STAND. COM. REP. NO.  822

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 471

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 471 entitled:

"A BILL FOR AN ACT RELATING TO THE EMERGENCY AND BUDGET RESERVE FUND,"

begs leave to report as follows:

The purpose of this measure is to prohibit the Legislature from making an appropriation from the Emergency and Budget Reserve Fund (Fund):

     (1)  Of more than 50 percent of the balance of the Fund in a single fiscal year;

     (2)  Exceeding 10 percent of the total discretionary funds appropriated by the Legislature in the same fiscal year; and

     (3)  For a succeeding fiscal year unless the State has collected or is projected to collect less tax revenue in the current fiscal year, when compared to the immediately preceding fiscal year.

The Department of Budget and Finance and Pew Charitable Trusts provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Clarifying that "discretionary funds" means the total amount of general fund moneys appropriated or authorized by the Legislature; and

     (2)  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. 471, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 471, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair