STAND. COM. REP. NO. 3401

Honolulu, Hawaii

RE: H.B. No. 1586

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Public Safety, Intergovernmental, and Military Affairs, to which was referred H.B. No. 1586, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO DISASTER RESPONSE,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify that federal funds received by the State for reimbursement of disaster-related expenses, except for federal funds received by the State to reimburse the Department of Education for disaster-related expenses, shall first be applied to the originating fund used by the department or agency for payment of disaster relief expenses; provided that if the original appropriation has lapsed, the funds shall be returned to the general fund;

(2) Require the Administrator of the Hawaii Emergency Management Agency to submit an annual report to the Legislature on the status of federal reimbursement moneys for disaster response, and disaster response spending by each agency; and

(3) Appropriate funds to the Department of Defense for disaster response efforts.

Your Committee received comments on this measure from the Hawai‘i Emergency Management Agency, Department of Budget and Finance, and Department of Education.

Your Committee finds that the State has been historically vulnerable to natural disasters, including hurricanes, earthquakes, volcanic eruptions, storm surges, tsunamis, and wildfires. Various state departments and agencies have been affected by natural disasters and emergencies and have spent departmental funds to respond to incidents as necessary. Many departments apply for reimbursement for the costs of emergency response measures from the Federal Emergency Management Agency. However, disaster reimbursement may take months or years, depending on the federal government response. The delay in disaster reimbursements has resulted in the holding of federal reimbursement funds in the major disaster fund, rather than the funds being returned to the originating department or agency. This measure will allow for quicker reimbursements to state departments and agencies that have expended funds due to disasters and will allow for the State to match federal emergency reimbursement funds.

Your Committee has amended this measure by:

(1) Restoring statutory language that provides the Hawaii Emergency Management Agency with a rollover provision for unspent funds under $2,500,000; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Public Safety, Intergovernmental, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1586, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1586, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Intergovernmental, and Military Affairs,

________________________________

CLARENCE K. NISHIHARA, Chair