STAND. COM. REP. NO. 626

Honolulu, Hawaii

RE:    S.B. No. 1270

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1270, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HURRICANE RELIEF FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to appropriate Hawaii hurricane relief fund moneys into the general fund to make funds available to balance the State's budget for fiscal year 2011-2012 and maintain the levels of programs determined to be essential for education, public health, and public welfare.

     Your Committee received testimony in support of this measure from Kalbert K. Young, Director, Department of Budget and Finance.  Your Committee received testimony in opposition to this measure from Lloyd Lim, Executive Director, Hawaii Hurricane Relief Fund Board; and Myoung Oh, Government Affairs Director, Hawaii Association of Realtors.  Your Committee received comments on this measure from Gordon I. Ito, State Insurance Commissioner, Department of Commerce and Consumer Affairs.

     Your Committee finds that when Hurricane Iniki struck Kauai on September 11, 1992, it caused $1,600,000,000 in damage and left many insurance companies unable to obtain reinsurance and incapable of providing insurance to the people of Kauai.  The Hawaii hurricane relief fund was formed to provide hurricane insurance in Hawaii when private insurers were unwilling to do so.  Your Committee also finds that the Hawaii hurricane relief fund has been dormant since the end of 2002.

     Your Committee has amended this measure by:

     (1)  Deleting the dollar amount of the minimum required balance of the Hawaii hurricane relief fund and leaving it unspecified; and

     (2)  Deleting the expenditure authorization provision.

     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. 1270, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1270, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair