Report Title:

Relating to State Funds

Description:

Eliminates certain funds that do not meet the criteria for continuation, and transfers remaining balances from these special and revolving funds to the general fund. Transfers excess balances from a number of other funds to the general fund. Specifies division of excess amounts of tobacco settlement moneys appropriated for university revenue undertakings fund between "rainy day" fund and tobacco prevention and control trust fund. Exempts passenger facility charges from certain laws to prevent prohibited revenue diversion. (HB1152 SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1152

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

RELATING TO STATE FUNDS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

The purpose of this part is to repeal certain revolving and special funds that no longer serve the purpose for which they were originally established, are not an appropriate means of financing for the programs or activities, or are not financially self-sustaining. Unexpended and unencumbered balances in the funds shall be transferred to the state general fund. General fund appropriations are provided in fiscal year 2003-2004 and fiscal year 2004-2005 to finance the continuation of selected programs or activities.

SECTION 1. Section 125C-7, Hawaii Revised Statutes, is repealed.

["§125C-7 Petroleum products control fund. (a) There is established in the state treasury a revolving fund to be known as the petroleum products control fund. All fees or charges collected for services furnished or petroleum products sold, all moneys borrowed, and all contributions or grants of money received under this chapter shall be deposited in this fund; provided that the governor may establish other suitable funds in the state treasury for the deposit and separate accounting of moneys contributed or granted for special purposes under this chapter. All moneys in the petroleum products control fund are appropriated for the purposes of this chapter and shall be expended by the governor or the governor's authorized representative. The governor or the governor's authorized representative may expend and use the moneys in the petroleum products control fund to purchase petroleum products, to obtain services, equipment, materials, and supplies necessary under this chapter, and to repay moneys borrowed under this chapter.

(b) The governor's authorized representative shall submit requests to the governor to withdraw moneys from the petroleum products control fund as may be necessary for expenditure, by or under the direction of the governor, for immediate relief in the event of a shortage, or when the governor determines a shortage to be imminent and unavoidable; provided that not more than $500,000 shall be expended for the immediate relief of any single shortage.

(c) In expending the moneys, the governor's authorized representative may allot any portion thereof to any state or county agency, office, or employee, for relief of the conditions created by the shortage. The governor may determine whether a shortage contemplated by this section has occurred, or is imminent and unavoidable. The determination of the governor in this matter shall be conclusive.

(d) The governor's authorized representative may expend funds from the petroleum products control fund during ordinary petroleum market conditions for planning and preparation to respond to a shortage."]

SECTION 2. Section 201-15, Hawaii Revised Statutes, is repealed.

["[§201-15] Hawaii film facility special fund. There is established in the state treasury a fund to be known as the Hawaii film facility special fund, into which shall be deposited all moneys and fees from tenants or other users of the department's film facility, and appropriations from the legislature. All moneys in the fund are hereby appropriated for the purposes of and shall be expended by the department for the operation, maintenance, and management of its film facility."]

SECTION 3. Section 201-106, Hawaii Revised Statutes, is repealed.

["[§201-106] Clean Hawaii fund established. (a) There is established within the state treasury a special fund to be known as the clean Hawaii fund, which shall be administered and used by the department to market and promote the development of local processing and manufacturing industries for collected recycled materials. All moneys derived from the following sources to market and promote the development of local processing and manufacturing industries for collected recycled materials shall be deposited into the fund:

(1) Moneys appropriated to the fund by the legislature;

(2) Moneys received by the department from federal, state, or county agencies;

(3) Direct transfers of funds from federal, state, or county agencies;

(4) Moneys received in fees, royalties, or premiums;

(5) Private grants, contracts, or gifts;

(6) Funds from other sources; and

(7) Earnings on investments.

(b) The department may use moneys in the clean Hawaii fund to:

(1) Make grants for marketing and promoting the development of local processing and manufacturing industries for collected recycled materials, subject to the standards provided in section 42F-103;

(2) Pay for expenses, fees, or costs related to the marketing, promotion, or development of local processing, manufacturing, or purchasing of recycled products; or

(3) Pay for expenses, fees, or costs to organize, conduct, sponsor, or cooperate with others in sponsoring conferences, workshops, demonstrations, studies, or other events or functions that are related to the stimulation and formation of recycling or environmental businesses.

(c) The director may execute contracts and adopt rules pursuant to chapter 91 to implement the purposes of the clean Hawaii fund."]

SECTION 4. Subpart N of part III of chapter 201G, Hawaii Revised Statutes, is repealed.

SECTION 5. Section 209-34, Hawaii Revised Statutes, is repealed.

["§209-34 State disaster revolving loan fund. (a) There is established the state disaster revolving loan fund into which shall be deposited all moneys appropriated by the legislature to the fund, contributed or transferred to the fund, and received as repayment of loans and interest payments as provided in this part, and from which the director of business, economic development, and tourism may make loans in accordance with this part.

(b) The director may transfer moneys from the state disaster revolving loan fund established by this section to either the Hawaii capital loan revolving fund established by section 210-3 or the Hawaii innovation development fund established by section 211E-2. Moneys from the Hawaii capital loan revolving fund established by section 210-3, the Hawaii innovation development loan revolving fund established by section 211E-2, and the state disaster revolving loan fund shall be disbursed by the department or the director pursuant to chapters 209, 210, and 211E, respectively. The department or the director may transfer moneys from the Hawaii capital loan revolving fund and the Hawaii innovation development fund to the state disaster revolving loan fund for disbursement pursuant to this chapter.

(c) The total amount of moneys transferred to the state disaster revolving loan fund, the Hawaii capital loan revolving fund, or the Hawaii innovation development fund shall not exceed $1,000,000 for each respective fund within the calendar year.

(d) Notwithstanding subsection (c) to the contrary, the total amount of moneys transferred between the state disaster revolving loan fund and the Hawaii capital loan revolving fund or the Hawaii innovation development fund shall not exceed $1,000,000 within the calendar year if the governor proclaims a state disaster pursuant to section 209-2.

(e) The director shall report any transfer of funds made under this section to the legislature within ten days of the transfer.

(f) All unexpended and unencumbered moneys remaining in the state disaster revolving loan fund at the close of each fiscal year, which are deemed by the director of finance to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year, shall lapse to the credit of the general fund."]

SECTION 6. Section 211E-2, Hawaii Revised Statutes, is repealed.

["§211E-2 Hawaii innovation development fund; establishment. (a) There is established a revolving fund to be known as the Hawaii innovation development fund, that shall be administered by the department of business, economic development, and tourism for the purpose of promoting the development of new products or inventions that have direct economic benefits for Hawaii. The department shall provide low interest loans pursuant to subsection (b) to inventors for the development of their new product or invention. All moneys received as repayment of loans and interest payment shall be deposited in the fund. The department may transfer moneys from the Hawaii innovation development fund established by this section to either the state disaster revolving loan fund established by section 209-34, or the Hawaii capital loan revolving fund established by section 210-3, and moneys from these three funds shall be disbursed by the department or the director pursuant to chapters 209, 210, and 211E, respectively. The department or the director may transfer moneys from the state disaster revolving loan fund and the Hawaii capital loan revolving fund to the Hawaii innovation development fund for disbursement pursuant to this chapter:

(1) The total amount of moneys transferred to the state disaster revolving loan fund, the Hawaii capital loan revolving fund, or the Hawaii innovation development fund shall not exceed $1,000,000 for each respective fund within the calendar year;

(2) Notwithstanding paragraph (1), the total amount of moneys transferred between the state disaster revolving loan fund and the Hawaii capital loan revolving fund or the Hawaii innovation development fund shall not exceed $1,000,000 within the calendar year if the governor proclaims a state disaster pursuant to section 209-2; and

(3) The department shall report any transfer of funds made under this section to the legislature within ten days of the transfer.

(b) The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this chapter including the following:

(1) Prescribe the qualification for eligibility of loan applicants;

(2) Establish preferences and priorities in determining eligibility for loans and loan repayments;

(3) Determine the necessity for and the extent of security required in any loan;

(4) Establish the interest rates chargeable by the State; provided that each loan granted under this section shall bear a simple interest which shall not exceed seven and one-half per cent; and

(5) Prescribe the forms of financial participation the department may engage in as a result of making a loan under this chapter, including but not limited to warrants, options, or royalties on sales or earnings."]

SECTION 7. Section 225M-5, Hawaii Revised Statutes, is repealed.

["[§225M-5] Statewide planning and geographic information system special fund. (a) There is established in the state treasury the statewide planning and geographic information system special fund, into which shall be deposited:

(1) Moneys collected as fees for geographic information system services rendered and end products such as maps;

(2) Moneys directed, allocated, or disbursed to the statewide planning and geographic information system program from other government agencies or private sources to help support the acquisition of hardware, software, and databases;

(3) Moneys collected as fees for the convenience of obtaining geographic information system services and products via the Internet; and

(4) Moneys directed, allocated, or disbursed to the statewide planning and geographic information system program from non-state sources, including grants, awards, and donations.

(b) The statewide planning and geographic information system special fund shall be used to help defray the costs of the following:

(1) Planning and geographic information system program activities, including the provision of state funds to match federal funds from the United States Geological Survey or other federal agencies; and

(2) Operating costs of the geographic information system program, including compensation of staff and acquisition and maintenance of hardware or software necessary to implement section 225M-2(b)(4)(B).

(c) Investment earnings credited to the assets of the fund shall become a part of the assets of the fund."]

SECTION 8. On July 1, 2003, the director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the petroleum products control fund established pursuant to section 125C-7, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 9. On July 1, 2003, the director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the Hawaii film facility special fund established pursuant to section 201-15, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 10. On July 1, 2003, the director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the clean Hawaii fund established pursuant to section 201-106, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 11. Any revenues owing to the homes revolving fund abolished by this Act shall be deposited into the dwelling unit revolving fund established by section 201G-411, Hawaii Revised Statutes.

SECTION 12. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the state disaster revolving loan fund established pursuant to section 209-34, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 13. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the Hawaii innovation development fund established pursuant to section 211E-2, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 14. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the statewide planning and geographic information system special fund established pursuant to section 225M-5, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 15. Pursuant to Act 39, Session Laws of Hawaii 2002, the boiler and elevator safety revolving fund is repealed July 31, 2003. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the boiler and elevator safety revolving fund established pursuant to section 397-5.5, Hawaii Revised Statutes, as of July 30, 2003.

SECTION 16. There is appropriated out of the general revenues of the State of Hawaii the sum of $175,431 or so much thereof as may be necessary for fiscal year 2003-2004 and the sum of $175,431 or so much thereof as may be necessary for fiscal year 2004-2005 to operate the Hawaii film studio. The sums appropriated shall be expended by the department of business, economic development and tourism.

PART II

SECTION 17. The legislature determines that there is in the cigarette tax stamp enforcement special fund at least $740,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the cigarette tax stamp enforcement special fund to the general fund the sum of $740,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 18. The legislature determines that there is in the medicaid investigations recovery fund at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the medicaid investigations recovery fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 19. The legislature determines that there is in the litigation settlement clearance account at least $2,500,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the litigation settlement clearance account to the general fund the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 20. The legislature determines that there is in the Aloha Tower fund at least $1,600,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Aloha Tower fund to the general fund the sum of $1,600,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 21. The legislature determines that there is in the dwelling unit revolving fund at least $15,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the dwelling unit revolving fund to the general fund the sum of $15,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 22. The legislature determines that there is in the teachers' housing revolving fund at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the teachers' housing revolving fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 23. The legislature determines that there is in the housing finance revolving fund at least $3,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the housing finance revolving fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 24. The legislature determines that there is in the Waialua loan and subsidy account at least $11,566 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Waialua loan and subsidy account to the general fund the sum of $11,566 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 25. The legislature determines that there is in the compliance resolution fund at least $24,076,286 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the compliance resolution fund to the general fund the sum of $24,076,286 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 26. The legislature determines that there is in the spouse and child abuse special account at least $200,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the spouse and child abuse special account to the general fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 27. The legislature determines that there is in the bureau of conveyances special fund at least $4,500,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the bureau of conveyances special fund to the general fund the sum of $4,500,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 28. The legislature determines that there is in the agricultural loan reserve fund at least $1,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the agricultural loan reserve fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 29. The legislature determines that there is in the agricultural loan revolving fund at least $2,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the agricultural loan revolving fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 30. The legislature determines that there is in the animal quarantine special fund at least $350,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the animal quarantine special fund to the general fund the sum of $350,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 31. The legislature determines that there is in the milk control special fund at least $100,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the milk control special fund to the general fund the sum of $100,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 32. The legislature determines that there is in the Waiahole water system revolving fund at least $600,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Waiahole water system revolving fund to the general fund the sum of $600,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 33. The legislature determines that there is in the stadium special fund at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the stadium special fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 34. The legislature determines that there is in the state motor pool revolving fund at least $900,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the state motor pool revolving fund to the general fund the sum of $900,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 35. The legislature determines that there is in the state parking revolving fund at least $2,200,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the state parking revolving fund to the general fund the sum of $2,200,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 36. The legislature determines that there is in the state identification revolving fund at least $100,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the state identification revolving fund to the general fund the sum of $100,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 37. The legislature determines that there is in the Hawaii capital loan revolving fund at least $500,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Hawaii capital loan revolving fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 38. The legislature determines that there is in the foreign trade zone special fund at least $100,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the foreign trade zone special fund to the general fund the sum of $100,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 39. The legislature determines that there is in the public utilities commission special fund at least $1,083,824 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the public utilities commission special fund to the general fund the sum of $1,083,824 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 40. The legislature determines that there is in the real estate education fund at least $150,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the real estate education fund to the general fund the sum of $150,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 41. The legislature determines that there is in the insurance commissioner's education training fund at least $355,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the insurance commissioner's education training fund to the general fund the sum of $355,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 42. The legislature determines that there is in the human resources development special fund at least $100,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the human resources development special fund to the general fund the sum of $100,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 43. The legislature determines that there is in the state health planning and development agency fund at least $171,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the state health planning and development agency fund to the general fund the sum of $171,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 44. The legislature determines that there is in the tobacco settlement special fund at least $1,900,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the tobacco settlement special fund to the general fund the sum of $1,900,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 45. The legislature determines that there is in the driver education and training fund at least $500,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the driver education and training fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 46. The legislature determines that there is in the occupational safety and health training assistance fund at least $737,669 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the occupational safety and health training assistance fund to the general fund the sum of $737,669 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 47. The legislature determines that there is in the special land and development fund at least $3,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the special land and development fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 48. The legislature determines that there is in the controlled substance registration revolving fund at least $200,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the controlled substance registration revolving fund to the general fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 49. The legislature determines that there is in the Halawa correctional facility inmate store fund at least $140,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Halawa correctional facility inmate store fund to the general fund the sum of $140,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 50. The legislature determines that there is in the Oahu community correctional facility inmate store fund at least $130,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Oahu community correctional facility inmate store fund to the general fund the sum of $130,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 51. The legislature determines that there is in the Waiawa correctional facility inmate store fund at least $50,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Waiawa correctional facility inmate store fund to the general fund the sum of $50,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 52. The legislature determines that there is in the compliance resolution fund at least $3,000,000 in excess of the requirements of the fund. On July 1, 2004, the director of finance is authorized to transfer from the compliance resolution fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2004-2005.

SECTION 53. The legislature determines that there is in the special land and development fund at least $3,000,000 in excess of the requirements of the fund. On July 1, 2004, the director of finance is authorized to transfer from the special land and development fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2004-2005.

PART III

SECTION 54. 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, allocating, and appropriating the tobacco settlement moneys as follows:

(1) Twenty-four and one-half 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 purposes of section 328L-4;

(3) Twelve and one-half per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5; and

(4) Twenty-eight per cent shall be appropriated into the university revenue-undertakings fund created in section 306-10, to be applied solely to the payment of the principal of and interest on, and to generate required coverage, if any, for, revenue bonds issued by the board of regents of the University of Hawaii to finance the cost of construction of a university health and wellness center, including a new medical school facility, to be situated on the island of Oahu, for the succeeding fiscal year; provided that any moneys in excess of the amount required to pay principal of and interest on, and to generate required coverage, if any, for such revenue bonds in any fiscal year, shall be transferred [to] as follows:

(A) To the emergency and budget reserve fund under section 328L-3, eighty per cent of the excess; and

(B) To the Hawaii tobacco prevention and control trust fund under section 328L-5, twenty per cent of the excess;

in the succeeding fiscal year[, in the same proportion as to the amount of moneys appropriated to those funds in accordance with this subsection]."

SECTION 55. Section 502-8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§502-8[]] Bureau of conveyances special fund. (a) There is established in the state treasury the bureau of conveyances special fund, into which shall be deposited the revenues remitted pursuant to sections 501-23.5 and 502-25, interest earnings, grants, donations, and appropriations from the legislature that shall be held separate and apart from all other moneys, funds, and accounts in the state treasury.

(b) Moneys in the bureau of conveyances special fund shall be used by the bureau of conveyances for the following purposes:

(1) Planning, design, construction, and acquisition of equipment, furnishings, and software necessary for the development of the recording system described in this chapter and chapter 501;

(2) Operating, maintaining, and improving the recording system described in this chapter and chapter 501 or any other purpose deemed necessary by the bureau of conveyances for the purpose of planning, improving, developing, operating, and maintaining the recording system described in this chapter and chapter 501;

(3) Permanent and temporary staff positions for the purposes of this chapter and chapter 501; and

(4) Administrative costs for the purposes of this chapter and chapter 501.

(c) All moneys in excess of $500,000 remaining on balance in the bureau of conveyances special fund on June 30 of each year shall lapse to the credit of the state general fund. On July 1, of each year, the director of finance is authorized to transfer any excess funds in the bureau of conveyances special fund to the state general fund."

PART IV

SECTION 56. Title 49 United States Code section 40117 and 14 Code of Federal Regulation Part 158 prohibit expenditure of passenger facility charge revenue for other than approved projects. The Federal Aviation Administration considers any transfer of the passenger facility charges to reimburse administrative expenses or to the works of art special fund to be revenue diversion. Therefore, passenger facility charges revenue needs to be exempt from the requirements of the reimbursement for central service expenses and the works of art special fund.

SECTION 57. Chapter 261, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§261- Passenger facility charge special fund. (a) There is established in the state treasury the passenger facility charge special fund, into which shall be deposited all proceeds from any passenger facility charge.

(b) Moneys in the passenger facility charge special fund shall be used for capital improvement program projects approved by the legislature.

(c) The passenger facility charge special fund is exempt from section 36-30.

(d) The passenger facility charge special fund is exempt from section 103-8.5."

SECTION 58. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Domestic violence prevention special fund under section 321-1.3;

(9) Spouse and child abuse special account under section 346-7.5;

(10) Spouse and child abuse special account under section 601-3.6;

(11) Funds of the employees' retirement system created by section 88-109;

(12) Unemployment compensation fund established under section 383-121;

(13) Hawaii hurricane relief fund established under chapter 431P;

(14) Convention center enterprise special fund established under section 201B-8;

(15) Hawaii health systems corporation special funds;

(16) Tourism special fund established under section 201B-11;

(17) Compliance resolution fund established under section 26-9;

(18) Universal service fund established under chapter 269;

(19) Integrated tax information management systems special fund under section 231-3.2;

(20) Hawaii tobacco settlement special fund under section 328L-2;

(21) Emergency and budget reserve fund under section 328L-3;

(22) Probation services special fund under section 706-649;

(23) High technology special fund under section 206M-15.5;

(24) Public schools special fees and charges fund under section 302A-1130(f);

(25) Cigarette tax stamp enforcement special fund established by section 28-14;

(26) Cigarette tax stamp administrative special fund established by section 245-41.5;

(27) Tobacco enforcement special fund established by section 28-15;

(28) Sport fish special fund under section 187A-9.5; [and]

(29) Neurotrauma special fund under section 321H-4; and

(30) Passenger facility charge special fund established by section 261- ;

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 59. Section 103-8.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created a works of art special fund, into which shall be transferred one per cent of all state fund appropriations for capital improvements designated for the construction cost element; provided that this transfer shall apply only to capital improvement appropriations that are designated for the construction or renovation of state buildings. The one per cent transfer requirement shall not apply to appropriations from the passenger facility charge special fund established by section 261- ."

PART V

SECTION 60. Statutory material to be repealed is bracketed and stricken.

SECTION 61. This Act shall take effect on July 1, 2003, provided that sections 1, 2, 3, 4, 5, 6, and 7 shall take effect on July 2, 2003, and sections 52 and 53 shall take effect on July 1, 2004.