STAND. COM. REP. NO.  1599

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 292

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 292, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FUNDS,"

begs leave to report as follows:

     The purpose of this bill is to support general state services by moving moneys in excess of the required balances within certain special and revolving funds to the general fund.

     The University of Hawaii (UH), Department of Health (DOH), Department of Accounting and General Services, Honolulu Department of Information Technology, Honolulu Police Department, Campus Center Board at UH Manoa, Board of Publications at UH Manoa, and several concerned individuals opposed this bill.  The Judiciary, Department of Land and Natural Resources, Department of the Attorney General, Department of Agriculture, Hawaii Housing Finance and Development Corporation, The Nature Conservancy, Hawaii Insurers Council, Catholic Charities Hawaii, The Mutual Housing Association of Hawaii, Community Alliance Partners, EAH Housing, and several concerned individuals submitted comments.

     Your Committee has amended this bill by replacing it contents with those of H.B. No. 1731, H.D. 1.  As amended, this bill generates additional general funds to ensure the delivery of services statewide by reallocating for two years the distribution of moneys from the Hawaii Tobacco Settlement Special Fund, including depositing a portion of those moneys into the general fund as follows:

     (1)  24.5 percent to the Emergency and Budget Reserve Fund;

     (2)  25 percent to DOH for the Children's Health Insurance Program and for health promotion and disease prevention programs;

     (3)  2 percent to the Hawaii Tobacco Prevention and Control Trust Fund;

     (4)  23.5 percent to the University Revenue-Undertakings Fund; and

     (5)  25 percent to the general fund.

     As amended, this bill will take effect on July 1, 2009.

     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 S.B. No. 292, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 292, S.D. 1, 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