CONFERENCE COMMITTEE REP. NO. 16

Honolulu, Hawaii

, 2025

RE: S.B. No. 326

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 326, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REVOLVING FUNDS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to ensure that state revolving funds meet the self-sustainability requirement.

Specifically, this measure requires the Legislature, when establishing or reviewing a revolving fund, to ensure that the revolving fund demonstrates the capacity to be financially self‑sustainable by either:

(1) Annual projections that show that the revolving fund will be sustainable without appropriations from the general fund; or

(2) A schedule of projected collections of outstanding payments to the revolving fund.

Your Committee on Conference finds that section 37-52.4, Hawaii Revised Statutes, sets forth the requirements for state revolving funds, one of which is self-sustainability. Your Committee on Conference further finds that specifying the methods by which a fund demonstrates a capacity for self-sustainability will facilitate compliance with the statutory requirements for a revolving fund and will promote fiscal responsibility.

Your Committee on Conference has amended this measure by changing its effective date to upon the measure's approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 326, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 326, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ KYLE T. YAMASHITA Chair

____________________________ TROY N. HASHIMOTO Chair