Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 12 entitled:

begs leave to report as follows:

The purpose of this bill is to appropriate $33,270,403 out of the Hawaii Tobacco Settlement Special Fund and into the Emergency Budget and Reserve Fund (EBRF) to meet the pressing needs of the people of Hawaii during the current period of economic and social crisis. Funds from the EBRF may be used to, among other things, ensure the health, safety, and welfare of Hawaii's people and provide for programs to stimulate the economy in periods of economic downturn. Your Committee, therefore, finds that this appropriation into the EBRF is necessary in order to build a healthy balance and thereby improve the State's ability to cope with this unforeseen circumstance.

The Department of Budget and Finance, Hawaii Business Roundtable, Chamber of Commerce of Hawaii, and Visitor Industry Coalition submitted testimony in support of this bill. Hawaii Medical Association submitted testimony in opposition to this bill.

The events of September 11^th not only had an impact on a national level but also affected the people of Hawaii, both directly and indirectly. As a result of these terrible acts, there has been a downturn in the national economy, as well as a dramatic decline in both the number of scheduled flights and the number of tourists coming to Hawaii. This has had a tremendous effect on Hawaii's families, as both tourism and non-tourism related industries have faltered, forcing many of Hawaii's people to file for unemployment.

Assisting Hawaii's families affected by this tragedy is one reason the Governor has convened a special session. The sense of ohana is an aspect of Hawaii that makes it such a special place. Hawaii's families have always been known for their generosity towards others but many of them will not be able to support themselves during this economic downturn. Your Committee feels that it is imperative that programs be implemented to support our ohana in getting through these difficult times.

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 H.B. No. 12 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.