LTC Trust Fund; Tobacco Settlement Moneys; State Income Tax
Creates the long-term care trust fund. Requires deposit of 5% of tobacco settlement moneys for 10 years and reallocates remaining moneys. Increases state income tax by 50 cents per $100 adjusted gross income for deposit into trust fund.
HOUSE OF REPRESENTATIVES
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII
A BILL FOR AN ACT
relating to the long-term care trust fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
LONG-TERM CARE TRUST FUND
§ -1 Definitions. As used in this chapter, unless the context clearly requires otherwise:
"Board" means the board of trustees of the long-term care trust fund.
"Fund" means the long-term care trust fund.
§ -2 Long-term care trust fund; establishment, purposes. There is established in the state treasury, the long-term care trust fund. The fund shall be under the control of the board and consist of:
(1) Five per cent of all tobacco settlement moneys pursuant to section 328L-2; and
(2) A long-term care tax surcharge of 50 cents per $100 of Hawaii adjusted gross income.
The director of finance shall have custody of the fund.
§ -3 Board of trustees. The board of trustees of the long-term care trust fund shall consist of members, who shall be appointed by the governor as provided in section 26-34. All trustees shall be appointed for terms of four years, except that the terms of the trustees first appointed shall be two or four years as designated by the governor at the time of appointment. The trustees shall elect a chairperson from among their members. The board and staff under section -5 shall be placed in the department of budget and finance for administrative purposes only.
§ -4 Powers of the board. Except as otherwise provided by law, the board of trustees of the long-term care trust fund may:
(1) Sue and be sued;
(2) Have a seal and alter the same at its pleasure;
(3) Develop and implement a long-term care financing strategy that will offer maximum benefits to Hawaii residents;
(4) Collect, receive, hold, and disburse all moneys payable to or by the long-term care trust fund;
(5) Pay money from the fund to effectuate the fund's purpose, including costs incurred in establishing and administering the fund;
(6) Invest the fund's principal and income without distinction between principal and income and keep the fund's assets invested in real or personal property including securities;
(7) Manage the fund's assets, except to the extent that the management of the assets is delegated to qualified investment managers;
(8) Appoint investment managers to manage, acquire, or dispose of any of the fund's assets. The investment manager shall be registered as an investment advisor under the Investment Advisers Act of 1940 (chapter 856, 54 Stat. 789), or a bank as defined in the Investment Advisers Act of 1940 (chapter 856, 54 Stat. 789), or an insurance company qualified to manage, acquire, or dispose of any asset of similar plans under the laws of more than one state, and shall acknowledge in writing that it is a fiduciary of the system and shall be liable for breaches of any applicable fiduciary responsibility, obligation, or duty imposed by this chapter;
(9) Develop and maintain a long-term care information data system to support and effectuate the purposes of this chapter; and
(10) Do all the things necessary and convenient to carry out the purposes of the fund.
§ -5 Executive director; employees. (a) The fund shall employ an executive director to be appointed by the board, without regard to chapters 76, 77, and 89. The executive director shall serve at the pleasure of the board, and shall act as the chief executive officer of the fund and manage and conduct the day-to-day business of the fund according to the directions and policies of the board.
(b) The fund may employ, without regard to chapters 76 and 77, and may at its pleasure dismiss such persons as it finds necessary for the performance of its functions and fix their compensation."
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Long-term care tax surcharge. There is hereby imposed a long-term care tax surcharge on the state adjusted gross income of every taxpayer at the rate of 50 cents per $100 of state adjusted gross income. The tax collected pursuant to this section shall be deposited into the long-term care trust fund."
SECTION 3. Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The fund shall be used for the purpose of receiving and appropriating the tobacco settlement moneys as follows:
Forty] Thirty-five per cent shall be appropriated into the emergency and budget reserve fund under section 328L-3;
(2) Thirty-five per cent shall be appropriated to the department for purpose of section 328L-4; [
(3) Twenty-five per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5[
(4) Beginning July 1, 2001 until June 30, 2011, five per cent shall be appropriated into the long-term care trust fund under section -2. Beginning July 1, 2011, the five per cent appropriated under this paragraph shall be appropriated into the emergency and budget reserve fund under paragraph (1), raising the percentage under paragraph (1) to forty per cent."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act, upon its approval, shall take effect for taxable years beginning after December 31, 2000.