation of wind-resistive devices.

Your Committee has amended this measure by:

(1) Codifying the loss mitigation grant program in the insurance code;

(2) Requiring the annual interest in the hurricane reserve trust fund to be transferred to the general fund;

(3) Reducing from $5,000,000 to $2,000,000 the amount to be transferred into the loss mitigation grant fund and replacing the hurricane reserve trust fund with the general fund as the source of the transfer;

(4) Reducing from $100,000,000 to $29,000,000 the amount to be transferred from the hurricane reserve trust fund to the general fund, to be used by the Hawaii hurricane relief fund;

(5) Deleting the authorization to issue general obligation bonds for deposit into the hurricane reserve trust fund; and

(6) Deleting the appropriations to the numerous state programs.

Your Committee finds that funds from the inactive hurricane reserve trust fund should continue to be used for purposes related to the hurricane insurance law and should not be used to cover up budget shortfalls in other state programs.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 706, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 706, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ DWIGHT Y. TAKAMINE, Chair		____________________________ BRIAN T. TANIGUCHI, Chair
		____________________________ CAL KAWAMOTO, Co-Chair