STAND. COM. REP. NO. 354

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 103

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 103 entitled:

 

"A BILL FOR AN ACT RELATING TO THE DISPOSITION OF EXCESS GENERAL FUNDS AUTHORIZED UNDER ARTICLE VII, SECTION 6, OF THE CONSTITUTION OF THE STATE OF HAWAII,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to implement the state constitutional amendment in S.B. No. 2554, Regular Session of 2016, that authorizes the disposition of excess general fund revenues to pre-pay general obligation bond debt service, other post-employment benefit liability, and pension liability.

 

     Your Committee received testimony in support of this measure from the Department of Budget and Finance, the Employees' Retirement System, and one individual.  Your Committee received comments on this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

 

     Your Committee finds that S.B. No. 2554, Regular Session of 2016, proposed a constitutional amendment to provide the Legislature alternatives in the disposition of excess general revenues in addition to its then existing options, which included providing a tax refund or tax credit, or depositing excess funds into one or more emergency and budget reserve funds.  The constitutional amendment was ratified on November 8, 2016.  Your Committee finds that this measure is necessary to implement Article VII, section 6, of the Hawaii State Constitution.

 

     Your Committee has amended this measure by:

 

     (1)  As recommended by the EUTF, clarifying that the option to pre-pay other post-employment benefit liability requires payments to reduce future annual required contributions, not the amortization period;

 

     (2)  Inserting an effective date of January 7, 2059, to encourage further discussion; and

 

     (3)  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 Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 103, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 103, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

________________________________

GILBERT S.C. KEITH-AGARAN, Chair