STAND. COM. REP. NO.  951

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1227

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1227 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR RISK MANAGEMENT,"

begs leave to report as follows:

     The purpose of this bill is to cover unanticipated increases in property insurance premiums and deductibles by:

(1)  Making an emergency appropriation of $800,000 in general funds to the State Risk Management Revolving Fund (Fund) for fiscal year 2006-2007;

(2)  Transferring $2,926,000 in department and agency special funds to the Fund in fiscal year 2006-2007; and

(3)  Increasing the Fund's spending ceiling by $3,000,000 to $21,450,000.

     Pursuant to the requirements set forth in Article VII, section 9, of the Hawaii State Constitution, the Governor, in her Governor's Message No. 231 to the Legislature, requested immediate consideration and passage of this bill by the Legislature citing an existing critical funding shortage.

     The appropriation is to be expended by the Department of Accounting and General Services (DAGS).

     DAGS supported this bill.

     Your Committee has amended this bill by:

     (1)  Adding a new section which provides the reasons why and the amount and rate by which the appropriation contained in this bill exceeds the state spending limit to comply with statutory and constitutional requirements; and

     (2)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1227, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1227, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair