Report Title:

Relating to State Finances

Description:

Eliminates certain funds that do not meet the criteria for continuation, and transfers excess balances from these special and revolving funds to the general fund. (SB420 HD1)

THE SENATE

S.B. NO.

420

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

RELATING TO STATE Finances.

 

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

PART I

SECTION 1. The purpose of this part is to:

(1) Repeal certain revolving and special funds that no longer serve the purpose for which they were originally established, are not an appropriate means of financing for the programs or activities, or are not financially self-sustaining;

(2) Transfer unexpended and unencumbered balances in the funds to the state general fund; and

(3) Provide general fund appropriations for fiscal year 2003-2004 and fiscal year 2004-2005 to finance the continuation of selected programs or activities.

SECTION 2. Section 125C-7, Hawaii Revised Statutes, is repealed.

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

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

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

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

SECTION 3. Section 201-15, Hawaii Revised Statutes, is repealed.

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

SECTION 4. 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 5. Section 209-34, Hawaii Revised Statutes, is repealed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SECTION 7. Subpart N of part III of chapter 201G, Hawaii Revised Statutes, is repealed.

SECTION 8. On July 1, 2003, the director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the Hawaii film facility special fund established pursuant to section 201-15, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 9. On July 1, 2003, the director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the clean Hawaii fund established pursuant to section 201-106, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 10. Any revenues owing to the homes revolving fund abolished by this Act shall be deposited into the dwelling unit revolving fund established by section 201G-411, Hawaii Revised Statutes.

SECTION 11. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the state disaster revolving loan fund established pursuant to section 209-34, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 12. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the Hawaii innovation development fund established pursuant to section 211E-2, Hawaii Revised Statutes, as of June 30, 2003.

SECTION 13. Pursuant to section 9 of Act 142, Session Laws of Hawaii 1998, as amended by section 18 of Act 163, Session Laws of Hawaii 1999, as amended by section 19 of Act 39, Session Laws of Hawaii 2002, the boiler and elevator safety revolving fund is repealed July 31, 2003. The director of finance shall transfer to the credit of the state general fund, all unexpended and unencumbered balances remaining in the boiler and elevator safety revolving fund established pursuant to section 397-5.5, Hawaii Revised Statutes, as of July 30, 2003.

SECTION 14. There is appropriated out of the general revenues of the State of Hawaii the sum of $175,431 or so much thereof as may be necessary for fiscal year 2003-2004 and the sum of $175,431 or so much thereof as may be necessary for fiscal year 2004-2005 to operate the Hawaii film studio. The sums appropriated shall be expended by the department of business, economic development and tourism.

PART II

SECTION 15. The legislature determines that there is in the cigarette tax stamp enforcement special fund at least $600,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the cigarette tax stamp enforcement special fund to the general fund the sum of $600,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 16. The legislature determines that there is in the medicaid investigations recovery fund at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the medicaid investigations recovery fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 17. The legislature determines that there is in the litigation settlement clearance account at least $2,500,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the litigation settlement clearance account to the general fund the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 18. The legislature determines that there is in the Aloha Tower fund at least $1,600,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Aloha Tower fund to the general fund the sum of $1,600,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 19. The legislature determines that there is in the dwelling unit revolving fund at least $8,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the dwelling unit revolving fund to the general fund the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 20. The legislature determines that there is in the teachers' housing revolving fund at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the teachers' housing revolving fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

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

SECTION 22. The legislature determines that there is in the Waialua loan and subsidy account at least $11,566 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the Waialua loan and subsidy account to the general fund the sum of $11,566 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 23. The legislature determines that there is in the compliance resolution fund at least $7,700,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the compliance resolution fund to the general fund the sum of $7,700,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 24. The legislature determines that there is in the noise, radiation and indoor air quality special fund at least $100,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the noise, radiation and indoor air quality special fund to the general fund the sum of $100,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 25. The legislature determines that there is in the spouse and child abuse special account at least $400,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the spouse and child abuse special account to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 26. The legislature determines that there is in the bureau of conveyances special fund at least $2,000,000 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the bureau of conveyances special fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 27. The legislature determines that there is in the statewide planning and geographic information system special fund at least $7,692 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the statewide planning and geographic information system special fund to the general fund the sum of $7,692 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 28. The legislature determines that there is in the homes revolving fund at least $3,811,961 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the homes revolving fund to the general fund the sum of $3,811,961 or so much thereof as may be necessary for fiscal year 2003-2004.

SECTION 29. The legislature determines that there is in the petroleum products control special fund at least $23,122 in excess of the requirements of the fund. On July 1, 2003, the director of finance is authorized to transfer from the petroleum products control special fund to the general fund the sum of $23,122 or so much thereof as may be necessary for fiscal year 2003-2004.

PART III

SECTION 30. Statutory material to be repealed is bracketed and stricken.

SECTION 31. This Act shall take effect on July 1, 2003, provided that sections 2, 3, 4, 5, 6, and 7 shall take effect on July 2, 2003.