STAND. COM. REP. NO. 254

Honolulu, Hawaii

RE:    S.B. No. 101

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 101 entitled:

"A BILL FOR AN ACT RELATING TO STATE FUNDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to comply with the mandate of Article VII, Section 6, of the Hawaii State Constitution regarding the disposition of excess general fund revenues.

     Specifically, this measure:

     (1)  Makes appropriations for the pre-payment of the State's unfunded accrued pension liability and annual required contribution to cover its other post-employment benefits (OPEB) liability; and

     (2)  Makes an appropriation to the emergency and budget reserve fund.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance and one individual.

     Your Committee finds that S.B. No. 2554, Regular Session of 2016, proposed a constitutional amendment which was approved by the voters on November 8, 2016, to allow the Legislature the option to appropriate excess general fund revenues for the pre-payment of the State's pension or OPEB liability while retaining the option to deposit excess general fund revenues into a fund that serves as a temporary supplemental source of funding for the State in times of an emergency, economic downturn, or unforeseen reduction in revenue.  Your Committee finds that this measure makes appropriations in compliance with Article VII, Section 6, of the Hawaii State Constitution, as amended.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 101 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

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GILBERT S.C. KEITH-AGARAN, Chair