HOUSE OF REPRESENTATIVES

H.B. NO.

2466

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to non-general funds.

 

 

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

 


PART I

SECTION 1. The purpose of this Act is to repeal, abolish, or amend various non-general funds pursuant to the recommendations made by the auditor in auditor's report no. 15‑17.

PART II

SECTION 2. The purpose of this part is to repeal the community health centers special fund.

The legislature finds that the fund does not meet the criteria for a special fund.

SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

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

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

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

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

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

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

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

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

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

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

(12) Universal service fund established under section 269‑42;

(13) Emergency and budget reserve fund under section 328L‑3;

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

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]] Neurotrauma special fund under section 321H-4;

[[](17)[]] Glass advance disposal fee established by section 342G-82;

[[](18)[]] Center for nursing special fund under section 304A-2163;

[[](19)[]] Passenger facility charge special fund established by section 261-5.5;

[[](20)[]] Solicitation of funds for charitable purposes special fund established by section 467B-15;

[[](21)[]] Land conservation fund established by section 173A-5;

[[](22)[]] Court interpreting services revolving fund under section 607-1.5;

[[](23)[]] Trauma system special fund under section 321-22.5;

[[](24)[]] Hawaii cancer research special fund;

[[(25)] Community health centers special fund;

[(26)]] (25) Emergency medical services special fund;

[[(27)]] (26) Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[(28)]] (27) Shared services technology special fund under section 27-43;

[[(29)]] (28) Automated victim information and notification system special fund established under section 353-136;

[[(30)]] (29) Deposit beverage container deposit special fund under section 342G-104;

[[(31)]] (30) Hospital sustainability program special fund under Act 217, Session Laws of Hawaii 2012, as amended;

[[(32)]] (31) Nursing facility sustainability program special fund under Act 156, Session Laws of Hawaii 2012;

[[(33)]] (32) Hawaii 3R's school improvement fund under section 302A-1502.4;

[[(34)]] (33) After-school plus program revolving fund under section 302A-1149.5; and

[[(35)]] (34) Civil monetary penalty special fund under section 321-30.2,

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

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

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

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

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

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

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

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

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

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

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

(12) Universal service fund established under section 269‑42;

(13) Emergency and budget reserve fund under section 328L‑3;

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

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]] Neurotrauma special fund under section 321H-4;

[[](17)[]] Center for nursing special fund under section 304A‑2163;

[[](18)[]] Passenger facility charge special fund established by section 261-5.5;

[[](19)[]] Court interpreting services revolving fund under section 607-1.5;

[[](20)[]] Trauma system special fund under section 321-22.5;

[[](21)[]] Hawaii cancer research special fund;

[[(22)] Community health centers special fund;

[(23)]] (22) Emergency medical services special fund;

[[(24)]] (23) Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[(25)]] (24) Shared services technology special fund under section 27-43;

[[(26)]] (25) Nursing facility sustainability program special fund established pursuant to Act 156, Session Laws of Hawaii 2012;

[[(27)]] (26) Automated victim information and notification system special fund established under section 353-136;

[[(28)]] (27) Hospital sustainability program special fund under Act 217, Session Laws of Hawaii 2012, as amended; and

[[(29)]] (28) Civil monetary penalty special fund under section 321-30.2,

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

SECTION 5. Section 245-15, Hawaii Revised Statutes, is amended to read as follows:

"245-15 Disposition of revenues. All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that, of the moneys collected under the tax imposed pursuant to:

(1) Section 245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(2) Section 245-3(a)(6), after September 30, 2007, and prior to October 1, 2008:

(A) 1.5 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.25 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5; and

(C) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(3) Section 245-3(a)(7), after September 30, 2008, and prior to July 1, 2009:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(4) Section 245-3(a)(8), after June 30, 2009, and prior to July 1, 2013:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.75 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.75 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 0.5 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(5) Section 245-3(a)(11), after June 30, 2013, and prior to July 1, 2015:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 1.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 1.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234; and

(6) Section 245-3(a)(11), after June 30, 2015, and thereafter:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 1.125 cents per cigarette, but not more than $7,400,000 in a fiscal year, shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the [community health centers special fund established pursuant to section 321-1.65;] primary health care incentive program established pursuant to section 321-1.5; and

(D) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234.

The department shall provide an annual accounting of these dispositions to the legislature."

SECTION 6. Section 321-1.65, Hawaii Revised Statutes, is repealed.

["[321‑1.65] Community health centers special fund. (a) There is established within the state treasury a special fund to be known as the community health centers special fund to be administered and expended by the department of health.

(b) The moneys in the special fund shall be used by the department of health for the operations of federally qualified health centers.

(c) Moneys collected pursuant to section 245-15 shall be deposited into the special fund."]

SECTION 7. On July 1, 2016, all unencumbered balances remaining in the community health centers special fund repealed by section 6 of this Act shall lapse to the credit of the general fund.

PART III

SECTION 8. The purpose of this part is to amend the revenue sources of the domestic violence and sexual assault special fund.

The legislature finds that the account does not meet the clear nexus criterion. Specifically, there is no clear link between the benefits of domestic violence and sexual assault intervention or prevention sought by the fund and revenues derived from a portion of fees for copies of birth, marriage, divorce, and death certificates pursuant to section 338-14.5, Hawaii Revised Statutes.

SECTION 9. Section 321-1.3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) [Fees remitted pursuant to section 338-14.5, income] Income tax remittances allocated under section 235-102.5, 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."

SECTION 10. Section 338-14, Hawaii Revised Statutes, is amended to by amending subsection (c) to read as follows:

"(c) The department shall keep an account of all fees collected and shall deposit them to the general fund of the State except as provided in sections [321-1.3,] 338-14.5, 338-14.6, 346-7.5, and 601-3.6."

SECTION 11. Section 338-14.5, Hawaii Revised Statutes, is amended to read as follows:

"338-14.5 Copies of certificate; fees. The fees for certified copies of birth, marriage, divorce, or death certificates issued by the department of health shall consist of $10 for the first copy issued and $4 for each copy issued thereafter. These fees shall be collected for each single request for certified copies. All fees received for the issuance of certified copies of birth, marriage, divorce, or death certificates shall be remitted to the director of health. Upon the receipt of remittances under this section, the director of health shall deposit:

(1) $1 for each certified copy to the credit of the spouse and child abuse special account established under section 346-7.5;

(2) $1 for each certified copy to the credit of the spouse and child abuse special account established under section 601-3.6;

[(3) $1 for each certified copy to the credit of the domestic violence and sexual assault special fund established under section 321-1.3;

(4)] (3) $1 for each certified copy to the credit of the vital statistics improvement special fund established under section 338-14.6; and

[(5)] (4) The remainder of the fee for each certified copy to the credit of the state general fund."

PART IV

SECTION 12. The purpose of this part is to repeal the early intervention trust fund.

The legislature finds that the fund does not serve the purpose for which it was created and does not meet the criteria for a trust fund.

SECTION 13. Section 321-356, Hawaii Revised Statutes, is repealed.

["321-356 Early intervention trust fund. (a) There is established in the state treasury a trust fund to be known as the early intervention trust fund to be administered by the department in accordance with this section.

(b) The trust fund shall consist of government grants and private contributions including but not limited to gifts or donations from corporations or other businesses, foundations, individuals, and other interested parties, and income earned by the trust fund. All program income consisting of federal reimbursement funds received by the State for early intervention funded by private donations and contributions under this part shall be deposited into the trust fund."]

SECTION 14. Section 321-357, Hawaii Revised Statutes, is amended as follows:

1. By amending its title and subsection (a) to read:

"[[]321-357[]] Early intervention [funds;] special fund; purpose and use. (a) The purpose of the early intervention special fund [and early intervention trust fund] is to expand and enhance early intervention services for infants and toddlers with special needs by providing a cooperative funding mechanism between the public and private sectors to work together to make and secure appropriations and donations to the funds."

2. By amending subsection (d) to read:

"(d) The Hawaii early intervention coordinating council shall make recommendations to the department for the expenditure of moneys from the [funds.] early intervention special fund."

SECTION 15.  On July 1, 2016, all unencumbered balances remaining in the early intervention trust fund repealed by section 13 of this Act shall lapse to the credit of the general fund.

PART V

SECTION 16. The purpose of this part is repeal the Hawaii birth defects special fund.

The legislature finds that the account does not meet the criteria for a special fund.

SECTION 17. Section 572-5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The department of health shall appoint, and at its pleasure remove, one or more suitable persons as agents authorized to grant marriage licenses under this chapter in each judicial circuit. The agents may issue licenses from any state facility when deemed necessary by the director. Any agent appointed under this subsection and receiving an application for a marriage license shall collect from the applicant for the license $60, of which the agent, except those provided for in subsection (b), shall retain $9 for the agent's benefit and compensation and shall remit $51 to the director of health. Upon the receipt of remittances under this subsection, the director of health shall deposit:

(1) [$32] $42 for each license issued to the credit of the general fund of the State;

(2) $4.50 for each license issued to the credit of the spouse and child abuse special account established under section 346-7.5; and

(3) $4.50 for each license issued to the credit of the spouse and child abuse special account established under section 601-3.6[; and

(4) $10 for each license issued to the credit of the birth defects special fund established under section 321-426].

(b) The department may appoint, as regular employees under the civil service and classification laws, the number of suitable persons as agents authorized to grant marriage licenses for whom provision has been made in the general appropriation act. In the case of these agents, the full amount collected from applicants shall be remitted to the director of health. Upon the receipt of remittances under this subsection, the director of health shall deposit:

(1) [$41] $51 for each license issued to the credit of the general fund of the State;

(2) $4.50 for each license issued to the credit of the spouse and child abuse special account established under section 346-7.5; and

(3) $4.50 for each license issued to the credit of the spouse and child abuse special account established under section 601-3.6[; and

(4) $10 for each license issued to the credit of the birth defects special fund established under section 321-426]."

SECTION 18. Section 321-426, Hawaii Revised Statutes, is repealed.

["[321-426] Birth defects special fund. There is established within the state treasury the 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 19.  On July 1, 2016, all unencumbered balances remaining in the birth defects special fund repealed by section 18 of this Act shall lapse to the credit of the general fund.

PART VI

SECTION 20. The following funds and accounts are abolished:

(1) The early childhood obesity special fund administratively established in fiscal year 2011-2012 and administered by the department of health;

(2) The grant for Catholic Charities-Lanakila Senior Center special fund administratively established and without any financial activity since 2007;

(3) The grant for emergency room subsidy at Waianae Coast Clinic special fund administratively established and without any financial activity since 2007;

(4) The grant for Hawaii primary care association dental special fund administratively established and without any financial activity since 2007;

 

(5) The hospital-based poison center special fund administratively established and without any financial activity since 2006;

(6) The interagency federal revenue maximization revolving fund special fund established pursuant to section 29-24, Hawaii Revised Statutes, which was repealed by Act 124, Session Laws of Hawaii 2011;

(7) The program for all inclusive care for elderly special fund administratively established and without any financial activity since 2006;

(8) The public health nursing services special fund established pursuant to section 321-432, Hawaii Revised Statutes, which fund was repealed by Act 147, Session Laws of Hawaii 2015;

(9) The resources to nonprofit, community-based health care special fund administratively established and without any financial activity since 2006;

(10) The respite services special fund administratively established in 2009; and

(11) The subsidy for St. Francis Medical Center-Bone Marrow special fund administratively established and without any financial activity since 2007,

and any remaining unencumbered balances shall be transferred to the general fund.

PART VII

SECTION 21. The following funds and accounts are abolished:

(1) The funding for grant pursuant to chapter 42F, Hawaii Revised Statutes, special fund administratively established in 2010 for moneys appropriated from the emergency and budget reserve special fund through Act 191, Session Laws of Hawaii 2010, and Act 25, Session Laws of Hawaii 2011, which extended the lapse date to the end of fiscal year 2011-2012;

(2) The healthy aging partnerships program special fund administratively established in 2010 for moneys from the emergency and budget reserve fund authorized through Act 191, Session Laws of Hawaii 2010, for fiscal year 2010-2011 and Act 25, Session Laws of Hawaii 2011, which extended the lapse date from June 30, 2011, to June 30,2012; and

(3) The partnership in community living program special fund administratively established in 2010 for moneys appropriated from the emergency and budget reserve special fund through Act 191, Session Laws of Hawaii 2010, and Act 25, Session Laws of Hawaii 2011, which extended the lapse date to the end of fiscal year 2011-2012,

and any remaining unencumbered balances shall be transferred to the emergency and budget reserve fund established pursuant to section 328L-3, Hawaii Revised Statutes.

PART VIII

SECTION 22. The Hilo Shippers' Wharf Committee Charitable trust fund established in 1954 is abolished and any remaining unencumbered balance shall be transferred pursuant to third circuit court vesting order no. 03-1-0010 to the county of Hawaii.

PART IX

SECTION 23. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 24. This Act shall take effect on July 1, 2016.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Non-General Funds; Repeal; Transfer of Balances

 

Description:

Repeals and transfers the unencumbered balances of various non-general funds and accounts and amends the revenue source of the domestic violence and sexual assault special fund as recommended by the auditor in auditor's report no. 15-17.

 

 

 

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