STAND. COM. REP. NO. 817

Honolulu, Hawaii

RE:    S.B. No. 1111

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1111, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER INFRASTRUCTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide the Department of Health with greater flexibility in administering the drinking water treatment revolving loan fund and the water pollution control revolving fund.

     Specifically, this measure:

(1)  Authorizes the Department of Health to transfer up to thirty-three percent of capitalization grant moneys between the drinking water treatment revolving loan fund and the water pollution control revolving fund;

(2)  Requires the transfer of moneys between the funds to be approved by the Attorney General; and

(3)  Requires the Director of Health to amend the operating agreements or other parts of the capitalization grant agreements for the funds to document the method used to transfer moneys.

Your Committee received written comments in support of this measure from the Department of Health, County of Hawaii Department of Environmental Management, Honolulu Board of Water Supply, and one concerned individual.

     Your Committee finds that there is increasing demand for the replacement of aging drinking water and wastewater system infrastructure in the State, the delay of which could pose short- and long-term health hazards for consumers.  Your Committee believes that allowing the Department of Health to transfer moneys between the drinking water treatment revolving loan fund and the water pollution control revolving fund will allow the Department to more efficiently direct moneys towards drinking water or wastewater infrastructure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1111, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair