STAND. COM. REP. NO. 593-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2378

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2378, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HURRICANE RESERVE TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to move the Hurricane Reserve Trust Fund into the state treasury and make a housekeeping amendment related to the fund.

Your Committee received testimony in support of this measure from the Department of Budget and Finance. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that under existing law, the Hurricane Reserve Trust Fund is established outside of the state treasury under the direction of the Hawaii Hurricane Relief Fund's Board of Directors. The funds within the Trust Fund are invested and reinvested in accordance with the plan of operation adopted by the Board while any earned interest is transferred to the general fund each year.

Your Committee further finds that the state treasury maintains an investment pool consisting of participating state accounts. The funds in the state treasury are prudently managed to achieve the investment objectives of safety, liquidity, and yield, in priority order. The investment pool also enables the achievement of economies of scale for the effective and efficient management of funds and enhances the State's liquidity position. This measure folds the Trust Fund into the state treasury to better facilitate the achievement of state treasury investment objectives.

Your Committee has amended this measure by:

(1) Repealing the Hawaii Hurricane Relief Fund's authority to:

(A) Arrange the manner in which funds in the Hurricane Reserve Trust Fund are held; and

(B) Control the manner in which funds in the Hurricane Reserve Trust Fund are invested and reinvested through the plan of operation; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2378, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2378, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

MARK M. NAKASHIMA, Chair