STAND. COM. REP. NO. 3421

Honolulu, Hawaii

RE: H.B. No. 2610

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2610, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DISASTER RELIEF,"

begs leave to report as follows:

The purpose and intent of this measure is to provide disaster relief in the aftermath of the August 2023 Maui wildfires.

Specifically, this measure:

(1) Establishes a disaster relief match special fund to support the local match requirements of the Federal Emergency Management Agency Maui wildfires hazard mitigation grant program; and

(2) Appropriates moneys into the disaster relief match special fund.

Prior to the hearing on this measure, your Committee posted and made available for public review a proposed Senate Draft 2, which amends this measure by inserting as a new part II certain provisions from Senate Bill No. 3068, Senate Draft 1, which is another measure that provides relief from the devastating impacts of the August 2023 Maui wildfires. Specifically, the provisions added to the proposed Senate Draft 2:

(1) Make appropriations relating to the State's response to the Maui wildfires and statewide wildfire mitigation and response;

(2) Reauthorize certain general funded capital improvement project operating appropriations as general obligation bond funded appropriations; and

(3) Authorize the issuance of reimbursable general obligation bonds and appropriation of the bond proceeds for certain capital improvement projects in the county of Maui.

The proposed Senate Draft 2 also amended the provisions inserted from Senate Bill No. 3068, Senate Draft 1, by amending certain means of financing to provide for the appropriation of certain federal funds rather than state general funds.

Your Committee received testimony in support of the proposed Senate Draft 2 from the Department of Budget and Finance, Hawaii Housing Finance and Development Corporation, Hawaii Emergency Management Agency, and the chairperson of the Maui County Council.

Your Committee also received testimony in support of the Senate Draft 1 from the Hawaii State Hazard Mitigation Forum; Office of Climate Change, Sustainability and Resiliency of the City and County of Honolulu; Maui Chamber of Commerce; and one individual.

Your Committee finds that the disaster relief match special fund will help to ensure that local matching moneys are available to draw down federal moneys offered to the State by the Federal Emergency Management Agency's Maui wildfire hazard mitigation grant program. Your Committee further finds that this funding will help to rebuild the areas affected by the 2023 Maui wildfires in a resilient manner.

Your Committee has amended this measure by adopting the proposed Senate Draft 2 and further amending the measure by:

(1) Amending the appropriation of general funds for recovery costs for the Maui wildfires disaster by:

(A) Requiring the Governor to provide notice to the Legislature no less than fourteen days prior to the date of any transfer of moneys to other state agencies; and

(B) Requiring the Auditor to conduct annual audits of contracts procured under the appropriation and submit reports of its findings and recommendations to the Legislature prior to the convening of the Regular Sessions of 2026 and 2027;

(2) Amending the appropriation of revolving funds to the Hawaii Housing Finance and Development Corporation for fiscal year 2024-2025 from $14,046,265 to $16,022,225;

(3) Clarifying that certain new capital improvement projects authorized by the measure are under the jurisdiction of the Hawaii Housing Finance and Development Corporation; and

(4) Correcting the amount of reimbursable general obligation bond funds authorized for capital improvement projects for temporary housing, Maui; and modular housing for temporary units, Maui.

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 H.B. No. 2610, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2610, H.D. 1, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair