SB1299 HD1.DOC

SECTION 1. The legislature finds that budgetary planning and transparency are key components to ensuring the ongoing fiscal health of the State.

By establishing maximum amounts for distribution among the non-general funds, the legislature intends that this Act:

(1) Make forecasts of general fund revenues more reliable;

(2) Increase legislative oversight of the agencies and programs supported by the non-general funds; and

(3) Subject those agencies and programs to competition for limited public funds if the agencies or programs want more than the amount automatically distributed to their non-general funds.

The purpose of this Act is to address budgetary planning and transparency in the disposition of conveyance tax revenues by:

(1) Setting maximum amounts to be distributed to various non-general funds from the conveyance tax; and

(2) Appropriating general funds to provide continued support of programs either similar to or previously supported by distributions to the natural area reserve fund and its associated programs from conveyance tax revenues.

SECTION 2. Section 195F-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established a special fund within the state treasury known as the forest stewardship fund which shall be used as follows:

(1) Payments shall be made by the board pursuant to agreements entered into with qualified landowners to further the purposes of this chapter; and

(2) Moneys collected from:

(A) The harvest of non-native forest products from forest reserves;

(B) The harvest of native forest products from degraded forests as defined in section 186-5.5, within forest reserves;

(D) The sale of tree seedlings from state nurseries;

(E) The sale of any other products or services, or anything of value derived from forest reserves not described above; or

(F) The imposition of fines or penalties for violations of this chapter and chapters 183 and 185 or any rule adopted thereunder;

shall be used for: (i) replanting, managing, and maintaining designated timber management areas; (ii) enhancing the management of public forest reserves with an emphasis on restoring degraded koa forests; and (iii) developing environmental education and training programs pertaining to sustainable forestry; provided that the activities described in clauses (ii) and (iii) may not be funded unless the activities described in approved management plans pertaining to clause (i) are adequately funded[~~; and~~

~~(3)~~ ~~Moneys deposited into the fund as authorized by section 247-7 may also be used by the department to administer the program and manage the forest reserve system~~]."

SECTION 3. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and

(2) [~~Twenty-five per cent from July 1, 2009, until June 30, 2012~~; ~~thirty per cent from July 1, 2012, until June 30, 2014; and fifty~~] Fifty per cent [~~in each fiscal year thereafter~~] or $38,000,000, whichever is less, shall be paid into the rental housing trust fund established by section 201H-202[~~; and~~

~~(3)~~ Twenty per cent from July 1, 2009, until June 30, 2012, and twenty-five per cent in each fiscal year thereafter shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

~~(A)~~ ~~To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;~~

~~(B)~~ Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

~~(C)~~ ~~The youth conservation corps established under chapter 193~~]."

SECTION 4. All remaining moneys deposited into the forest stewardship fund, established pursuant to section 195F-4, Hawaii Revised Statutes, in accordance with section 247-7, Hawaii Revised Statutes, as of the effective date of this Act, may continue to be used for the administration of forest stewardship programs and the management of the forest reserve system.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $7,556,128 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for natural area reserves and watershed management (LNR407) for:

(1) Natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

(2) Projects undertaken in accordance with watershed management plans pursuant to section 171-58, Hawaii Revised Statutes, or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3, Hawaii Revised Statutes; and

(3) The youth conservation corps established under chapter 193, Hawaii Revised Statutes.