STAND. COM. REP. NO. 1942

Honolulu, Hawaii

, 2025

RE: S.B. No. 326

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred S.B. No. 326, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide specific ways the Legislature may demonstrate the capacity of a revolving fund to be financially self-sustaining when it determines whether the fund should be established or continued.

Your Committee received testimony in support of this measure from the Department of Budget and Finance. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that existing law requires the Legislature, in establishing or reviewing a revolving fund to determine whether it should be continued, to ensure that the revolving fund serves a need; reflects a clear connection between benefits or programs funded and sources of revenue; provides an appropriate means of financing; and demonstrates the capacity to be financially self-sustaining. By adding specificity to the ways the Legislature may demonstrate the capacity of a revolving fund to be financially self-sustaining, this measure encourages fiscal prudence and responsibility.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

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 S.B. No. 326, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 326, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

KYLE T. YAMASHITA, Chair