Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2237 entitled:

begs leave to report as follows:

The purpose of this measure is to give the Comptroller the option of depositing moneys received from the settlement of claims or losses of the State into a trust account under the control of the affected agency.

Your Committee finds that present law requires those moneys, in particular, insurance proceeds, to be deposited into the state risk management revolving fund. This means that when it 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 those 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 making technical nonsubstantive amendments for the purposes of clarity and style.

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 S.B. No. 2237, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2237, S.D. 1.