STAND. COM. REP. NO.  499-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2542

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2542 entitled:

"A BILL FOR AN ACT RELATING TO NON-GENERAL FUNDS,"

begs leave to report as follows:

     The purpose of this bill is to help address the fiscal year 2009-2010 budget shortfall by transferring a total of $10,000,000 in excess balances from various non-general funds.

     Specifically, this bill transfers to the general fund:

(1)  $5,000,000 from the Wireless Enhanced 911 Fund;

(2)  $500,000 from the State Motor Pool Revolving Fund;

(3)  $1,000,000 from the State Risk Management Revolving Fund;

(4)  $1,500,000 from the Medicaid Investigations Recovery Fund; and

(5)  $2,000,000 from the University of Hawaii Housing Assistance Revolving Fund.

     The Department of Budget and Finance and Ohana Health Plan testified in support of this bill.  The County of Hawaii Police Department, County of Maui Police Department, County of Kauai Fire Department, The National Emergency Number Association, The 9-1-1 Industry Alliance, CTIA-The Wireless Association, and Verizon Wireless opposed this measure.  The University of Hawaii System; Tax Foundation of Hawaii; T-Mobile USA, Inc.; AT&T; and a concerned individual provided comments.

     Your Committee has amended this measure by:

     (1)  Deleting the specific amounts to be transferred from each fund;

     (2)  Changing the effective date to July 1, 2020; and

     (3)  Making technical, nonsubstantive amendments 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. 2542, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2542, 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