STAND. COM. REP. NO. 3059

Honolulu, Hawaii

RE: S.B. No. 3068

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 Ways and Means, to which was referred S.B. No. 3068 entitled:

"A BILL FOR AN ACT MAKING APPROPRIATIONS FOR WILDFIRE RECOVERY,"

begs leave to report as follows:

The purpose and intent of this measure is to make various appropriations to support the State's continued response to the August 2023 Maui wildfires.

Your Committee received written comments in support of this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Department of Transportation, Department of Land and Natural Resources, and Department of Budget and Finance.

Your Committee finds that the $200,000,000 that was previously transferred into the Major Disaster Fund will be spent or obligated before the end of the current fiscal year. However, the Executive Branch expects to spend an additional $400,000,000 in fiscal year 2023-2024 to address ongoing costs of the Maui wildfire response, primarily covering noncongregate sheltering costs, which brings the State's total obligation to approximately $600,000,000. Additionally, the $600,000,000 total does not include the $65,000,000 to pay for settlements through the One Ohana Fund.

Your Committee further finds that the costs for fiscal years 2024-2025, 2025-2026, and 2026-2027 are still unclear since both a temporary and a permanent housing plan have not yet been presented to the Legislature, which may result in additional noncongregate shelter expenses.

Your Committee notes that the lapse date for the funds deposited into the Major Disaster Fund may require an extension to meet the ongoing cash flow needs and expenses of the State.

Your Committee believes that these undetermined costs could potentially decrease the State's carryover balance in fiscal year 2024-2025 to critically low levels that impact the State's six‑year financial plan.

Your Committee has added $175,560,000 in capital improvement project funds to this measure, consisting of a $63,560,000 general obligation bond authorization to the County of Maui and two capital improvement project authorizations consisting of $40,000,000 and $75,000,000 for the Hawaii Housing Finance and Development Corporation. Your Committee intends that these moneys be expended for infrastructure and temporary housing at the Lahaina Recreational Center, Maui Land and Pineapple in Napili, and Front Street area.

Your Committee requests that the Department of Budget and Finance provide timely reports to the Legislature on expenditures authorized in this measure.

Lastly, your Committee notes the Department of Budget and Finance's request of $237,915,320 in general fund appropriations.

Your Committee has amended this measure by:

(1) Increasing from $30,000,000 to $230,000,000 the investment capital appropriation to the Hawaii Housing Finance and Development Corporation for fiscal year 2024-2025;

(2) Appropriating $900,000 from the Public Utilities Commission Special Fund for consultant contracts for utility dockets;

(3) Authorizing $63,560,000 in reimbursable general obligation bonds for capital improvement projects involving infrastructure to be expended by the County of Maui;

(4) Authorizing $40,000,000 in reimbursable general obligation bonds for capital improvement projects involving temporary housing in West Maui to be expended by the Hawaii Housing Finance and Development Corporation;

(5) Authorizing $75,000,000 in reimbursable general obligation bonds for capital improvement projects involving modular housing for temporary units in West Maui to be expended by the Hawaii Housing Finance and Development Corporation; and

(6) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 3068, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3068, S.D. 1.

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

________________________________

DONOVAN M. DELA CRUZ, Chair