STAND. COM. REP. NO. 2473

Honolulu, Hawaii

RE:    S.B. No. 2411

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2411 entitled:

"A BILL FOR AN ACT RELATING TO SUBSIDIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to repeal references in the Hawaii Revised Statutes to "subsidy" or "subsidies" as a type of funding award that may be made to a private organization or individual for a public purpose.

     No testimony was submitted regarding this measure.

     Your Committee finds that no substantive difference exists in the Hawaii Revised Statutes between a "grant" and a "subsidy", and that the term "subsidy" is therefore unnecessary.

     Your Committee also finds that there are sections of the Hawaii Revised Statutes that contain the term "subsidy" or "subsidies" that are not included in this measure.  For purposes of consistency, your Committee has amended this measure to include those additional sections that contain the term "subsidy" or "subsidies".

     Specifically, the measure was amended to make conforming amendments to:

(1)  Section 6E-2, the definition of "project";

(2)  The title of chapter 42F;

(3)  Section 46-15.1(c)(3);

(4)  Section 103-53(e)(3);

(5)  Section 103F-409(b);

(6)  Section 261-6(g);

(7)  Section 302D-28(d);

(8)  Section 321-442(a); and

(9)  Section 352D-6(12).

     With regard to the amendment to section 352D-6(12), Hawaii Revised Statutes, your Committee also amended a reference to chapter 42D, Hawaii Revised Statutes, which was repealed in 1998, and replaced it with a reference to chapter 103F, Hawaii Revised Statutes, which is the current law governing health and human services purchases of services.

     Finally, your Committee has amended the measure to provide that the amendment to section 46-15.1(c), Hawaii Revised Statutes, shall not be repealed when the section is reenacted on June 30, 2015, pursuant to section 3 of Act 141, Session Laws of Hawaii 2009.

     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. 2411, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2411, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

DAVID Y. IGE, Chair