STAND. COM. REP. NO. 272

Honolulu, Hawaii

RE:    S.B. No. 942

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 942 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to resolve a conflict in statutory language by amending section 328L-3, Hawaii Revised Statutes, which establishes the emergency and budget reserve fund, to remove a reference to a specific percentage of Hawaii tobacco settlement special fund moneys to be deposited into the fund.

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

     Your Committee received testimony in opposition to this measure from one individual.

     Your Committee finds that Act 118, Session Laws of Hawaii 2015, amended section 328L-2, Hawaii Revised Statutes, to reduce the share of tobacco settlement special fund moneys to be deposited into the emergency and budget reserve fund from 24.5 per cent to 15 per cent, effective July 1, 2015.  However, the Act did not make a conforming amendment to section 328L-3, Hawaii Revised Statutes, which also states that 24.5 per cent of tobacco settlement special fund moneys are to be deposited into the emergency and budget reserve fund.  As a result, sections 328L-2 and 328L-3, Hawaii Revised Statutes, currently reflect

different percentages of the tobacco settlement special fund moneys that are to be deposited into the emergency and budget reserve fund.

     Your Committee finds that this measure, which provides for the deposit of "moneys received" from the tobacco settlement moneys into the emergency and budget reserve fund, without setting forth a specific percentage of the moneys to be deposited, will prevent future discrepancies and inadvertent errors.

     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. 942 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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JILL N. TOKUDA, Chair