Report Title:

State finances

Description:

Abolishes special funds with exceptions.

THE SENATE

S.B. NO.

420

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to state finances.

 

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

PART I

SECTION 1. Section 26-5, Hawaii Revised Statutes, is amended to read as follows:

"§26-5 Department of human resources development. (a) The department of human resources development shall be headed by a single executive to be known as the director of human resources development.

(b) The department shall administer the state human resources program, including human resources development and training, and central human resources services such as recruitment, examination, classification, pay administration, and payment of any claims as required under chapter 386.

(c) There shall be within the department of human resources development a board to be known as the merit appeals board which shall sit as an appellate body on matters set forth in section 76-14. The board shall consist of three members. All members shall have knowledge of public employment laws and prior experience with public employment; provided that at least one member's experience was with an employee organization as a member or an employee of that organization and at least one member's experience was with management. The governor shall consider the names of qualified individuals submitted by employee organizations or management before appointing the members of the board. The chairperson of the board shall be designated as specified in the rules of the board.

(d) The provisions of section 26-34 shall not apply and the board members shall be appointed by the governor for four-year terms and may be re-appointed without limitation; provided that the initial appointments shall be for staggered terms, as determined by the governor. The governor shall fill any vacancy by appointing a new member for a four-year term. The governor may remove for cause any member after due notice and public hearing.

(e) Nothing in this section shall be construed as in any manner affecting the civil service laws applicable to the several counties, the judiciary, or the Hawaii health systems corporation, which shall remain the same as if this chapter had not been enacted.

[(f) There is established in the state treasury the human resources development special fund, to be administered by the department of human resources development, which shall consist of: all revenues received by the department as a result of entrepreneurial efforts in securing new sources of funds not provided for in the department's budget for services rendered by the department, all revenues received by the department from the charging of participant fees for in-service training that are in addition to general fund appropriations in the department's budget for developing and operating in-service training programs, appropriations made by the legislature to the fund, and moneys directed to the department from any other source, including gifts, grants, and awards.

Moneys in the human resources development special fund shall be used for the following purposes:

(1) Supporting the department's entrepreneurial initiatives, training activities, and programs;

(2) Administrative costs of the department's entrepreneurial initiatives, training activities, and programs; and

(3) Any other purpose deemed necessary by the director for the purpose of facilitating the department's entrepreneurial initiatives, training activities, and programs.]"

SECTION 2. Section 37-52.3, Hawaii Revised Statutes, is amended to read as follows:

"[§37-52.3] Criteria for the [establishment] review and continuance of special funds. [Special funds shall only be established pursuant to an act of the legislature.] (a) The legislature shall conduct reviews of all special funds in existence every two years in conjunction with the beginning of a fiscal biennium. (b) The legislature, in [establishing or] reviewing a special fund to determine whether it should be continued, shall ensure that the special fund:

(1) Serves the purpose for which it was originally established;

(2) Reflects a clear nexus between the benefits sought and charges made upon the users or beneficiaries of the program, as opposed to serving primarily as a means to provide the program or users with an automatic means of support that is removed from the normal budget and appropriation process;

(3) Provides an appropriate means of financing for the program or activity; and

(4) Demonstrates the capacity to be financially self- sustaining."

SECTION 3. Section 37-53, Hawaii Revised Statutes, is amended to read as follows:

"§37-53 Transfer of special funds. At any time during a fiscal year, notwithstanding any other law to the contrary, any department may, with the approval of the governor or the director of finance if so delegated by the governor, transfer from any special fund relating to such department to the general revenues of the State all or any portion of moneys determined to be in excess of fiscal year requirements for such special fund, except for special funds under the control of the department of transportation relating to highways, airports, transportation use, and harbors activities, special funds under the control of the Hawaii health systems corporation, and special funds of the University of Hawaii. At any time the department of transportation, with the approval of the governor or the director of finance if so delegated by the governor, may transfer from any special fund under the control of the department of transportation, or from any account within any such special fund, to the general revenues of the State or to any other special fund under the control of the department of transportation all or any portion of moneys determined to be in excess of requirements for the ensuing twelve months determined as prescribed by rules adopted pursuant to chapter 91; provided that no such transfer shall be made which would cause a violation of federal law or federal grant agreements. A department shall notify the legislature of any transfers no later than thirty days after the transfer is complete."

SECTION 4. Section 302A-405, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"§302A-405 School cafeterias; funds; expenditures. (a) The price for the school lunch shall be set by the department to ensure that moneys received from the sale of the lunches shall be up to one-third of the cost of preparing the school lunch, rounded to the nearest twenty-five cents, adjusted during the first year of the fiscal biennium. The price for the school lunch shall be based on the average cost of preparing the school lunch over the three years preceding the second year of the fiscal biennium; provided that the department by rule shall provide a lower rate or free lunches to children based on their economic need.

[(b) All moneys received by or for the public school cafeterias from the sale of meals, the sale of services, the federal government, or any other source, shall be deposited in one special school lunch fund. Except as otherwise provided by the legislature, all expenditures for the operation of public school cafeterias shall be made from this fund.]

[(c)] b It is the intent of this section not to jeopardize the receipt of any federal aid and to the extent, and only to the extent necessary to effectuate this intent, the governor may modify the strict provisions of this section, but shall promptly report any such modification with the governor's reasons therefor to the next succeeding session of the legislature for review."

SECTION 5. Section 607-5.6, Hawaii Revised Statutes, is amended to read as follows:

"[§607-5.6] Surcharge for parent education for separating parties with children; special fund. (a) In addition to the fees prescribed for a matrimonial action under section 607-5, the court shall collect a surcharge of $35 at the time of filing the initial complaint or petition.

(b) No surcharge shall be assessed:

(1) Against any party who has received a waiver of filing fees;

(2) Against any party proceeding on behalf of the State or any of the various counties; or

(3) If neither party has a minor child.

(c) Any respondent in a matrimonial action with a minor child may be requested to make a $15 donation which shall be deposited into the [special] general fund.

(d) Surcharges subject to this section shall be limited to one payment per case.

[(e) There is established within the state treasury the parent education special fund into which shall be deposited revenues assessed under subsection (a), interest and investment earnings, grants, donations, and contributions from private or public sources. The fund shall be administered by the judiciary, subject to the conditions specified in subsection (f).

(f) The special fund shall be used solely for expenditures related to providing education on all islands for separating parents and their children. Revenues deposited into the special fund may be used for existing or enhanced parent education programs administered by the judiciary, or for grants or purchases of service pursuant to chapter 42D. All appropriations or authorizations from the special fund shall be expended by the judiciary.

(g) The judiciary shall submit an annual financial report to the legislature, prior to the convening of each regular session, which shall include an accounting of all deposits and expenditures from the fund.]"

SECTION 6. Section 706-603, Hawaii Revised Statutes, is amended to read as follows:

"§706-603 Mental and medical examination; deoxyribonucleic acid collection. (1) As used in this section, unless the context otherwise requires:

"Conviction" means that a verdict has been rendered by a judge or jury, or a plea of guilty or nolo contendere has been accepted by the court.

"DNA" means deoxyribonucleic acid.

"Licensed psychologist" means psychologists licensed under chapter 465 but also includes psychologists exempt from licensure under section 465-3(a)(3).

"Sexual offense" means an offense as defined in chapter 846E as a sexually violent offense or a criminal offense against a victim who is a minor.

"Violent offense" means murder, or attempted murder, in any degree.

(2) Before imposing sentence, the court may order a defendant who has been convicted of a felony or misdemeanor to submit to mental or other medical observation and examination for a period not exceeding sixty days or a longer period, not to exceed the length of permissible imprisonment, as the court determines to be necessary for the purpose. In addition thereto or in the alternative, the court may appoint one or more qualified psychiatrists, physicians, or licensed psychologists to make the examination. The examiner or examiners shall be appointed from a list of certified examiners as determined by the state department of health. The report of the examination shall be submitted to the court.

(3) After entry of a plea of guilty or no contest or return of a verdict of guilty, a defendant who has been convicted of a sexual or violent offense shall provide two samples of blood for DNA analysis.

(4) A defendant who has been convicted of a sexual or violent offense and who is in custody at a jail, prison, hospital, school, or other institution shall provide two samples of blood for DNA analysis. The person in charge of such an institution, or that person's designee, shall arrange for the sample to be collected and analyzed.

(5) A defendant who has been convicted of a sexual or violent offense and who is not in custody shall report in person to any police station in the county in which the defendant resides or is present to schedule an appointment to provide two samples of blood for DNA analysis. A defendant required to report to a police station under this subsection shall do so within:

(a) Thirty days of July 20, 1998;

(b) Thirty days of conviction; or

(c) Thirty days after arrival in this State, if the defendant expects to be present in this State for a period exceeding thirty days.

(6) A defendant who has been charged with a sexual or violent offense and who has been found unfit to proceed or acquitted pursuant to chapter 704, or any state, federal, or military law similar to chapter 704 shall provide two samples of blood for DNA analysis. The person in charge of the jail, prison, hospital, school, or other institution where the defendant is in custody, or that person's designee, shall arrange for the sample to be collected and analyzed. A defendant who is not in custody and who is required to provide blood under this subsection shall report in person to any police station in the county in which the defendant resides or is present to schedule an appointment to provide two samples of blood. A defendant required to report to a police station under this subsection shall do so within:

(a) Thirty days of July 20, 1998;

(b) Thirty days of the release following an acquittal or finding of unfitness to proceed under chapter 704; or any state, federal, or military law similar to chapter 704; or

(c) Thirty days after arrival in the State,

if the defendant resides or expects to be present in the State for a period exceeding thirty days.

(7) Blood withdrawn pursuant to this section shall be withdrawn only by a person authorized to withdraw blood under section 291E-12. The results shall be recorded, preserved, and disseminated in a manner consistent with the requirements of chapter 846. A defendant who has already provided the necessary samples of blood pursuant to this section shall be relieved of any further requirement to provide blood for DNA analysis, unless the court orders otherwise.

(8) In addition to any disposition authorized by chapter 706 or 853, a defendant convicted of a sexual or violent offense after July 20, 1998 may be ordered to pay a monetary assessment of $500 or the actual cost of the DNA analysis, whichever is less. The court shall not order the defendant to pay the monetary assessment unless the defendant is or will be able to pay the monetary assessment. Notwithstanding any other law to the contrary, the assessment provided by this section shall be in addition to, and not in lieu of, and shall not be used to offset or reduce, any fine authorized or required by law. All assessments shall be paid into the [DNA registry special fund] general fund. [established in subsection (9).]

[(9) There is established a special fund to be known as the DNA registry special fund which shall be administered by the attorney general. The fund shall consist of:

(a) All assessments ordered pursuant to subsection (8);

(b) All other moneys received by the fund from any other source; and

(c) Interest earned on any moneys in the fund.

Moneys in the DNA registry special fund shall be used for DNA collection, DNA testing, and related costs of recording, preserving, and disseminating DNA information pursuant to this section.]

[(10)](9) Restitution to the victim of a sexual or violent crime shall be made before payment of the monetary assessment.

[(11)](10) Any person required to provide blood samples under this section who negligently or recklessly fails to comply shall be guilty of a misdemeanor; and any person who intentionally or knowingly fails to provide blood samples under this section shall be guilty of a class C felony."

PART II

SECTION 7. The legislature finds that the auditor conducted an update of its 1992 Loss of Budgetary Control: A Summary Report of the Review of Special and Revolving Funds (report no. 92-14). Report no. 92-14 provided an overview of five reports issued in 1991 and 1992 that reviewed all special and revolving funds in existence as of July 1, 1990, of sixteen state departments, the University of Hawaii, and the judiciary.

According to the auditor's July, 2001, update of report no. 92-14, a majority (one hundred six out of one hundred sixty-six) of the special and revolving funds previously reviewed were still in existence as of July 1, 1999. The auditor also found that few of the one hundred six special and revolving funds have undergone significant changes since they were last reviewed. The auditor also found thirty-one special and revolving funds previously reviewed in 1991 and 1992, which were in existence as of July 1, 1999, still did not meet all established criteria. The fiscal year 1999-2000 ending cash balance of these thirty-one funds totaled approximately $77,400,000.

The auditor also found that one hundred thirty-two special and revolving funds have been statutorily or administratively created since July 1, 1990, but twenty-five of these funds have since been repealed or discontinued. The aggregate cash balance of the special and revolving funds created after July 1, 1990, and still in existence as of June 30, 2000, totaled approximately $220,000,000. However, the auditor found that thirty-eight of these special and revolving funds did not meet all criteria of a special or revolving fund and held over $19,000,000 outside the general fund.

In 2002, the Governor signed into law Act 178, which implemented some of the recommendations of the auditor by discontinuing and transferring approximately $145,000,000 from select special and revolving funds to the general fund.

The legislature finds that the use of special funds as an alternative means of financing state government projects and programs has resulted in the misuse of state funds. Funds that are still in existence that were recommended for repeal by the auditor currently total approximately $100,000,000. The legislature further finds that the projects and programs funded by special funds, with the exception of federally mandated programs and funds, should be held accountable and present to the legislature their budgetary requests and justifications through general fund appropriations.

The purpose of this part is to repeal certain special funds, with the exception of federally mandated or funded special funds.

SECTION 8. Section 142-28.5, Hawaii Revised Statutes, is repealed.

["§142-28.5 Animal quarantine special fund. There is established the animal quarantine special fund to be administered by the board of agriculture. All moneys received by the board of agriculture as fees for the quarantine of cats, dogs, and other carnivores pursuant to this chapter, or any state appropriations or other moneys made available for the cost of quarantine, shall be deposited into the special fund. All interest earned or accrued on moneys deposited in the special fund shall become part of the special fund. Moneys in the special fund shall be expended to cover all costs of quarantine but not limited to the costs of salaries, fringe benefits, operating expenses, including the defraying of quarantine fees, equipment, motor vehicles, contract with any qualified person or entity for animal care services, operation and maintenance of the quarantine station, and promotional expenses. A reserve shall be appropriated and maintained in the special fund to cover contingency costs including but not limited to accrued vacation leave, unemployment insurance, and workers' compensation.]"

SECTION 9. Section 141-2.7, Hawaii Revised Statutes, is repealed.

["[§141-2.7] Aquaculture development special fund. (a) There is established in the state treasury the aquaculture development special fund into which shall be deposited:

(1) Appropriations from the legislature;

(2) Moneys collected as fees for special microbiological and histological procedures and expert aquaculture-related services;

(3) Moneys collected from the sale of any item related to aquaculture development that is purchased from the department;

(4) Moneys directed to the aquaculture development program from any other sources, including but not limited to grants, gifts, and awards; and

(5) Moneys derived from interest, dividend, or other income from the above sources.

(b) Moneys in the aquaculture development special fund shall be used to:

(1) Implement the aquatic disease management programs and activities of the department, including provision of state funds to match federal grants; and

(2) Support research and development programs and activities relating to the expansion of the state aquaculture industry. Research and development programs and activities funded under this paragraph may be conducted by department personnel or through contracts with the University of Hawaii or other qualified persons.]"

SECTION 10. Section 342P-8, Hawaii Revised Statutes, is repealed.

["[§342P-8 Asbestos and lead abatement special fund.] (a) There is established within the department of health an asbestos and lead abatement special fund into which shall be deposited all moneys collected from fees for permits, licenses, inspections, certificates, notifications, variances, investigations, and reviews.

(b) Moneys in the asbestos and lead abatement special fund shall be expended by the department to:

(1) Partially fund the operating costs of the asbestos and lead abatement program’s mandated activities and functions;

(2) Fund statewide education, demonstration, and outreach programs;

(3) Provide for the accreditation of training programs;

(4) Provide training opportunities to ensure the maintenance of professional competence among staff and administrators; and

(5) Plan for future growth and expansion to meet emerging needs.]"

SECTION 11. Section 171-156, Hawaii Revised Statutes, is repealed.

["[§171-156] Beach restoration special fund. (a) There is established in the state treasury a special fund to be designated as the "beach restoration special fund" to carry out the purposes of this part. The following moneys shall be deposited into the beach restoration special fund:

(1) Proceeds from the lease or development of public coastal lands designated pursuant to a beach restoration plan, subject to the Hawaiian Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act of 1959;

(2) Proceeds from the lease of public lands pursuant to this part for an existing seawall or revetment;

(3) Fines collected for unauthorized shoreline structures on state submerged land or conservation district land;

(4) Appropriations made by the legislature for deposit into this fund;

(5) Donations and contributions made by private individuals or organizations for deposit into this fund;

(6) Fees collected for the processing of applications for coastal and beach erosion control projects; and

(7) Grants provided by governmental agencies or any other source.

(b) The beach restoration special fund may be used by the department for one or more of the following purposes:

(1) Planning, designing, development, or implementation of beach restoration projects pursuant to this part; and

(2) Providing grants to the counties, nongovernmental organizations, and the University of Hawaii for the restoration of beach lands and for research or engineering studies necessary to support beach restoration projects, subject to this part.]"

SECTION 12. Section 321-426, Hawaii Revised Statutes, is repealed.

["[§321-426] Birth defects special fund. There is established within the state treasury the Hawaii birth defects special fund to be administered and expended by the department of health, into which shall be deposited fees remitted pursuant to section 572-5. Moneys in the special fund shall be used for the payment of the operating expenses of the birth defects program.]"

SECTION 13. Section 502-8, Hawaii Revised Statutes, is repealed.

["[§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.]"

SECTION 14. Section 245-41.5, Hawaii Revised Statutes, is repealed.

["[§245-41.5] Cigarette tax stamp administrative special fund. (a) There is established in the state treasury the cigarette tax stamp administrative special fund, into which shall be deposited the allocated portion of the stamp fee designated to pay for the cost to the State of providing the stamps as provided by section 245-26.

(b) Moneys in the cigarette tax stamp administrative special fund shall be administered by the department of taxation and shall be used:

(1) To provide the stamps and administer the cigarette tax stamp provisions as provided in chapter 245; and

(2) For any other requirements deemed necessary to carry out the purposes of chapter 245.]"

SECTION 15. 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 16. Section 189-2.4, Hawaii Revised Statutes, is repealed.

["§189-2.4 Commercial fisheries special fund. (a) There is established in the treasury of the State a special fund to be known as the commercial fisheries special fund which shall be administered by the department.

(b) The following revenues shall be deposited into the commercial fisheries special fund:

(1) Moneys collected as fees for licenses and permits related to commercial fishing and the sale of aquatic life, use of public fishing grounds for commercial fishing purposes, and use of commercial fisheries-related facilities;

(2) Moneys collected under the provision of any law or rule related to the importation, rearing, fishing, taking, catching, or killing of any aquatic life for commercial purposes;

(3) Moneys, other than informers' fees authorized under section 187A-14, collected as fines or bail forfeitures or administrative fines for violations of this chapter;

(4) Moneys collected from the sale of any article purchased from the department related to aquatic life used for commercial purposes or fishing for commercial purposes;

(5) Any monetary contributions or moneys collected from the sale of nonmonetary gifts to benefit aquatic life used for commercial purposes or fishing for commercial purposes; and

(6) Moneys derived from interest, dividend, or other income from the above sources.

(c) The commercial fisheries special fund shall be used for the following:

(1) Programs and activities for projects concerning aquatic life used for commercial purposes;

(2) Developing and conducting resource monitoring programs, conducting studies to determine the sustainable use of aquatic life for commercial purposes, and developing recommendations for acceptable levels of use;

(3) Research programs and activities concerning the conservation and management of aquatic life for commercial purposes;

(4) Programs and activities concerning the importation and management, preservation, propagation, enforcement, and protection of aquatic life used for commercial purposes; and

(5) Payroll for personnel of the department or the awarding of grants-in-aid to or contracts with the University of Hawaii or other qualified organizations or individuals to develop or implement the programs and activities for the conservation and management of aquatic life for commercial purposes.

(d) The proceeds of the commercial fisheries special fund shall not be used as security for, or pledged to the payment of principal or interest on, any bonds or instruments of indebtedness.

(e) Nothing in this section shall be construed to prohibit the use of general funds or the funds of other programs and activities to implement or enforce title 12, subtitle 5, concerning management and conservation of aquatic life used for commercial purposes.]"

SECTION 17. Section 201B-8, Hawaii Revised Statutes, is repealed.

["[§201B-8] Convention center enterprise special fund. (a) There is established in the state treasury the convention center enterprise special fund, into which shall be deposited:

(1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5;

(2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center;

(3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and

(4) Appropriations by the legislature, including any transfers from the tourism special fund established under section 201B-11 for marketing the facility pursuant to section [201B-7(a)(7)].

(b) Moneys in the convention center enterprise special fund shall be used by the authority for the payment of any and all debt service relating to the convention center, any expense arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section.]"

SECTION 18. Section 342G-104, Hawaii Revised Statutes, is repealed.

["[§342G-104] Deposit into deposit beverage container deposit special fund; use of funds. (a) There is established in the state treasury the deposit beverage container deposit special fund, into which shall be deposited:

(1) All revenues generated from the deposit beverage container fee as described under sections 342G-102 and 342G-105;

(2) All revenues generated from the deposit beverage container deposit as described under sections 342G-105 and 342G-110; and

(3) All accrued interest from this fund.

(b) Moneys in the fund shall be used to reimburse refund values and pay handling fees to redemption centers. The department may also use the money to:

(1) Fund administrative, audit, and compliance activities associated with collection and payment of the deposits and handling fees of the deposit beverage container fee and deposit program;

(2) Conduct recycling education and demonstration projects;

(3) Promote recyclable market development activities;

(4) Support the handling and transportation of the deposit beverage containers to end-markets;

(5) Hire personnel to oversee the implementation of the deposit beverage container fee and deposit program, including permitting and enforcement activities; and

(6) Fund associated office expenses.]"

SECTION 19. Section 448B-10, Hawaii Revised Statutes, is repealed.

["[§448B-10] Dietitian licensure special fund. There is established in the state treasury a special fund to be known as the dietitian licensure special fund to be administered by the department. Fees collected under section 448B-9 shall be deposited in the dietitian licensure special fund and may be expended for the costs associated with administering the licensure program, including but not limited to education.]"

SECTION 20. Section 348F-7, Hawaii Revised Statutes, is repealed.

["[§348F-7] Disability and communication access board special fund. (a) There is established the disability and communication access board special fund to be administered by the disability and communication access board. All moneys received by the disability and communication access board as application fees for credentialing of interpreters shall be deposited into the special fund. All interest earned or accrued on moneys deposited into this special fund shall become part of the special fund.

(b) Moneys in the disability and communication access board special fund shall be expended to cover all costs of administering this chapter including the costs of administering the program for the state credentialing of interpreters.]"

SECTION 21. Section 321-1.3, Hawaii Revised Statutes, is repealed.

["[§321-1.3] Domestic violence prevention special fund. (a) There is established within the state treasury a special fund to be known as the domestic violence prevention special fund to be administered and expended by the department of health.

(b) The moneys in the special fund shall be reserved for use by the department of health for staff programs and grants or purchases of service consistent with chapter 42D that support or provide domestic violence intervention or prevention as authorized by law. Moneys in the special fund shall be used for new or existing programs and shall not supplant any other moneys previously allocated to these programs.

(c) Fees remitted pursuant to section 338-14.5, interest and investment earnings attributable to the moneys in the special fund, and grants, donations, and contributions from private or public sources for the purposes of the fund, shall be deposited into the special fund.

(d) The department of health shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session; providing an accounting of the receipts of, and expenditures from, the special fund.]"

SECTION 22. Section 321-355, Hawaii Revised Statutes, is repealed.

["[§321-355] Early intervention special fund. (a) There is established in the state treasury a special fund to be known as the early intervention special fund to be administered by the department in accordance with this section.

(b) The fund shall consist of grants and income earned by the special fund. Notwithstanding section 29-24, all program income consisting of federal reimbursement funds received by the State for early intervention funded by legislative appropriations under this part shall be deposited into the special fund; provided that no state appropriations shall be deposited into the special fund.]"

SECTION 23. Section 268-2.6, Hawaii Revised Statutes, is repealed.

["[§268-2.6 Ferry project special fund.] There is established in the state treasury the ferry project special fund, into which shall be deposited revenues collected by the operators of the intra-island water ferry transportation system. Moneys in the ferry project special fund shall be used to offset costs incurred by the intra-island water ferry transportation system or demonstration project, or both; provided that no expenditure shall be made from, and no obligation shall be incurred against the fund in excess of its deposits. Moneys in the fund shall be expended by the department of transportation.]"

SECTION 24. Section 323D-12.6, Hawaii Revised Statutes, is repealed.

["[§323D-12.6] State health planning and development special fund; created; deposits; expenditures; fees. (a) There is established within the state treasury, to be administered by the state health planning and development agency, the state health planning and development special fund into which shall be deposited all moneys collected under chapter 323D.

(b) Moneys in the special fund shall be expended by the state health planning and development agency to assist in offsetting program expenses of the agency.

(c) The agency shall adopt rules in accordance with chapter 91 to establish reasonable fees for the purposes of this chapter.]"

SECTION 25. Section 321-1.4, Hawaii Revised Statutes, is repealed.

["§321-1.4 Hospital and medical facilities special fund; deposits; expenditures. (a) There is established within the department of health, to be administered by the department of health, the hospital and medical facilities special fund into which shall be deposited all moneys collected under section 321-11.5(b).

(b) Moneys in the special fund shall be expended by the department:

(1) To assist in offsetting educational program expenses of the department's hospital and medical facilities branch; and

(2) For the purpose of enhancing the capacity of hospital and medical facilities programs to:

(A) Improve public outreach efforts and consultations to industries regulated; and

(B) Educate the public, the staff of the department of health, hospitals, nursing homes, and care homes, and industries regulated.

Not more than $230,000 of the special fund may be used during any fiscal year for education.

(c) Any amount in the special fund in excess of $356,000 on June 30 of each year shall be deposited into the general fund.

(d) The department of health shall submit a report to the legislature concerning the status of the special fund, including the amount of moneys deposited into and expended from the special fund, and the sources of receipts and uses of expenditures, no later than twenty days prior to the convening of each regular session.]"

SECTION 26. Section 171-19.5, Hawaii Revised Statutes, is repealed.

["[§171-19.5] Infrastructure development fund; establishment. (a) There is established in the state treasury the infrastructure development fund to be administered by the department of land and natural resources. Funds transferred or appropriated by the legislature and moneys received or collected by the department of land and natural resources, as authorized by the legislature, shall be deposited into the infrastructure development fund.

(b) The infrastructure development fund shall be used to provide funding for infrastructure development in the Kikala-Keokea area on the island of Hawaii to benefit residents of Kalapana who have been dispossessed of their homes and lands as a result of the continued volcanic eruptions on the island of Hawaii, which began on January 3, 1983. Proceeds of this fund may be used for necessary expenses in the administration of the fund.

(c) Upon fulfillment of the purposes of this section, any unexpended or unencumbered funds appropriated by the legislature or remaining in the infrastructure development fund as of the close of business on June 30, 2004, shall not lapse into that fund or to the credit of the general fund, but shall be transferred to the credit of the Kikala-Keokea housing revolving fund established in section 201G-170.5 as of that date; provided that any unexpended or unencumbered moneys that were provided by the office of Hawaiian affairs and deposited into the infrastructure development fund for the purpose of infrastructure development shall be refunded to the office of Hawaiian affairs upon the completion of the fund's intended purpose. No funds shall be transferred until all funding commitments entered into by the department of land and natural resources to complete the design and construction of infrastructure improvements have been executed.]

SECTION 27. Section 431:19-101.8, Hawaii Revised Statutes, is repealed.

["§431:19-101.8 Captive insurance administrative fund. (a) The commissioner may establish a separate fund designated as the captive insurance administrative fund.

(b) [L 2002, c 206, §1 amendment effective January 1, 2003.] All premium taxes collected from captive insurance companies licensed in this State under this article, all

captive insurance company application fees, annual license fees, and examination fees collected pursuant to this article shall be credited to the captive insurance administrative fund. Each fiscal year, the commissioner shall transfer out of the fund and deposit into the compliance resolution fund a total of forty per cent of the total moneys credited to the fund in the prior fiscal year or $1,500,000, whichever is greater, to pay for the expenditures contemplated by this section. In addition, each fiscal year, the commissioner shall transfer out of the fund and deposit into the compliance resolution fund up to ten per cent of the total moneys credited to the fund in the prior fiscal year for purposes of promoting Hawaii as a captive insurance domicile. Disbursements for promotional activities from the compliance resolution fund shall be subject to the approval of the director of commerce and consumer affairs. Subject to the foregoing expenditure limits, all moneys remaining in the fund shall revert to the general fund.]"

SECTION 28. Section 431:22-102, Hawaii Revised Statutes, is repealed.

["[§431:22-102] Loss mitigation grant fund. (a) There is established a special fund to be designated as the loss mitigation grant fund. Moneys transferred to the loss mitigation grant fund may be expended by the commissioner to carry out the commissioner's duties and obligations under this article. Disbursements from the loss mitigation grant fund shall not be subject to chapter 42F, 91, or 103D.

(b) The loss mitigation grant fund may be used by the commissioner to make loss mitigation grants authorized under this article. The loss mitigation grant fund shall also be used by the commissioner to pay for any administrative and operational costs, including personnel costs and marketing costs, associated with a loss mitigation grant program. Any law to the contrary notwithstanding, the commissioner may use the moneys in the loss mitigation grant fund to employ or retain, by contract or otherwise, without regard to chapters 76 and 78, necessary professional, expert, managerial, technical, and support personnel to implement and carry out the purposes of this article.

(c) The commissioner shall prepare an annual report to the director, governor, and the legislature on the use of the loss mitigation grant fund. The report shall provide statistical information on program participation. The report shall be submitted to the legislature no later than twenty days prior to the convening of each regular legislative session.]"

SECTION 29. Section 431:10G-107, Hawaii Revised Statutes, is repealed.

["§431:10G-107 Drivers education fund underwriters fee; motorcycle and motor scooter operators education fund. (a) The commissioner shall assess and levy upon each insurer, and self-insurer, a drivers education fund underwriters fee of $2 a year on each motorcycle or motor scooter insured by each insurer or self-insurer. This fee shall be due and payable on an annual basis by means and at a time to be determined by the commissioner.

(b) There is created in the treasury of the State a special fund to be known as the motorcycle and motor scooter operators education fund. The commissioner shall deposit the fees collected under this section into the motorcycle and motor scooter operators education fund.

(c) The fees deposited for each fiscal year into the motorcycle and motor scooter operators education fund, when appropriated, shall be available to the department of transportation for the administration of a drivers education program for operators of motorcycles or motor scooters. The department of transportation may spend the amount collected from these fees for the purposes of this section.]"

SECTION 30. Section 231-3.2, Hawaii Revised Statutes, is repealed.

["[§231-3.2] Integrated tax information management systems special fund. (a) There is established in the state treasury the integrated tax information management systems special fund into which shall be deposited general excise tax revenues as provided by section 237-31. The director of taxation may retain and deposit the amounts necessary to meet the obligations of the integrated tax information management systems performance-based contract. The amounts transferred by the director of taxation to the integrated tax information management systems special fund for a fiscal year shall be limited to the amounts appropriated by the legislature.

(b) Moneys in the fund shall be expended by the department to pay for the integrated tax information management systems performance-based contracts authorized by Act 273, Session Laws of Hawaii 1996.

(c) The department shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session, providing an accounting of the receipts of, and expenditures from, the fund.

(d) This section shall be repealed on July 1, 2004.]"

SECTION 31. Section 109-9, Hawaii Revised Statutes, is repealed.

["[§109-9] Kapolei recreational sports complex special fund. There is created a special fund to be known as the Kapolei recreational sports complex special fund into which funds appropriated by the legislature, received pursuant to a management contract under section 109-2(3), or collected by the authority from the operations of the Kapolei recreational sports complex shall be deposited subject to contracts entered into pursuant to section 109-2(3); provided that all funds received pursuant to this section shall be kept completely separate from the stadium special fund. Moneys may not be transferred between the Kapolei recreational sports complex special fund and the stadium special fund. The Kapolei [recreational] sports complex special fund shall be applied, used, and disposed of for the payment of:

(1) The expenses of the operation, maintenance, promotion, and management of; and

(2) All or a portion of the cost of financing any capital improvement project for;

the Kapolei recreational sports complex; provided that all services required for the Kapolei recreational sports complex shall be performed by persons hired on contract or otherwise, without regard for chapter 76; provided further that the authority shall report annually to the legislature all receipts and expenditures of the Kapolei recreational [sports] complex special fund account no later than twenty days prior to the convening of each regular session.]"

SECTION 32. Section 157-29, Hawaii Revised Statutes, is repealed.

["[§157-29] Milk control special fund. There is established the milk control special fund to be administered by the board of agriculture. All moneys received by the board of agriculture as application fees and for licenses or otherwise under this chapter, and any state appropriations or other moneys made available to carry out the purposes of this chapter, shall be deposited into the special fund. All interest earned or accrued on moneys deposited in the special fund shall become part of the special fund. Moneys in the special fund shall be expended to cover all costs of administering this chapter including but not limited to the costs of salaries, fringe benefits, operating expenses, equipment, motor vehicles, contracts for services, and promotional expenses. Moneys in the special fund may be transferred to the general fund for salaries and fringe benefits of other state employees assisting in administering this chapter and other related costs. A reserve shall be maintained in the special fund to cover contingency costs including but not limited to accrued vacation leave, unemployment insurance, and workers' compensation.]"

SECTION 33. Section 321H-4, Hawaii Revised Statutes, is repealed.

["[§321H-4] Neurotrauma special fund. (a) There is established the neurotrauma special fund to be administered by the department with advisory recommendations from the neurotrauma advisory board. The fund shall consist of:

(1) Moneys raised pursuant to the surcharges levied under sections 291-11.5, 291-11.6, 291C-12, 291C-12.5, 291C-12.6, 291C-102, and 291E-61;

(2) Federal funds granted by Congress or executive order, for the purpose of this chapter; provided that the acceptance and use of federal funds shall not commit state funds for services and shall not place an obligation upon the legislature to continue the purpose for which the federal funds are made available; and

(3) Funds appropriated by the legislature for the purpose of this chapter.

(b) The fund shall be used for the purpose of funding and contracting for services relating to neurotrauma as follows:

(1) Education on neurotrauma;

(2) Assistance to individuals and families to identify and obtain access to services;

(3) Creation of a registry of neurotrauma injuries within the State to identify incidence, prevalence, individual needs, and related information; and

(4) Necessary administrative expenses to carry out this chapter not to exceed two per cent of the total amount collected.

(c) Moneys in the neurotrauma special fund may be appropriated to obtain federal and private grant matching funds, subject to section 321H-4(a)(2).

(d) In administering the fund, the director shall maintain records of all expenditures and disbursements made from the neurotrauma special fund.

(e) The director shall submit to the legislature an annual report on the activities under the neurotrauma special fund no later than twenty days prior to the convening of each regular session.]"

SECTION 34. Section 342P-7, Hawaii Revised Statutes, is repealed.

["[§342P-7] Noise, radiation, and indoor air quality special fund; established. (a) There is established within the department of health a noise, radiation, and indoor air quality special fund into which shall be deposited all moneys collected from fees for permits, licenses, inspections, certificates, notifications, variances, investigations, and review, pursuant to sections 342F-14, 342P-28, 466J-4, and 466J-5.

(b) Moneys in the fund shall be expended by the department to:

(1) Partially fund the operating costs of the program mandated activities and functions;

(2) Fund statewide education, demonstration, and outreach programs;

(3) Provide training opportunities to ensure the maintenance of professional competence among staff and administrators; and

(4) Plan for future growth and expansion to meet emerging needs.]"

SECTION 35. Section 706-649, Hawaii Revised Statutes, is repealed.

["[§706-649] Probation services special fund. (1) There is established in the state treasury a special fund to be known as the probation services special fund. All probation services fees collected under section 706-648 shall be deposited into this fund.

(2) Moneys in the probation services special fund shall be used by the judiciary to monitor, enforce, and collect fees, fines, restitution, other monetary obligations owed by defendants, and other terms and conditions of probation.

(3) The probation services special fund shall be exempt from transfers for central service expenses pursuant to section 36-27, and reimbursements for departmental administration expenses pursuant to section 36-30.]"

SECTION 36. Section 321-432, Hawaii Revised Statutes, is repealed.

["[§321-432] Public health nursing services special fund. (a) There is established within the state treasury a special fund to be known as the public health nursing services special fund. The special fund shall be administered and expended by the department of health in accordance with this section.

(b) The department shall expend the special funds to provide ongoing case management services and to provide staff training in case management services in collaboration with the department of human services' medicaid early and periodic screening, diagnosis, and treatment program, including but not limited to:

(1) Assessment of children who are medically fragile to determine service needs;

(2) Development of a specific care plan;

(3) Referral for and linkages to services to implement the specific care plan; and

(4) Monitoring and follow-up.

(c) The special fund shall consist of medicaid reimbursements received by the department for case management services provided to families of medically fragile children.]"

SECTION 37. Section 346-318, Hawaii Revised Statutes, is repealed.

["[§346-318] Hawaii Rx special fund. (a) There is established within the state treasury, to be administered by the department, the Hawaii Rx special fund into which shall be deposited:

(1) All moneys received from manufacturers who pay rebates as provided in section 346-314;

(2) Appropriations made by the legislature to the fund; and

(3) Any other revenues designated for the fund.

(b) Moneys in the Hawaii Rx special fund shall be used for the following purposes:

(1) Reimbursement payments to pharmacies for discounts provided to program participants;

(2) The cost of administering the Hawaii Rx program, including salary and benefits of employees, computer costs; and

(3) Any other purpose deemed necessary by the department for the purpose of operating and administering the Hawaii Rx program.

All interest on special fund balances shall accrue to the special fund. Upon dissolution of the Hawaii Rx special fund, any unencumbered moneys in the fund shall lapse to the general fund.]"

SECTION 38. Section 302A-1504.5, Hawaii Revised Statutes, is repealed.

["§302A-1504.5 School-level minor repairs and maintenance special fund. There is established within the state treasury a special fund to be known as the school-level minor repairs and maintenance special fund, into which shall be deposited all moneys collected pursuant to section 235-102.5(b), and any other moneys received by the department in the form of grants and donations for school-level minor repairs and maintenance. The special fund shall be administered by the department and used to fund school-level minor repairs and maintenance.]"

SECTION 39. Section 302A-1502.5, Hawaii Revised Statutes, is repealed.

["[§302A-1502.5] School repair and maintenance fund. (a) There is established the school repair and maintenance fund (hereinafter, "fund") as a separate fund of Helping Hands Hawaii, a Hawaii nonprofit organization. Moneys received from the state, county, or federal government, private contributions of cash or other property, and the income and capital gains earned by the fund shall constitute its assets.

(b) Helping Hands Hawaii shall expend moneys in the form of either grants to organizations or contracts with private vendors from the fund for the repair and maintenance of public schools in Hawaii in accordance with this section.

(c) The fund may receive contributions, grants, endowments, or gifts in cash or otherwise from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. The legislature intends that the public and private sectors work together as partners in securing contributions for the fund, and that Helping Hands Hawaii, through its project, Hawaii 3R's, assist the public and private sectors in reviewing and investigating all potential funding sources. The State may appropriate moneys to the fund; provided that any appropriations made by the State are not intended to supplant the funding of any existing public school repair and maintenance programs, including school-level minor repairs and maintenance accounts established under section 302A-1504.

(d) Helping Hands Hawaii shall appoint the members of the Hawaii school maintenance and repair advisory board, which shall be responsible for:

(1) Soliciting and otherwise raising funds for the fund;

(2) Establishing criteria for the expenditure of funds;

(3) Reviewing grant proposals utilizing criteria established by Helping Hands Hawaii; and

(4) Making recommendations for grants and other specific expenditures.

Members of the advisory board shall be stakeholders in Hawaii's public educational system, including students, parents, alumni, principals, community and business leaders, and representatives from the department of education and the department of accounting and general services, who shall be represented on the advisory board.

(e) The aggregate principal sum deposited in the fund, and any income and capital gains earned by the fund but not expended for administration, shall be invested in accordance with the provisions of Helping Hands Hawaii in a manner intended to maximize the rate of return on investment of the fund.

(f) There may be an endowment component of the funds.

(g) The use of any state moneys may be restricted by the legislation appropriating these moneys to the fund.

(h) Helping Hands Hawaii is authorized to expend the principal from the fund for the purposes of the fund.

(i) Any organization submitting a proposal to Helping Hands Hawaii for fund moneys shall meet all of the following standards at the time of application:

(1) Be a for-profit organization duly registered under the laws of the State, or be a nonprofit organization determined by the Internal Revenue Service to be exempt from the federal income tax, or be an agency of the State or a county;

(2) In the case of a nonprofit organization, have a governing board whose members have no material conflict of interest and serve without compensation;

(3) In the case of an applicant that is not a state or county government agency, have bylaws or policies that describe the manner in which business is conducted and policies that relate to the management of potential conflict of interest situations;

(4) Have experience with the project or in the program area for which the proposal is being made; and

(5) Be licensed and accredited, as applicable, in accordance with the requirements of federal, state, and county governments.

(j) All proposals submitted to Helping Hands Hawaii for fund moneys shall be approved by the department of accounting and general services for consistency in meeting design and materials standards for public schools.

(k) Organizations or agencies to which fund moneys are awarded shall agree to comply with the following conditions before receiving the award:

(1) Employ or have under contract persons qualified to engage in the activity to be funded;

(2) Comply with applicable federal, state, and county laws; and

(3) Comply with any other requirements prescribed by Helping Hands Hawaii to ensure adherence by the recipient of the award with applicable federal, state, and county laws and with the purposes of this section.

(l) Chapter 103D shall not apply to organizations or agencies that apply for grants or contracts under this section; provided that Helping Hands Hawaii shall be held accountable for the use of the funds under a contract with the department of accounting and general services.

(m) Any contracts awarded by Helping Hands Hawaii shall be made under as much competition as is practical to execute its purposes.

(n) The fund shall be audited annually by an independent auditor. The results of each annual audit shall be submitted to the department of accounting and general services not later than thirty days from the date Helping Hands Hawaii receives the audit results. In addition, Helping Hands Hawaii shall retain for a period of three years and permit the department of accounting and general services, the department of education, state legislators, and the auditor, or their duly authorized representatives, to inspect and have access to any documents, papers, books, records, and other evidence that is pertinent to the fund.

(o) The fund shall not be placed in the state treasury, and the State shall not administer the fund, nor shall the State be liable for the operation or solvency of the fund, Helping Hands Hawaii, or Hawaii 3R’s.

(p) For every dollar of state moneys granted by the fund to the project, there shall be a minimum of $1 in value matched by Helping Hands Hawaii from private, federal, county, or community sources.

[(q)] The state comptroller shall submit an annual report of the progress of the school repair and maintenance fund no later than twenty days prior to the convening of the regular sessions of the legislature.]"

SECTION 40. Section 184-3.4, Hawaii Revised Statutes, is repealed.

["§184-3.4 State parks special fund. (a) There is established within the state treasury a fund to be known as the state parks special fund, into which shall be deposited:

(1) All proceeds collected by the state parks programs involving park user fees, any leases or concession agreements, the sale of any article purchased from the department to benefit the state parks programs, or any gifts or contributions; provided that proceeds derived from the operation of Iolani Palace shall be used to supplement its educational and interpretive programs; and

(2) Transient accommodations tax revenues pursuant to section 237D-6.5(b)(2); provided that these moneys shall be expended in response to a master plan developed in coordination with the Hawaii tourism authority.

(b) The department shall expend the moneys from the state parks special fund for the following purposes:

(1) Permanent and temporary staff positions;

(2) Planning and development of state parks programs, including the aina hoomalu state parks program;

(3) Construction, repairs, replacement, additions, and extensions of state parks facilities;

(4) Operation and maintenance costs of state parks and state parks programs; and

(5) Administrative costs of the division of state parks.]"

SECTION 41. 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 42. Section 201-113, Hawaii Revised Statutes, is repealed.

["[§201-113] Hawaii television and film development special fund. (a) There is established in the state treasury the Hawaii television and film development special fund into which shall be deposited:

(1) Appropriations by the legislature;

(2) Donations and contributions made by private individuals or organizations for deposit into the fund;

(3) Grants provided by governmental agencies or any other source; and

(4) Any profits or other amounts received from venture capital investments.

(b) The fund shall be used by the board to assist in, and provide incentives for, the production of eligible Hawaii projects that are in compliance with criteria and standards established by the board in accordance with rules adopted by the board pursuant to chapter 91. In particular, the board shall adopt rules to provide for the implementation of the following programs:

(1) A grant program. The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for grants. Applications for grants shall be made to the board and shall contain such information as the board shall require by rules adopted pursuant to chapter 91. At a minimum, the applicant shall agree to the following conditions:

(A) The grant shall be used exclusively for eligible Hawaii projects;

(B) The applicant shall have applied for or received all applicable licenses and permits;

(C) The applicant shall comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

(D) The applicant shall comply with other requirements as the board may prescribe;

(E) All activities undertaken with funds received shall comply with all applicable federal, state, and county statutes and ordinances;

(F) The applicant shall indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and procure sufficient insurance to provide this indemnification if requested to do so by the department;

(G) The applicant shall make available to the board all records the applicant may have relating to the project, to allow the board to monitor the applicant's compliance with the purpose of this chapter; and

(H) The applicant, to the satisfaction of the board, shall establish that sufficient funds are available for the completion of the project for the purpose for which the grant is awarded; and

(2) A venture capital program. The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for venture capital investments in eligible Hawaii projects. The program may include a written agreement between the borrower and the board, as the representative of the State, that as consideration for the venture capital investment made under this part, the borrower shall share any royalties, licenses, titles, rights, or any other monetary benefits that may accrue to the borrower pursuant to terms and conditions established by the board by rule pursuant to chapter 91. Venture capital investments may be made on such terms and conditions as the board shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of this part.]"

SECTION 43. Section 28-15, Hawaii Revised Statutes, is repealed.

["[§28-15] Tobacco enforcement special fund. (a) There is established in the state treasury the tobacco enforcement special fund, into which shall be deposited the tobacco settlement moneys as provided by section 328L-2(a).

(b) The tobacco enforcement special fund shall be administered by the department of the attorney general and shall be used for administering, operating, monitoring, and ensuring compliance with and enforcement of:

(1) The Master Settlement Agreement as defined in chapter 675 and any other statutes or programs relating to that agreement;

(2) Chapter 675;

(3) Tobacco prevention programs; and

(4) Any other requirement deemed necessary to carry out the purposes of the fund.

(c) All unencumbered and unexpended moneys in excess of $350,000 remaining on balance in the tobacco enforcement special fund at the close of June 30 of each year shall lapse to the credit of the Hawaii tobacco settlement special fund.

(d) The department of the attorney general shall submit a report to the legislature, no later than twenty days prior to the convening of each regular session, providing an accounting of the receipts and expenditures of the fund.]"

SECTION 44. Section 201B-11, Hawaii Revised Statutes, is repealed.

["PART II. TOURISM SPECIAL FUND; EXEMPTIONS; REPORTS

§201B-11 Tourism special fund. (a) There is established in the state treasury the tourism special fund, into which shall be deposited:

(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5; and

(2) Appropriations by the legislature to the tourism special fund; and

(3) Gifts, grants, and other funds accepted by the authority.

(b) Moneys in the tourism special fund may be placed in interest-bearing accounts or otherwise invested by the authority until such time as the moneys may be needed. All interest accruing from the investment of these moneys shall be credited to the tourism special fund.

(c) Moneys in the tourism special fund shall be used by the authority for the purposes of this chapter, provided that:

(1) Not more than 3.5 per cent of this amount shall be used for administrative expenses, including $15,000 for a protocol fund to be expended at the discretion of the executive director; and

(2) At least $1,000,000 shall be made available to support efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors.]"

SECTION 45. Section 264-19, Hawaii Revised Statutes, is repealed.

["[§264-19] Transportation improvement special fund. (a) There is created within the state treasury the transportation improvement special fund to fund qualified transportation projects and to receive reimbursements from private developers who have been advanced public funds to fulfill the conditions of land use development relating to transportation.

The director may expend from the special fund such sums as are necessary to advance transportation projects, including administrative expenses, to the extent permissible:

(1) When such projects:

(A) Have been identified in or are consistent with the statewide transportation plan adopted pursuant to chapter 279A; and

(B) Satisfy all applicable federal and state eligibility requirements; or

(2) When the director determines that funds previously authorized for the aforementioned projects are inadequate or any delay in the completion of such projects would unnecessarily increase their cost or intensify undesirable transportation conditions.

(b) Expenditures from the special fund shall be made on vouchers approved by the director or such other officer as may be designated by the director.

(c) There shall be credited to the special fund all reimbursements and any interest earned or penalty accrued on late payments thereon received from developers who have been advanced public funds to fulfill the conditions of land use development relating to transportation or other transportation requirements imposed upon such developers.

(d) Expenditures from the special fund may not be made by the director without appropriation by the legislature. No expenditure shall be made from, and no obligation shall be incurred against, the special fund in excess of the amount standing to the credit of the special fund or for any purpose for which moneys from the special fund may not lawfully be expended.

(e) The department of transportation shall prepare and submit an annual report to the legislature on the use of the transportation improvement special fund which shall include, but not be limited to:

(1) The [special] fund balance and the expenses made from the [special] fund for the immediately preceding fiscal year; and

(2) Proposed appropriations from the [special] fund for the next fiscal year.

This report shall be submitted to the legislature no later than twenty days prior to the convening of each legislative session.

(f) The director may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of, and to administer, this section.

(g) As used in this section:

"Director" means the director of transportation.

"Special fund" means the transportation improvement special fund.]"

SECTION 46. Section 338-14.6, Hawaii Revised Statutes, is repealed.

["[§338-14.6] Vital statistics improvement special fund. (a) There is established within the state treasury a special fund to be known as the vital statistics improvement special fund. The fund shall be administered and expended by the department of health.

(b) Moneys in the fund shall be used by the department of health for the modernization and automation of the vital statistics system in this State. These proceeds shall not be used to supplant any other moneys previously allocated to this program necessary for the daily operation of the system of vital statistics.

(c) The fund shall consist of fees remitted pursuant to section 338-14.5. All realizations of the fund shall be subject to the conditions specified in subsection (b).]"

SECTION 47. Section 340B-3.5, Hawaii Revised Statutes, is repealed.

["[§340B-3.5] Wastewater treatment certification board special fund. (a) There is established in the state treasury a special fund to be known as the wastewater treatment certification board special fund. The following moneys collected by the board shall be deposited into the special fund:

(1) Registration fees for examinations;

(2) Renewal fees;

(3) Reciprocity fees; and

(4) Temporary certificates fees.

All interest earned or accrued on moneys deposited into the special fund shall become a part of the special fund.

(b) All moneys paid into the special fund shall be expended by the board to finance its operations.]"

SECTION 48. Section 174C-5.5, Hawaii Revised Statutes, is repealed.

["[§174C-5.5] Water resource management fund. (a) There is established in the department a special fund to be designated as the water resource management fund. The fund shall be administered by the commission. The water resource management fund shall be used for the following:

(1) Monitoring programs and activities concerning water resource quality, protection, and management;

(2) Research programs and activities concerning water conservation and investigation of alternative sources of water;

(3) Preparation and dissemination of information to the public concerning activities authorized under this chapter;

(4) Data collection, development, and updating of long-range planning documents authorized under this chapter; and

(5) Any other protection, management, operational, or maintenance functions authorized and deemed necessary by the commission, including but not limited to funding permanent or temporary staff positions.

(b) The following shall be deposited into the water resource management fund:

(1) Appropriations by the legislature to the water resource management fund;

(2) All fees and administrative charges collected under this chapter or any rule adopted thereunder;

(3) Moneys collected as fines or penalties imposed under this chapter or any rule adopted thereunder;

(4) Moneys derived from public and private sources to benefit water resource protection and management;

(5) Any moneys collected from the sale of retail items by the department related to water resources;

(6) Any other moneys collected pursuant to chapter 174C; and

(7) Moneys derived from interest, dividend, or other income from the above sources.]"

PART III

SECTION 49. The purpose of this part is to repeal certain special funds following the recommendations of the auditor.

SECTION 50. Section 103-8.5, Hawaii Revised Statutes, is repealed.

["§103-8.5 Works of art special fund. (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.

(b) The works of art special fund shall be used solely for the following purposes:

(1) Costs related to the acquisition of works of art, including any consultant or staff services required to carry out the art in public places and relocatable works of art programs;

(2) Site modifications, display, and interpretive work necessary for the exhibition of works of art;

(3) Upkeep services, including maintenance, repair, and restoration of works of art;

(4) Storing and transporting works of art.

(c) The one per cent amount, which is included in all capital improvement appropriations, shall be calculated at the time the appropriation bills are signed into law. The moneys shall be transferred into the works of art special fund upon availability of moneys from the appropriations. Each agency receiving capital improvement appropriations shall calculate the one per cent amount and transfer the moneys into the works of art special fund.

(d) The comptroller and the state foundation on culture and the arts shall decide on the specific art objects to acquire, giving first consideration to placing appropriate pieces of art at the locations of the original appropriation.

The selection of, commissioning artists for, reviewing of design, execution, and placement of, and the acceptance of works of art shall be the responsibility of the comptroller and the state foundation on culture and the arts in consultation with the affected agency or department.

Expenditures from the works of art special fund shall be made by the comptroller.

(e) The comptroller shall:

(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;

(2) Ensure that each agency calculates its one per cent amount correctly; and

(3) Ensure that each agency transfers the correct amount to the works of art special fund in a timely manner.

(f) The comptroller and the executive director shall track amounts due from each agency under the one per cent requirement as provided in this section.]"

SECTION 51. Section 36-32, Hawaii Revised Statutes, is repealed.

["§36-32 State educational facilities improvement special fund. (a) There is created in the treasury of the State the state educational facilities improvement special fund, into which shall be deposited a portion of all general excise tax revenues collected by the department of taxation under section 237-31. The special fund shall be used solely to plan, design, acquire lands for and to construct public school facilities and to provide equipment and technology infrastructure to improve public schools and other facilities under the jurisdiction of the department of education, except public libraries. In addition, activities of the department of education intended to eliminate the gap between the facility needs of schools and available resources shall be eligible for funding from the special fund. Expenditures from the special fund shall be limited to projects authorized by the legislature and shall be subject to sections 37-31, and 37-33 through 37-40. Appropriations or authorizations from the special fund shall be expended by the comptroller.

(b) The department of accounting and general services shall submit an annual report to the legislature, which shall include a financial statement of the special fund and the status of projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session.]"

SECTION 52. Section 304-8.8, Hawaii Revised Statutes, is repealed.

["[§304-8.8] University of Hawaii at Manoa malpractice special fund. There is established a special fund to be known as the University of Hawaii at Manoa malpractice special fund, which shall be used for costs arising from the defense and settlement of claims against the university, its students, or its faculty for professional malpractice in programs which provide professional services, including but not limited to clinical medicine, nursing, and law; provided that this fund shall not be used to fund settlements funded through professional liability insurance or through special appropriations of the legislature.

The university may establish appropriate charges and fees to individuals who are provided professional liability coverage under this section, the proceeds of which shall be deposited in accounts and credited to the University of Hawaii at Manoa malpractice special fund.]"

SECTION 53. Section 206J-17, Hawaii Revised Statutes, is repealed.

["§206J-17 Aloha Tower fund. (a) There is created the Aloha Tower fund. All:

(1) Moneys;

(2) Rentals;

(3) Charges;

(4) Other revenues of the development corporation; and

(5) Moneys or charges received by the department of business, economic development, and tourism;

including reimbursements for costs and staff services as a result of planning, development, or redevelopment of the lands located seaward of Nimitz Highway between Pier 4 and the Honolulu International Airport shall be deposited into the fund.

(b) The development corporation may establish a separate account with respect to each issue of bonds issued under this chapter and direct that the moneys, rentals, charges, and other revenues pledged to the payment of the bond issue be credited to that account and, as permitted by section 206J-12(g)(7), designate a trustee to receive and receipt for, hold, and administer the moneys in the account. Moneys credited to a separate account held by a trustee may be paid directly to the trustee; provided that appropriate entries are made for purposes of accounting.

(c) The moneys on deposit in the fund shall be used for the purposes of this chapter and for the development, redevelopment, or improvement of the Honolulu Waterfront located seaward of Nimitz Highway between Pier 4 and the Honolulu International Airport.]"

SECTION 54. Section 227D-5, Hawaii Revised Statutes, is repealed.

["§227D-5 Special fund. There is established in the state treasury a fund to be known as the natural energy laboratory of Hawaii authority special fund, into which shall be deposited all moneys and fees from tenants or other users of the authority's parks, projects, other leased facilities, and other services and publications as well as any grants or gifts received by the authority. All moneys in the fund are appropriated for the purposes of and shall be expended by the authority for the operation, maintenance, and management of its parks, projects, facilities, services, and publications, and for the design and construction of new facilities and the renovation of or addition to existing facilities.]"

SECTION 55. Section 206M-15.5, Hawaii Revised Statutes, is repealed.

["§206M-15.5 High technology special fund. There is established in the state treasury a fund to be known as the high technology special fund, into which shall be deposited, except as otherwise provided by section 206M-17, all moneys, fees, and equity from tenants, qualified persons, or other users of the development corporation's industrial parks, projects, other leased facilities, and other services and publications; provided that the total amount of moneys in the fund shall not exceed $3,000,000 at the end of any fiscal year. All moneys in the fund are appropriated for the purposes of and shall be expended by the development corporation for the operation, maintenance, and management of its industrial parks, projects, facilities, services, and publications, and to pay the expenses in administering the special purpose revenue bonds of the development corporation or in carrying out its project agreements.]"

SECTION 56. Section 302A-1310, Hawaii Revised Statutes, is repealed.

["§302A-1310 Out-of-school time instructional programs; funds, expenditures. All moneys received by and for the public out-of-school time instructional programs from tuition and other fees or from any other source shall be deposited in a special out-of-school time instructional program fund; and except as otherwise provided by the legislature, all expenditures for the operation of public out-of-school time instructional programs shall be made from this fund.]"

SECTION 57. Section 166-10, Hawaii Revised Statutes, is repealed.

["§166-10 Agricultural park special fund. (a) There is created in the state treasury a special fund to be designated as the agricultural park special fund. The proceeds in the fund shall be used for the following purposes:

(1) Payment of agricultural park lease rents of privately owned lands under lease to the State pursuant to sections 171-112 and 166-3;

(2) Establishing, operating, maintaining, and improving infrastructure improvements in agricultural parks designated by the department pursuant to section 166-3; and

(3) Any other purposes deemed necessary by the department for the purpose of maintaining and operating those agricultural parks and related facilities designated by the department pursuant to section 166-3.

For the purpose of paragraph (2), infrastructure improvements may include, but shall not be limited to: irrigation water system projects, wind power or hydro power and pumping systems, waste disposal systems, domestic water systems, roads, street lights, land and roads drainage, and bridges.

(b) Moneys appropriated for the purpose of the fund; any other provision of the law to the contrary notwithstanding, all moneys received or collected from an agricultural park project designated pursuant to section 166-3, including residential and agricultural lot lease rents; and all money collected or received by the department for the use and maintenance of domestic and irrigation water systems within an agricultural park and other systems enumerated in subsection (a) shall be deposited into the agricultural park special fund. All interest earned or accrued on moneys deposited in the fund shall become a part of the fund. Moneys in the fund shall be expended upon warrants drawn by the comptroller.]"

SECTION 58. Section 334-15, Hawaii Revised Statutes, is repealed.

["§334-15 Mental health and substance abuse special fund; established. (a) There is established a special fund to be known as the mental health and substance abuse special fund into which shall be deposited all revenues and other moneys collected from certification programs and treatment services rendered by the mental health and substance abuse programs operated by the State. Notwithstanding any other law to the contrary, the department is authorized to establish separate accounts within the special fund for depositing moneys received from certification programs and from each mental health and substance abuse program. Moneys deposited into the respective accounts of each program shall be used for the payment of the operating expenses of the respective program.

(b) The director shall submit a report to the legislature, not later than twenty days prior to the convening of each regular session, which identifies for each account in the special fund, the account balance and ceiling increase, any transfers and expenditures made, and the purposes of the expenditures.]"

SECTION 59. Section 393-41, Hawaii Revised Statutes, is repealed.

["PART IV. PREMIUM SUPPLEMENTATION

[§393-41] Establishment of special premium supplementation fund. There is established in the treasury of the State, separate and apart from all public moneys or funds of the State, a special fund for premium supplementation which shall be administered exclusively for the purposes of this chapter. All premium supplementations payable under this part shall be paid from the fund. The fund shall consist of (1) all money appropriated by the State for the purposes of premium supplementation under this part and (2) all fines and penalties collected pursuant to this chapter.]"

SECTION 60. Section 328L-3, Hawaii Revised Statutes, is repealed.

["§328L-3 Emergency and budget reserve fund. (a) There is established in the state treasury the emergency and budget reserve fund which shall be a special fund administered by the director of finance, into which shall be deposited:

(1) Twenty-four and one-half per cent of the moneys received from the tobacco settlement moneys under section 328L-2(b)(1);

(2) Appropriations made by the legislature to the fund.

(b) All interest earned from moneys in the emergency and budget reserve fund shall be credited to the general fund.

(c) Expenditures from the emergency and budget reserve fund shall be a temporary supplemental source of funding for the State during times of emergency, economic downturn, or unforeseen reduction in revenues. No expenditures shall be made from the emergency and budget reserve fund except pursuant to appropriations. The general appropriations bill or the supplemental appropriations bill, as defined in section 9 of article VII of the Constitution of the State of Hawaii, shall not be used to appropriate moneys from the emergency and budget reserve fund. The governor, through an appropriations bill, may recommend expenditures from the emergency and budget reserve fund by setting forth the purposes of the expenditures consistent with subsection (d), the amounts, and the reasons justifying the necessity for the appropriations.

(d) The legislature may make appropriations from the fund for the following purposes:

(1) To maintain levels of programs determined to be essential to public health, safety, welfare, and education;

(2) To provide for counter cyclical economic and employment programs in periods of economic downturn;

(3) To restore facilities destroyed or damaged or services disrupted by disaster in any county; and

(4) To meet other emergencies when declared by the governor or determined to be urgent by the legislature.

Any act making appropriations from the emergency and budget reserve fund shall include a declaration of findings and purposes setting forth the purposes, the amounts, and the reasons why the appropriations are necessary and shall require a two-thirds majority vote of each house of the legislature.

(e) Appropriations for the following purposes from the emergency and budget reserve fund are specifically prohibited:

(1) To meet expenses of the legislature;

(2) To provide for salary adjustments for officials appointed pursuant to article V, section 6 or article VI, section 3 of the Constitution of the State of Hawaii and for others whose salaries are directly related to salaries of these officials; and

(3) To fund cost items in any collective bargaining contract.]"

PART IV

SECTION 61. Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§37- Special funds; automatic repeal. (a) Unless otherwise provided by the legislature in any law authorizing the establishment of any special fund as the means of financing,

all special funds in existence as of June 30, 2004, shall be repealed on June 30, 2005, provided that prior to the repeal of any special fund, the administrator of the fund shall deposit to the credit of the state general fund, all unencumbered and unexpended balances remaining in the fund.

(b) Prior to the regular session immediately preceding the date of the repeal of any special fund, the administrator of the fund shall submit to the legislature, the budgetary request necessary to carry out the functions, duties, and the operations of the program, activity, or undertaking previously financed under the proceeds of the special fund."

PART V

SECTION 62. If the receipt of federal funds provided to the state would be jeopardized by the implementation of PART II of this Act with respect to one or more special funds, as determined by the attorney general's office, then PART II of this Act shall be void with respect to that special fund; provided, however, that PART II of this Act shall remain in effect with respect to all other special funds.

PART VI

SECTION 63. The legislature recognizes that there are a number of conforming amendments to the Hawaii Revised Statutes that need to be made to implement this Act.

PART VII

SECTION 64. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 65. This Act shall take effect on July 1, 2003 provided that PART IV shall take effect on July 1, 2004.

INTRODUCED BY:

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