STAND. COM. REP. NO. 2561

Honolulu, Hawaii

RE: S.B. No. 3067

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 3067 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to move the Hurricane Reserve Trust Fund into the state treasury and make other housekeeping amendments relating to the Fund.

Your Committee received testimony in support of this measure from the Department of Budget and Finance and Department of Defense.

Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the state treasury maintains an investment pool consisting of participating state accounts. Your Committee further finds that the funds within the state treasury are prudently managed to achieve the investment objectives of safety, liquidity, and yield, in priority order, and that the pooling of funds enables the achievement of economies of scale, while simultaneously enhancing the State's liquidity position. Presently, the Hurricane Reserve Trust Fund is established outside the state treasury under the direction of the Hawaii Hurricane Relief Fund Board, which has invested the fund in a bank trust division for the past several years and operation has been dormant. Therefore, this measure places the Hurricane Reserve Trust Fund within the state treasury, to best serve the interests of the State and to better align its investment objectives of safety, liquidity, and yield.

Your Committee has amended this measure by:

(1) Restoring language in existing law that requires remittance of a certain portion of general excise tax and public employer contributions; and

(2) Repealing language in existing law that grants certain authority and discretion to the Hawaii Hurricane Relief Fund Board over the moneys deposited in the Hurricane Reserve Trust Fund.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3067, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3067, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

JARRETT KEOHOKALOLE, Chair