HOUSE OF REPRESENTATIVES

H.B. NO.

500

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE STATE BUDGET.

 

 

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

 


PART I. GENERAL PROVISIONS

SECTION 1. SHORT TITLE. This Act shall be known and may be cited as the General Appropriations Act of 2015.

SECTION 2. DEFINITIONS. Unless otherwise clear from the context, as used in this Act:

(a) "Program ID" means the unique identifier for the specific program, and consists of the abbreviation for the organization responsible for carrying out the program, followed by the organization number for the program.

(b) "Expending agency" means the executive department, independent commission, bureau, office, board, or other establishment of the state government (other than the legislature, office of Hawaiian affairs, and judiciary), the political subdivisions of the State, or any quasi‑public institution supported in whole or in part by state funds, which is authorized to expend specified appropriations made by this Act.

Abbreviations where used to denote the expending agency shall mean the following:

AGR Department of Agriculture

AGS Department of Accounting and General Services

ATG Department of the Attorney General

BED Department of Business, Economic Development and Tourism

BUF Department of Budget and Finance

CCA Department of Commerce and Consumer Affairs

DEF Department of Defense

EDN Department of Education

GOV Office of the Governor

HHL Department of Hawaiian Home Lands

HMS Department of Human Services

HRD Department of Human Resources Development

HTH Department of Health

LBR Department of Labor and Industrial Relations

LNR Department of Land and Natural Resources

LTG Office of the Lieutenant Governor

PSD Department of Public Safety

SUB Subsidies

TAX Department of Taxation

TRN Department of Transportation

UOH University of Hawaii

CCH City and County of Honolulu

COH County of Hawaii

COK County of Kauai

COM County of Maui

(c) "Means of financing" (or "MOF") means the source from which funds are appropriated or authorized to be expended for the programs and projects specified in this Act. All appropriations are followed by letter symbols. Such letter symbols, where used, shall have the following meanings:

A general funds

B special funds

C general obligation bond fund

D general obligation bond fund with debt service cost to be paid from special funds

E revenue bond funds

J federal aid interstate funds

K federal aid primary funds

L federal aid secondary funds

M federal aid urban funds

N federal funds

P other federal funds

R private contributions

S county funds

T trust funds

U interdepartmental transfers

W revolving funds

X other funds

(d) "Position ceiling" means the maximum number of permanent positions that an expending agency is authorized for a particular program during a specified period or periods, as denoted by an asterisk.

(e) "Capital project number" means the official number of the capital project, as assigned by the responsible organization.

PART II. PROGRAM APPROPRIATIONS

SECTION 3. APPROPRIATIONS. The following sums, or so much thereof as may be sufficient to accomplish the purposes and programs designated herein, are hereby appropriated or authorized, as the case may be, from the means of financing specified to the expending agencies designated for the fiscal biennium beginning July 1, 2015 and ending June 30, 2017. The total expenditures and the number of positions in each fiscal year of the biennium shall not exceed the sums and the number indicated for each fiscal year, except as provided elsewhere in this Act, or as provided by general law.


PART III. PROGRAM APPROPRIATION PROVISIONS

ECONOMIC DEVELOPMENT

SECTION 4. Provided that of the general fund appropriation for agribusiness development and research (AGR 161), the sum of $50,601 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $50,601 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be deposited into the Hawaii agricultural development revolving fund to be expended for the purposes of the fund.

EMPLOYMENT

SECTION 5. Provided that of the general fund appropriation for disability compensation program (LBR 183), the sum of $500,000 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $500,000 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be deposited into the trust fund for premium supplementation to be expended for the purposes of the fund.

ENVIRONMENTAL PROTECTION

SECTION 6. Provided that of the special fund appropriation for native resources and fire protection program (LNR 402), the sum of $4,000,000 or so much thereof as may be necessary and available for fiscal year 2015‑2016 and the sum of $4,000,000 or so much thereof as may be necessary and available for fiscal year 2016‑2017 shall be expended by the department of land and natural resources as directed by the Hawaii invasive species council to prevent the introduction of invasive species, implement invasive species control, conduct research and outreach, and eradicate established invasive species; provided further that the funds shall not be expended for any other purpose; provided further that any unexpended funds shall lapse to their respective funds; provided further that the funds to be expended for the program are matched by an equivalent amount, up to $4,000,000, in new federal, county, private, and other non‑state funds or in‑kind services for each fiscal year; provided further that the department shall jointly work with other agencies and the community; and provided further that portions of this appropriation may be transferred to other state departments to be expended for activities related to the statewide invasive species prevention, control, research, and outreach partnership program.

SOCIAL SERVICES

SECTION 7. Provided that of the general fund appropriation for planning and development for Hawaiian homesteads (HHL 602),

the sum of $9,632,000 for fiscal year 2015‑2016 and the sum of $9,632,000 for fiscal year 2016‑2017 shall be deposited into the Hawaiian home administration account to be expended only for administrative and operating expenses of the department of Hawaiian home lands. This sum is provided in light of the ruling in the opinion of the Hawaii supreme court in Nelson v. Hawaiian Homes Commission, 127 Hawaii 185, 198‑203, 279, 292‑297 (2012), that what constitutes "sufficient sums" for "administration and operating" expenses, as those terms are used in article XII, section 1 of the State Constitution, is judicially determinable. This provision shall not be construed to establish any amount that the State may be legally required to appropriate in the Nelson litigation or any similar case, or the State's position with regard thereto. In making this appropriation, the Legislature does not intend to bind or limit the positions the attorney general or any of the defendants may assert in the Nelson litigation or any similar case.

PUBLIC SAFETY

SECTION 8. Provided that of the general fund appropriation for amelioration of physical disasters (DEF 110), the sum of $500,000 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $500,000 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be expended for relief from major disasters pursuant to section 127‑11, Hawaii Revised Statutes; provided further that any funds not expended for this purpose shall lapse to the general fund.

GOVERNMENT-WIDE SUPPORT

SECTION 9. Provided that of the general fund appropriation for the office of the governor (GOV 100), the sum of $10,000 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $10,000 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be used for the governor's "contingent fund" pursuant to section 37‑71(f) of the Hawaii Revised Statutes; and provided further that such funds may be transferred to other programs and agencies and allotted, with the approval of the governor, to meet contingencies as they arise.

SECTION 10. Provided that of the general fund appropriation for departmental administration and budget division (BUF 101), the sum of $400,000 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $400,000 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be used for up to 10.00 temporary exempt positions to provide backfill staff support for departments where permanent staffing has been assigned to work on the implementation of the enterprise resource planning project; provided further that the positions and funds may be transferred to the departments requiring temporary staff support with the approval of the governor.

SECTION 11. Provided that of the funds appropriated from the sources of funding indicated below to collective bargaining statewide (BUF 102), the following sums, or so much thereof as may be necessary, shall be used to fund all collective bargaining cost items in the agreement negotiated with the exclusive bargaining representative of collective bargaining unit seven (7) for fiscal biennium 2015‑2017:

FY 2015-2016 FY 2016-2017

General Funds $15,403,359 $29,396,397

Special Funds $ 1,244,110 $ 2,233,303

Federal Funds $ 473,722 $ 831,531

Other Federal Funds $ 3,944 $ 8,664

Revolving Funds $ 87,794 $ 181,721

SECTION 12. Provided that of the funds appropriated from the sources of funding indicated below to collective bargaining statewide (BUF 102), the following sums, or so much thereof as may be necessary, shall be used to fund the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees excluded from collective bargaining unit seven (7) for fiscal biennium 2015‑2017:

FY 2015-2016 FY 2016-2017

General Funds $1,836,174 $3,804,477

Special Funds $ 303,629 $ 621,257

Federal Funds $ 4,764 $ 9,719

Other Federal Funds $ 1,731 $ 3,532

Revolving Funds $ 15,125 $ 31,540

SECTION 13. Provided that of the general funds appropriated to collective bargaining statewide (BUF 102), the following sums, or so much thereof as may be necessary, shall be used to fund the Hawaii employer‑union health benefits trust fund costs in the agreement negotiated with the exclusive bargaining representative of collective bargaining unit seven (7) for fiscal biennium 2015‑2017:

FY 2015-2016 FY 2016-2017

General Funds $1,485,775 $2,725,483

SECTION 14. Provided that of the general funds appropriated to collective bargaining statewide (BUF 102), the following sums, or so much thereof as may be necessary, shall be used to fund the Hawaii employer‑union health benefits trust fund costs for state officers and employees excluded from collective bargaining who belong to the same compensation plans as those officers and employees within collective bargaining unit seven (7) for fiscal biennium 2015‑2017:

FY 2015-2016 FY 2016-2017

General Funds $65,079 $118,937

SECTION 15. Provided that of the general fund appropriation for health premium payments ‑ state (BUF 761), the sum of $163,615,000 or so much thereof as may be necessary for fiscal year 2015‑2016 and the sum of $245,812,000 or so much thereof as may be necessary for fiscal year 2016‑2017 shall be used to provide payments to pre‑fund other post‑employment benefits for the Hawaii employer‑union health benefits trust fund; provided further that the funds shall not be expended for any other purpose; and provided further that any unexpended funds shall lapse to the general fund.

PART IV. CAPITAL IMPROVEMENT PROJECTS

SECTION 16. CAPITAL IMPROVEMENT PROJECTS AUTHORIZED. The sums of money appropriated or authorized in part II of this Act for capital improvements shall be expended for the projects listed below. Accounting of the appropriations by the department of accounting and general services shall be based on the projects as such projects are listed in this section. Several related or similar projects may be combined into a single project if such combination is advantageous or convenient for implementation; and provided further that the total cost of the projects thus combined shall not exceed the total of the sum specified for the projects separately. (The amount after each cost element and the total funding for each project listed in this part are in thousands of dollars.)


PART V. CAPITAL IMPROVEMENT PROGRAM PROVISIONS

SECTION 17. Any law to the contrary notwithstanding, the appropriations under Act 178, Session Laws of Hawaii 2005, section 85, as amended and renumbered by Act 160, Session Laws of Hawaii 2006, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-6.07 $4,000,000 D"

SECTION 18. Any law to the contrary notwithstanding, the appropriations under Act 164, Session Laws of Hawaii 2011, section 36, as amended and renumbered by Act 106, Session Laws of Hawaii 2012, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-16 $111,852 C

A-16.1 76,416 D"

SECTION 19. Any law to the contrary notwithstanding, the appropriations under Act 134, Session Laws of Hawaii 2013, section 39, as amended and renumbered by Act 122, Session Laws of Hawaii 2014, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-1 $16,080,000 X"

PART VI. ISSUANCE OF BONDS

SECTION 20. AIRPORT REVENUE BONDS. The department of transportation is authorized to issue airport revenue bonds for airport capital improvement program projects authorized in part II and listed in part IV of this Act and designated to be financed by revenue bond funds or by general obligation bond funds with debt service cost to be paid from special funds, in such principal amount as shall be required to yield the amounts appropriated for such capital improvements program projects, and, if so determined by the department and approved by the governor, any additional principal amount as may be necessary by the department to pay interest on such airport revenue bonds during the estimated period of construction of the capital improvements program project for which such airport revenue bonds are issued, to establish, maintain, or increase reserves for the airport revenue bonds and to pay the expenses of issuance of such bonds. The airport revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time. The principal of and interest on airport revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable solely from and secured solely by the revenues from airports and related facilities under the ownership of the State or operated and managed by the department and the aviation fuel taxes levied and paid pursuant to sections 243‑4(a)(2) and 248‑8, Hawaii Revised Statutes, or such parts of either thereof as the department may determine, including rents, landing fees, and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of airports and related facilities and the furnishing and supplying of the services thereof, and passenger facility charges pursuant to section 261‑55, Hawaii Revised Statutes, as amended, and as determined by the department. The expenses of the issuance of such airport revenue bonds shall, to the extent not paid from the proceeds of such bonds, be paid from the airport revenue fund and passenger facility charge special fund as determined by the department.

The governor, in the governor's discretion, is authorized to use the airport revenue fund and passenger facility charge special fund to finance those projects authorized in part II and listed in part IV of this Act where the method of financing is designated to be by airport revenue bond funds.

SECTION 21. RENTAL MOTOR VEHICLE CUSTOMER FACILITY REVENUE BONDS. The department of transportation is authorized to issue rental motor vehicle customer facility revenue bonds for airport capital improvement program projects relating to consolidated rental car facilities authorized in part II and listed in part IV of this Act and designated to be financed by revenue bond funds with debt service cost to be paid from the rental motor vehicle customer facility charge special funds, as authorized by section 261‑5.6, Hawaii Revised Statutes, in such principal amount as shall be required to yield the amounts appropriated for such capital improvements program projects, and, if so determined by the department and approved by the governor, any additional principal amount as may be necessary by the department to pay interest on the rental motor vehicle customer facility revenue bonds during the estimated period of construction of the capital improvements program project for which the rental motor vehicle customer facility revenue bonds are issued, to establish, maintain, or increase reserves for the rental motor vehicle customer facility revenue bonds and to pay the expenses of issuance of the bonds. The rental motor vehicle customer facility revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time. The principal of and interest on rental motor vehicle customer facility revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable solely from and secured solely by the revenues from the rental motor vehicle surcharge tax and the rental motor vehicle customer facility charge special fund pursuant to section 261‑5.6, Hawaii Revised Statutes, as amended, and as determined by the department. The expenses of the issuance of such rental motor vehicle customer facility revenue bonds, to the extent not paid from the proceeds of such bonds shall be paid from the rental motor vehicle customer facility charge special fund as determined by the department; provided that the rental motor vehicle customer facility charge in section 261‑7(h), Hawaii Revised Statutes, shall not be amended to supplement any additional or unforeseen costs related to the issuance or debt service of the rental motor vehicle customer facility revenue bonds that are authorized, appropriated, and issued under this section.

The governor, in the governor's discretion, is authorized to use the rental motor vehicle customer facility charge special fund to finance those projects authorized in part II and listed in part IV of this Act where the method of financing is designated to be by rental motor vehicle customer facility revenue bond funds.

SECTION 22. HARBOR REVENUE BONDS. The department of transportation is authorized to issue harbor revenue bonds for harbor capital improvement program projects authorized in part II and listed in part IV of this Act and designated to be financed by revenue bond funds or by general obligation bond funds with debt service cost to be paid from special funds, in such principal amount as shall be required to yield the amounts appropriated for such capital improvement program projects, and, if so determined by the department and approved by the governor, such additional amounts as may be deemed necessary by the department to pay interest on such revenue bonds during the estimated construction period of the capital improvement project for which such harbor revenue bonds are issued to establish, maintain, or increase reserves for the harbor revenue bonds or harbor revenue bonds heretofore authorized (whether authorized and issued or authorized and still unissued), and to pay the expenses of issuance of such bonds. The aforementioned harbor revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time. The principal of and interest on harbor revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable solely from and secured solely by the revenues derived from harbors and related facilities under the ownership of the State or operated and managed by the department, including rents, mooring, wharfage, dockage, pilotage fees, and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of harbor and related facilities and the furnishing and supplying of the services thereof. The expenses of the issuance of such harbor revenue bonds shall, to the extent not paid from the proceeds of such bonds, be paid from the harbor special fund.

The governor, in the governor's discretion, is authorized to use the harbor revenue fund to finance those projects authorized in part II and listed in part IV of this Act where the method of financing is designated to be by harbor revenue bond funds.

SECTION 23. HIGHWAY REVENUE BONDS. The department of transportation is authorized to issue highway revenue bonds for highway capital improvement program projects authorized in part II and listed in part IV of this Act and designated to be financed by revenue bond funds or by general obligation bond funds with the debt service cost to be paid from special funds, in such principal amount as shall be required to yield the amounts appropriated for such capital improvement projects, and, if so determined by the department and approved by the governor, such additional principal amount as may be deemed necessary by the department to pay interest on such highway revenue bonds during the estimated period of construction of the capital improvement project for which such highway revenue bonds are issued, to establish, maintain, or increase reserves for such highway revenue bonds or highway revenue bonds heretofore authorized (whether authorized and issued or authorized and still unissued), and to pay all or any part of the expenses related to the issuance of such highway revenue bonds. The aforementioned highway revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time. The principal of and interest on such highway revenue bonds, to the extent not paid from the proceeds of such highway revenue bonds, shall be payable from and secured by the revenues derived from highways and related facilities under the ownership of the State or operated and managed by the department, from the highway fuel taxes, vehicle weight taxes, and vehicle registration fees, levied and paid pursuant to sections 243‑4, 248‑8, 249‑31, and 249‑33, Hawaii Revised Statutes, and federal moneys received by the State or any department thereof which are available to pay principal of and/or interest on indebtedness of the State, or such part of any thereof as the department may determine, and other user taxes, fees or charges currently or hereafter derived from or arising through the ownership, operation, and management of highways and related facilities and the furnishing and supplying of the services thereof. The expenses related to the issuance of such highway revenue bonds, to the extent not paid from the proceeds of such bonds, shall be paid from the state highway fund.

The governor, in the governor's discretion, is authorized to use the state highway fund to finance those projects authorized in part II and listed in part IV of this Act where the method of financing is designated to be by highway revenue bond funds.

PART VII. SPECIAL PROVISIONS

SECTION 24. GOVERNOR'S DISCRETIONARY POWERS. Any law or provision to the contrary notwithstanding, the governor may replace general obligation bond funds appropriated for capital improvement projects with general obligation reimbursable bond funds, when the expenditure of such general obligation reimbursable bond funds is deemed appropriate for the project.

SECTION 25. All general obligation bond funds used for a public undertaking, improvement, or system designated by the letter (D) shall have the bond principal and interest reimbursed from the special fund in which the net revenue, or net user tax receipts, or combination of both, of such public undertaking, improvement or system, are deposited or credited. Bonds issued for irrigation and housing projects shall be reimbursed as provided by section 174‑21 and chapter 201H, Hawaii Revised Statutes, respectively.

The governor is authorized to use, at the governor's discretion, the state highway fund, the harbor special fund, the boating special fund, the airport revenue fund, the special land and development fund, or other appropriate special funds to finance the respective public undertaking, improvement, or system described above and authorized in this Act, where the method of financing is designated to be general obligation bond fund with debt service cost to be paid from the funds.

SECTION 26. In the event that the authorized appropriations specified for a capital improvement project listed in this Act are insufficient and where the source of funding is designated as special funds, general obligation bond fund with debt service cost to be paid from special funds, revenue bond funds, or revolving funds, the governor may make supplemental allotments from the special fund or revolving fund responsible for cash or debt service payments for the projects, or transfer unrequired balances from other unlapsed projects in this Act or prior appropriation acts which authorized the use of special funds, general obligation bond fund with debt service costs to be paid from special funds, revenue bond funds, or revolving funds; provided that such supplemental allotments shall not be used to increase the scope of the project; and provided further that such supplemental allotments shall not impair the ability of the fund to meet the purposes for which it was established.

SECTION 27. In the event that the authorized appropriations specified for a capital improvement project listed in this Act are insufficient and where the source of funding is designated as airport passenger facility charge funds, the governor may make supplemental allotments from the airport revenue fund or airport revenue bond funds, or transfer unrequired balances from other unlapsed projects in this Act or prior appropriation acts that authorized the use of airport passenger facility charge funds; provided further that such supplemental allotments shall not be used to increase the scope of the project; provided further that such supplemental allotments shall not impair the ability of the fund to meet the purposes for which it was established; and provided further that the governor, at the governor's discretion, is authorized to increase the passenger facility charge fund authorization ceiling for the program to accommodate the expenditure of such funds.

SECTION 28. The governor may supplement funds for any cost element for a capital improvement project authorized under this Act by transferring such sums as may be needed from the funds appropriated for other cost elements of the same project by this Act or any other prior or future act which has not lapsed; provided that the total expenditure of funds for all cost elements shall not exceed the total appropriations for that project.

SECTION 29. After the objectives and purposes of appropriations made in this Act from the general obligation bond fund for capital improvement projects have been met, unrequired balances, except those from university of Hawaii projects, shall be transferred to the project adjustment fund appropriated in part II and described in part IV of this Act, and shall be considered a supplementary appropriation thereto; provided that all other unrequired allotment balances, unrequired appropriation balances, and unrequired encumbrance balances shall lapse as of June 30, 2018, as provided in section 33 of this Act.

SECTION 30. In the event that authorized appropriations specified for capital improvement projects listed in this Act or in any other act currently authorized by the legislature are insufficient, and where the source of funding for the project is designated as the general obligation bond fund, the governor may make supplemental allotments from the project adjustment fund appropriated in part II and described in part IV of this Act to supplement any currently authorized capital investment cost elements; provided further that such supplemental allotments from the project adjustment fund shall not be used to increase the scope of the project.

SECTION 31. After the objectives and purposes of appropriations made in this Act from the general obligation bond fund for capital improvement projects for the university of Hawaii have been met, unrequired balances shall be transferred to the university of Hawaii project adjustment fund appropriated in part II and described in part IV of this Act, and shall be considered a supplementary appropriation thereto.

SECTION 32. In the event that authorized appropriations specified for university of Hawaii capital improvement projects listed in this Act or in any other act currently authorized by the legislature are insufficient, and where the source of funding for the project is designated as the general obligation bond fund, the governor may make supplemental allotments from the university of Hawaii project adjustment fund appropriated in part II and described in part IV of this Act to supplement any currently authorized capital investment cost elements; provided further that such supplemental allotments from the project adjustment fund shall not be used to increase the scope of the project.

SECTION 33. Any provision of this Act to the contrary notwithstanding, the appropriations made for capital improvement projects authorized under this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all appropriations made to be expended in fiscal biennium 2015‑2017 which are unencumbered as of June 30, 2018 shall lapse as of that date; provided further that this lapsing date shall not apply to non‑general fund appropriations for projects described in section 16 of this Act where such appropriations have been deemed necessary to qualify for federal aid financing and reimbursement and are unencumbered as of June 30, 2022 shall lapse as of that date.

SECTION 34. Where it has been determined that changed conditions, such as a reduction in the particular population being served, permit the reduction in the scope of a capital improvement project described in this Act, the governor may authorize such reduction of project scope.

SECTION 35. In releasing funds for capital improvement projects, the governor shall consider legislative intent and the objectives of the user agency and its programs; the scope and level of the user agency's intended service; and the means, efficiency, and economics by which the project will meet the objectives of the user agency and the State; provided further that agencies responsible for construction shall take into consideration legislative intent, the objectives of the user agency and its programs, and the scope and level of the user agency's intended service and construct the improvement to meet the objectives of the user agency in the most efficient and economical manner possible.

SECTION 36. With the approval of the governor, designated expending agencies for capital improvement projects authorized in this Act may delegate to other state or county agencies the implementation of projects when it is determined advantageous to do so by both the original expending agency and the agency to which expending authority is to be delegated.

SECTION 37. Where county capital improvement projects are partially or totally funded by state grants as authorized in this Act or any other act of the legislature, this fact should be appropriately acknowledged during construction and upon completion of these projects.

SECTION 38. The governor may authorize the expenditure of funds for capital improvement projects not previously authorized in this Act to cope with the effects of natural disasters or unforeseen emergencies, when the effects of the natural disasters or unforeseen emergencies create an urgent need to pursue a course of action that is in the best interest of the State; provided further that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor; and provided further that the governor shall use the project adjustment fund authorized in part II and described in part IV to accomplish the purposes of this section.

SECTION 39. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances as may be available from the appropriated funds of any program in this Act to supplement the appropriation for any other program in this Act to cope with the effects of natural disasters or other unforeseen emergencies; provided that the effects of such natural disasters or emergencies create an urgent need to pursue a course of action which is in the best interest of the State; provided further that the use of such funds does not conflict with general law; and provided further that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor.

SECTION 40. No appropriation authorized in this Act for expenditure by a political subdivision of this State shall be considered to be a mandate to undertake new programs or to increase the level of services under existing programs of that political subdivision. If any appropriation authorized in this Act constitutes such a mandate within the provisions of section 5 of article VIII of the Hawaii State Constitution, such authorization shall be void and, in the case of capital improvement appropriations designated to be financed from the general obligation bond fund, the total general obligation bonds authorized for such projects shall be correspondingly decreased.

SECTION 41. Whenever the expending agency to which an appropriation is made is changed due to legislation enacted during any session of the legislature which affects the appropriations made by this Act, the governor shall transfer the necessary funds and positions to the proper expending agency as provided by law.

SECTION 42. In the event the State should assume the direct operation of any non‑governmental agency receiving state funds under the provisions of this Act, all such funds shall constitute a credit to the State against the costs of acquiring all or any portion of the property, real, personal, or mixed, of such non‑governmental agency. This credit shall be applicable regardless of when such acquisition takes place.

SECTION 43. The governor may authorize the expenditure of special funds or revolving funds, in excess of levels authorized by the legislature in part II of this Act, as necessary to allow the continuation of program operations and carry out the purpose of the special or revolving fund; provided further that the governor may allow for an increase in the appropriate special or revolving fund authorization ceiling for the program to accommodate the expenditure of such funds; and provided further that such expenditures shall not exceed the amounts available in such funds.

SECTION 44. Any provision of this Act to the contrary notwithstanding, the federal fund or other federal fund appropriations made for operating costs authorized under this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all federal fund or other federal fund appropriations made to be expended in fiscal year 2015‑2016 which are unencumbered as of June 30, 2018 shall lapse as of that date and fiscal year 2016‑2017 which are unencumbered as of June 30, 2019 shall lapse as of that date.

SECTION 45. In the event that unanticipated federal funding cutbacks diminish or curtail essential, federally‑funded state programs, the governor may utilize savings as determined to be available from other state programs for the purpose of maintaining such programs until the next legislative session.

SECTION 46. The governor may approve the expenditure of all federal funds which are in excess of levels authorized by the legislature; provided further that the governor may allow for an increase in the appropriate federal fund authorization ceiling for the program to accommodate the expenditure of such funds.

SECTION 47. Any provision of this Act to the contrary notwithstanding, the governor may approve the extension of the lapse dates for federal fund or other federal fund appropriations and appropriations of other means of financing, except general funds, deemed necessary to qualify for federal aid financing and/or reimbursement, provided in this Act or authorized by the governor pursuant to section 46 of this Act as necessary to meet the intent of the federal grant awards.

SECTION 48. Where an agency is authorized to secure funds or other property from private organizations or individuals to be expended or utilized in connection with any authorized program, the agency, with the governor's approval, may enter into such undertaking, provided that the provisions of the undertaking comply with applicable state constitutional and statutory requirements.

SECTION 49. Except as otherwise provided by general law, negotiations for the purchase of land by state agencies shall be subject to the approval of the governor and the department of land and natural resources, or other appropriate agency; provided further that private lands may be acquired for the purpose of exchange for federal lands when the department of land and natural resources and the governor determine that such acquisition and exchange are necessary for the completion of any project specifically authorized by this Act.

SECTION 50. Except as otherwise provided, or except as prohibited by specific grant conditions, all federal or non‑general fund reimbursements received by state programs shall be returned to the general fund or fund of originating expenses.

SECTION 51. Unless otherwise provided in this Act, the governor is authorized to transfer operating funds between appropriations within the same fund, within an expending agency, for operating purposes.

SECTION 52. Except as otherwise provided in this Act, each department or agency is authorized to transfer positions within its respective authorized position ceiling for the purpose of maximizing the utilization of personnel resources and staff productivity; provided further that all such actions shall be with the prior approval of the governor and shall be consistent with appropriations provided in this Act and with provisions of part II of chapter 37 of the Hawaii Revised Statutes.

SECTION 53. Any law or provision to the contrary notwithstanding, in expending funds for social welfare programs, education programs, and other programs and agencies having appropriations which are based on population and workload data as specified in the executive budget document, only so much as is necessary to provide the level of services intended by the legislature shall be expended. Affected agencies shall reduce expenditures below appropriations under procedures prescribed by the department of budget and finance in the event actual population and workload trends are less than the figures projected.

SECTION 54. With the approval of the governor, agencies that use appropriations authorized in part II of this Act for audit services may delegate that responsibility and transfer funds to the internal post audit program (AGS 104), when it is determined by such agencies that it is advantageous to do so.

SECTION 55. With the approval of the governor, expending agencies that use appropriations authorized in part II of this Act for planning, land acquisition, design, construction, and equipment for repair and alterations may delegate responsibility and transfer funds to the construction program (AGS 221) for the implementation of the repair and alterations, when it is determined by the agencies that it is advantageous to do so.

SECTION 56. Agencies with appropriations authorized in part II of this Act for risk management costs shall transfer funds authorized for that purpose to risk management (AGS 203) for the administration and implementation of state risk management costs and expenses, except as otherwise provided by law.

SECTION 57. With the approval of the governor, the Hawaii health systems corporation in the department of health may transfer to the department of human services funds appropriated to the Hawaii health systems corporation for the care and treatment of patients, whenever the department of human services can utilize such funds to match federal funds which may be available to help finance the cost of outpatient, acute hospital, or long‑term care of indigents or medical indigents in designated critical access hospitals.

SECTION 58. With the approval of the governor, the department of health may transfer to the department of human services funds appropriated to the department of health for the care and treatment of patients, whenever the department of human services can utilize such funds to match federal funds to finance the cost of outpatient, hospital, or skilled nursing home care of indigents or medical indigents.

SECTION 59. The department of human services is authorized to enter into agreements with the department of health to furnish outpatient, hospital, and skilled nursing home care of indigents or medical indigents and to pay the department of health for such care; provided that with the approval of the director of finance, the department of health may deposit part of such receipts into the appropriations from which transfers were made as provided elsewhere in this Act.

SECTION 60. Provided that of the appropriation for each principal state department as defined by section 26‑4, Hawaii Revised Statutes, the sum of $2,500 for fiscal year 2015‑2016 and the sum of $2,500 in fiscal year 2016‑2017 shall be made available in each department to be established as a separate account for a protocol fund to be expended at the discretion of the executive head of the department or agency (i.e., director, chairperson, comptroller, adjutant general, superintendent, president, or attorney general).

SECTION 61. Provided that of the general fund appropriation for Hawaii state public library system (EDN 407), the sum of $2,500 for fiscal year 2015‑2016 and the sum of $2,500 for fiscal year 2016‑2017 may be used to establish a separate protocol account to be expended at the discretion of the state librarian.

SECTION 62. Provided that of the general fund appropriation for financial administration (BUF 115), the sum of $4,000 for fiscal year 2015‑2016 and the sum of $4,000 for fiscal year 2016‑2017 may be used to establish a separate protocol account to be expended at the discretion of the director of finance for the promotion and improvement of state bond ratings and sales.

SECTION 63. Provided that of the special fund appropriation for spectator events and shows ‑ Aloha Stadium (AGS 889), the sum of $2,500 for fiscal year 2015‑2016 and the sum of $2,500 for fiscal year 2016‑2017 may be expended at the discretion of the stadium manager for promotion and other stadium‑related purposes.

SECTION 64. Except as otherwise provided, the appropriation for the office of the governor (GOV 100) shall be expended at the discretion of the governor.

SECTION 65. Except as otherwise provided, the appropriation for the office of the lieutenant governor (LTG 100) shall be expended at the discretion of the lieutenant governor.

SECTION 66. Provided that of the appropriations authorized for executive programs in part II of this Act for fiscal year 2015‑2016 and fiscal year 2016‑2017, settlements and judgments approved by the legislature in ATG‑1(15), the Claims Bill, shall be funded within each program's departmental allocation for the respective fiscal year.

SECTION 67. Provided that in the event that the amount of settlements and judgments approved by the legislature in ATG‑1(15), the Claims Bill, exceeds program allocations for fiscal year 2015‑2016 or fiscal year 2016‑2017, as applicable, for the purposes of meeting such obligations:

(1) A department, with the approval of the governor, is authorized to utilize allocated savings determined to be available from any other program within the department; and

(2) Unless otherwise provided by general law, the governor is authorized to transfer funds between allocations of appropriations within a department for the purposes of paying settlements and judgments of a program.

SECTION 68. The director of finance is authorized to expend general fund, special fund, and revolving fund savings or balances determined to be available from authorized general fund, special fund, and revolving fund program appropriations, up to an aggregate total of $20,000,000 for fiscal year 2015‑2016 and $20,000,000 for fiscal year 2016‑2017, for municipal lease payments under financing agreements entered into pursuant to chapter 37D, Hawaii Revised Statutes, to finance the acquisition of depreciable assets, including, but not limited to, automobiles, computers, printers, and telecommunications equipment; and provided further that designated expending agencies (including the department of education and the university of Hawaii) for municipal lease payments and for depreciable assets, including, but not limited to, automobiles, computers, printers, and telecommunications equipment authorized in this Act may delegate to the director of finance the implementation of such acquisitions when it is determined by all involved agencies that it is advantageous to do so.

SECTION 69. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances as may be available of general funds from any program in this Act to supplement the department of land and natural resources' fire‑fighter's contingency fund; provided further that these funds shall be used to prevent, control, and extinguish wildland fires within forest reserves, public hunting areas, wildlife and plant sanctuaries, and natural area reserves, and to fulfill mutual aid agreements in cooperation with fire control agencies of the counties and federal government.

SECTION 70. Provided that the director of finance shall ensure that non‑facility per‑pupil general fund amounts allocated for department of education and charter school students are equal on an annualized fiscal year basis; provided further that, for the purposes of this section, all general fund appropriations, except grants issued pursuant to chapter 42F, for school‑based budgeting (EDN 100), instructional support (EDN 200), state administration (EDN 300), school support (EDN 400), and early learning (EDN 700), shall be considered non‑facility appropriations for the department of education; and provided further that, notwithstanding any other law to the contrary, for fiscal year 2015‑2016 and fiscal year 2016‑2017, the director of finance shall:

(1) Determine the sum of general fund appropriations made for the department of education and charter school student non‑facility costs;

(2) Determine the sum of department of education and charter school student enrollment based upon verified actual student enrollment counts;

(3) Determine a per‑pupil amount by dividing the sum of general fund appropriations determined under paragraph (1) by the sum of student enrollment determined under paragraph (2);

(4) Transfer a general fund amount between the department of education and charter schools prior to November 1, 2015, and November 1, 2016, respectively, that will provide each with a per‑pupil allocation equal to the amount determined on an annualized fiscal year basis under paragraph (3); and

(5) Account for all calculations and transfers made pursuant to this section in a report to the legislature, governor, department of education, and charter schools within ten days of any transfer made pursuant to this section.

SECTION 71. Provided that no funds, including federal funds, shall be expended to fill any position not authorized by the legislature; provided further that this prohibition shall not apply to:

(1) The university of Hawaii and the Hawaii health systems corporation;

(2) Positions entirely federally funded;

(3) Positions established pursuant to section 76‑16(b) subsections (3), (12), (13), (21), and (23), Hawaii Revised Statutes;

(4) Positions for special projects approved by the governor; or

(5) Where an agency has explicit statutory authorization to establish positions to accomplish necessary functions;

provided further that with regard to any of the positions identified in paragraphs (1), (2), (3), (4), or (5) the respective agency or department shall submit a report to the legislature within five days of each use of this provision; provided further that the report shall include:

(1) Authority used to establish the position;

(2) Date the position was established;

(3) Projected date the position will be filled;

(4) Amounts projected to be expended in fiscal year 2015‑2016 and in fiscal year 2016‑2017;

(5) Source of funds used to pay for the position; and

(6) Functions to be performed by the position.

PART VIII. MISCELLANEOUS AND EFFECTIVE DATE

SECTION 72. If any portion of this Act or its application to any person, entity, or circumstance is held to be invalid for any reason, then the legislature declares that the remainder of the Act and each and every other provision thereof shall not be affected thereby. If any portion of a specific appropriation is held to be invalid for any reason, the remaining portion shall be expended to fulfill the objective of such appropriation to the extent possible.

SECTION 73. In the event manifest clerical, typographical or other mechanical errors are found in this Act, the governor is hereby authorized to correct such errors.

SECTION 74. Material to be repealed is bracketed and stricken. New material in prior enacted laws is underscored.

SECTION 75. This Act shall take effect on July 1, 2015.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

State Budget

 

Description:

Appropriates funds for the operating and capital improvement budget of the Executive Branch for fiscal years 2015-2016 and 2016-2017.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.