CONFERENCE COMMITTEE REP. NO. 236-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 514

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 514, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose and intent of this measure is to dispose of excess tax revenues pursuant to article VII, section 6, of the Hawaii State Constitution.

Specifically, the measure:

(1) Provides an income tax credit of an unspecified amount to every resident individual taxpayer;

(2) Provides an income tax refund of an unspecified amount to every qualifying resident taxpayer;

(3) Appropriates an unspecified sum of moneys for deposit into the other post-employment benefits trust fund; and

(4) Appropriates an unspecified sum of moneys for deposit into the emergency and budget reserve fund.

Your Committee on Conference finds that article VII, section 6, of the Hawaii State Constitution requires the Legislature to dispose of excess general fund revenues whenever the state general fund balance at the close of each of two successive fiscal years exceeds five percent of general fund revenues for each of the two fiscal years. Your Committee on Conference finds that the general fund balance has met this threshold for two successive fiscal years, and further finds that this measure is an appropriate vehicle for fulfilling the applicable constitutional requirement.

Your Committee on Conference has amended this measure by:

(1) Removing language referring to an income tax credit;

(2) Clarifying that the income tax refund shall be provided as follows:

(A) $300 for individuals earning less than $100,000 and couples earning less than $200,000; or

(B) $100 for individuals earning $100,000 or more and couples earning $200,000 or more,

multiplied by the number of the taxpayer's qualified exemptions;

(3) Setting forth the dollar amount and the rate by which the general fund expenditure ceiling will be exceeded and the reasons for exceeding the expenditure ceiling;

(4) Appropriating $300,000,000 for deposit into the pension accumulation fund, rather than the other post-employment benefits trust fund; and

(5) Appropriating $500,000,000 for deposit into the emergency and budget reserve fund.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 514, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 514, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE Co-Chair	____________________________ DONOVAN M. DELA CRUZ Chair
____________________________ KYLE T. YAMASHITA Co-Chair