Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

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. 2237, S.D. 1, H.D. 1, entitled:

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.

Your Committee finds that present law requires moneys received from settlement of claims or losses, in particular, insurance proceeds, to be deposited into the state risk management revolving fund under control of the Comptroller. This means that when an agency sustains a loss, the agency must cover the loss by diverting funds from existing agency appropriations. The agency must then wait for an emergency appropriation to be passed before its insurance proceeds can be released to the agency from the revolving fund. Your Committee finds that the affected agency can be reimbursed in a more timely fashion if those insurance proceeds are deposited directly into a trust account under that agency's control.

Your Committee has amended this measure by changing the effective date to July 1, 2006.

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. 2237, 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. 2237, S.D. 1, H.D. 1, C.D. 1.