SB2742

Report Title:

Hawaii Hurricane Relief Fund

Description:

Effectuates the transfer of the balance of the Hurricane Reserve Trust Fund from the Hawaii Hurricane Relief Fund to the general fund. Immunizes the State, the Hawaii Hurricane Relief Fund, and its officers, agents or employees from liability arising out of any actions relating to the transfer of any moneys from the Hurricane Reserve Trust Fund to the general fund.

THE SENATE	S.B. NO.	2742
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO HAWAII HURRICANE RELIEF FUND.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that:

1. The September 11, 2001 terrorist attacks in New York, Pennsylvania, and Virginia have had a dramatic, negative impact on the state's economy.

2. Hawaii's gross state product was estimated to suffer losses of between $492 million and $1.3 billion, and as many as 24,000 jobs through 2002.

3. In a special November 2001 meeting of the Council on Revenues, state revenues were lowered with losses of $152 million in fiscal year 2002 and $163 million in fiscal year 2003, leading to annual budget deficits from fiscal year 2003 through fiscal year 2007, if remedial action is not taken. At their subsequent January 10, 2002 meeting, the Council retained the general fund tax growth rate forecasts made last November.

4. To address this shortfall, prudent management of state resources, such as spending restrictions and budget cuts by all state departments and identification of additional revenue sources, have been conducted to help meet the state's obligations without eliminating or drastically reducing funding for important programs.

5. In identifying additional revenues, it is necessary to use unrequired balances or excess reserves from inactive funds.

6. At the direction of the board of directors of the Hawaii hurricane relief fund, the state hurricane insurance program has been suspended effective December 1, 2001. Thus, policies are no longer being issued, and the fund has fulfilled it original purpose of making property insurance available at a time when the market for such insurance was not adequate.

7. As an inactive fund, the balance of the hurricane reserve trust fund is available to be utilized for other immediate and urgent public needs.

The legislature finds and declares that it is in the best interest of the state that monies available in the hurricane reserve trust fund of the Hawaii hurricane relief fund be deposited to the general fund. Without the transfer, state agencies will have to significantly increase their budget cuts.

The purpose of this proposal is to effectuate the transfer of the balance of the hurricane reserve trust fund to the general fund.

SECTION 2. Notwithstanding any other law to the contrary, there is appropriated out of the hurricane reserve trust fund

the sum of $213,000,000, or so much thereof as may be necessary for fiscal year 2002-2003, to be deposited into the general fund. The sum appropriated shall be expended by the Hawaii hurricane relief fund.

SECTION 3. There shall be no cause of action, claim for damages or relief, charge, or any other liability of any kind whatsoever created against the state, the fund, the fund's board and its members, or their respective agents, or employees, by or relating to the transfer of any moneys from the hurricane reserve trust fund to the general fund.

SECTION 4. This Act shall take effect on July 1, 2002.

INTRODUCED BY:	_____________________________