STAND. COM. REP. NO. 3054

Honolulu, Hawaii

RE: S.B. No. 3142

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 3142, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER INFRASTRUCTURE,"

beg leave to report as follows:

The purpose and intent of this measure is to facilitate the timely disbursement of certain federal grant moneys.

Specifically, this measure authorizes the Director of Health to transfer federal capitalization grant moneys between the Water Pollution Control Revolving Fund and the Drinking Water Treatment Revolving Loan Fund.

Your Committees received written comments in support of this measure from the Department of Health and Ulupono Initiative.

Your Committees received written comments in opposition to this measure from one individual.

Your Committees find that the United States Environmental Protection Agency oversees the State's implementation of the Water Pollution Control Revolving Fund and the Drinking Water Treatment Revolving Loan Fund programs and may withhold or delay future capitalization grants if those programs struggle to expeditiously disburse grant moneys. Your Committees further find that the ability to move moneys between the two funds will help facilitate timely disbursement of grants.

Your Committees note the testimony of the Department of Health, which requested certain amendments to this measure, including amendments that:

(1) Provide that the Attorney General's certification that the transfer of moneys between the funds is permitted by state law be required only for the initial transfer;

(2) Provide to the Governor or the Governor's designee, rather than the Director of Health, the authority to transfer funds; and

(3) Clarify that the fund transfer available under this measure is not limited to only the capitalization grant.

Your Committees respectfully ask that these requests be considered as this measure moves forward in the legislative process.

Your Committees have amended this measure by:

(1) Correcting a spelling error; and

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

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3142, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3142, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair