STAND. COM. REP. NO. 2728

Honolulu, Hawaii

RE:    S.B. No. 2554

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Judiciary and Labor and Ways and Means, to which was referred S.B. No. 2554 entitled:

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII, SECTION 6, OF THE HAWAII CONSTITUTION, RELATING TO THE DISPOSITION OF EXCESS REVENUES,"

beg leave to report as follows:

     The purpose and intent of this measure is to propose a constitutional amendment to include in the disposition of excess general fund revenues the appropriation of general funds for the pre-payment of general obligation bond debt service, pre-payment of pension or other post-employment benefit liabilities, or both.

     Your Committees received testimony in support of this measure from the Department of Budget and Finance.

     Your Committees find that this constitutional amendment will provide the Legislature alternatives in the disposition of excess revenues in addition to its existing options, which include providing a tax refund or tax credit, or depositing excess funds into one or more emergency and budget reserve funds.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2554 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Ways and Means,

________________________________ JILL N. TOKUDA, Chair

________________________________ GILBERT S.C. KEITH-AGARAN, Chair