STAND. COM. REP. NO. 954

Honolulu, Hawaii

RE: S.B. No. 1064

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1064, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DAM AND APPURTENANCE SAFETY,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the improvement or removal of deficient dams and appurtenances.

Specifically, the measure:

(1) Establishes the dam and appurtenance improvement or removal grant program to provide funding to private dam owners for plans, design, construction, and equipment used to improve or remove deficient dams and appurtenances;

(2) Establishes the dam and appurtenance improvement or removal revolving fund to support the awarding of grants under the foregoing program; and

(3) Appropriates moneys for certain operating expenses and the establishment of two full-time equivalent (2.0 FTE) positions in the Department of Land and Natural Resources.

Your Committee received written comments in support of this measure from the Department of Land and Natural Resources and Hawaii Farm Bureau.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that many privately owned dams and appurtenances are not properly maintained and may be hazardous to public safety. Your Committee also finds that as the costs of improvement or removal are often prohibitive, a grant program to provide funding for these costs, as proposed by this measure, may be appropriate.

Your Committee recognizes that the Department of Land and Natural Resources has requested a one-time seed funding of $15,000,000 in general funds into the dam and appurtenance improvement or removal revolving fund for use as the initial funding source.

Your Committee finds that the new dam and appurtenance improvement or removal revolving fund may not comply with section 37-52.4, Hawaii Revised Statutes, particularly with respect to the requirement that a revolving fund demonstrate the capacity to be self-sustaining. Your Committee notes that legislative appropriations are the sole source of funding for the revolving fund and, consequently, for the grant program. Accordingly, it appears more appropriate to fund the grant program directly through legislative appropriations rather than through a new revolving fund.

Your Committee has amended this measure by:

(1) Deleting the establishment of the dam and appurtenance improvement or removal revolving fund;

(2) Specifying that the two full-time equivalent (2.0 FTE) positions established by the measure are permanent positions; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 1064, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1064, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair