STAND. COM. REP. NO.  305-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 1905

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1905 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to set aside general excise tax revenues to meet previous obligations of the State.  Specifically, this bill requires up to:

     (1)  $63,000,000 in state general excise tax revenues to be deposited into a separate account in the general fund to address delayed payments of state contributions to the Employees' Retirement System (ERS) and Hawaii Employer-Union Health Benefits Trust Fund that were not paid for fiscal year 2008-2009; and

     (2)  $275,000,000 in state general excise tax revenues to be deposited into a separate account in the general fund to address delayed payments of state tax refunds that were not paid to balance the supplemental executive budget for fiscal year 2009-2010.

     The Department of Budget and Finance and ERS Board of Trustees submitted comments on this bill.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1905 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

KARL RHOADS, Chair