REPORT TITLE:
Budget; Fiscal Accountability


DESCRIPTION:
Requires fiscal accountability by the Administration.  Requires a
signed jurat by state and county employers for all fiscally
related information provided to the legislature.  Provides
penalties for violation of the bill and intentionally providing
false information to the legislature.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1334        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO FISCAL ACCOUNTABILITY.
 


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

 1      SECTION 1.  Chapter 36, Hawaii Revised Statutes, is amended
 
 2 by adding two new sections to be appropriately designated and to
 
 3 read as follows:
 
 4      "§36-    Jurat; testimonies and documents provided to the
 
 5 legislature.  (a)  Any testimony or document provided to any
 
 6 committee of either house of the legislature or any joint
 
 7 committee thereof, that is prepared by any state or county
 
 8 officer or employee acting pursuant to an official duty that
 
 9 relates to the state budget or finances of the State shall
 
10 include the following jurat signed by the officer or employee:
 
11      "Under penalties of perjury and other penalties provided by
 
12 law, I declare that the written testimony or documents and any
 
13 accompanying oral testimony submitted for (legislator's name) on
 
14 this day the (day) of (month) (year), is to the best of my
 
15 knowledge and belief, true, correct, and complete."
 
16      (b)  Any testimony or document submitted under subsection
 
17 (a) shall also include an identical jurat signed by the director
 
18 or the director's designee of the department or agency employing
 
19 any officer or employee submitting the testimony or document.
 

 
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 1      §36-    Penalties.  (a)  In addition to any other penalty
 
 2 provided by law, any state or county officer or employee who:
 
 3      (1)  Violates any provision of this chapter or any rule
 
 4           adopted by the department pursuant to this chapter;
 
 5      (2)  Intentionally or knowingly provides false, inaccurate,
 
 6           incomplete or misleading information to any committee
 
 7           of the legislature as provided in section 36-  (a); or
 
 8      (3)  Fails to provide requested information to any committee
 
 9           of the legislature as provided in section 36-  (a);
 
10 shall be held personally liable and fined not more than $
 
11 nor less than $      for each violation.  Each date of violation
 
12 shall constitute a separate offense.  Any action taken to impose
 
13 or collect the penalty provided herein shall be considered a
 
14 civil action.
 
15      (b)  Both houses of the legislature shall jointly, by rule,
 
16 establish:
 
17      (1)  Responsibility for monitoring and determining whether
 
18           information is false, inaccurate, incomplete or
 
19           misleading;
 
20      (2)  Procedures to ensure the provision of due process to
 
21           persons charged under this section;
 
22      (3)  Responsibility for enforcement and collection of fines,
 
23           which may be assigned to the attorney general or any
 

 
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 1           other agency designated by the legislature; and
 
 2      (4)  Any other provision necessary to administer this
 
 3           section.
 
 4      (c)  All fines collected under this section shall be
 
 5 deposited into the general fund.  Any errors and omissions or
 
 6 other type of insurance policy paid for by the State or the
 
 7 counties shall not indemnify any person charged under this
 
 8 section."
 
 9      SECTION 2.  Section 36-6, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§36-6 Report to legislature.  (a)  Unless otherwise
 
12 provided by law, twenty days prior to the beginning of every
 
13 legislative session or at legislative budget hearings, if
 
14 scheduled during this period, the director of finance shall
 
15 provide the legislature with an executive summary consisting of
 
16 all reports to the legislature required under title 5.
 
17      (b)  The director of finance shall make an annual report to
 
18 the legislature of the transactions and business of the
 
19 director's department, showing the revenue and expenditure for
 
20 the preceding year, and giving a full and detailed estimate of
 
21 the revenue and expenditure for the succeeding year."
 
22      SECTION 3.  Section 37-37, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§37-37  [Reduction.] Allocation of funds.  (a)  Except as
 
 2 provided in subsection [(b), when] (c), the director of finance
 
 3 shall not allocate any funds appropriated by the legislature that
 
 4 is not equal to the sum appropriated unless the director
 
 5 determines [at any time] that the probable receipts from taxes or
 
 6 any other sources for any appropriation will be less than was
 
 7 anticipated, and that consequently the amount available for the
 
 8 remainder of the term of the appropriation or for any allotment
 
 9 period will be less than the amount estimated or allotted
 
10 therefor, the director [shall], with the approval of the governor
 
11 and after notice to the department or establishment concerned,
 
12 shall reduce the amount allotted or to be allotted; provided that
 
13 no reduction reduces any allotted amount below the amount
 
14 required to meet valid obligations or commitments previously
 
15 incurred against the allotted funds.
 
16      (b)  The director of finance shall not allocate any
 
17 appropriation for any purpose other than that for which it was
 
18 made unless authorized by law.
 
19      (c)  For the University of Hawaii, when the director of
 
20 finance determines at any time that the probable receipts from
 
21 taxes or any other sources for any appropriation will be less
 
22 than was anticipated, and that consequently the amount available
 
23 for the remainder of the term of the appropriation or for any
 

 
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 1 allotment period will be less than the amount estimated or
 
 2 allotted therefor, the director shall advise the governor of the
 
 3 situation, and the governor shall redetermine the allotment
 
 4 ceiling for the affected source or sources of funding pursuant to
 
 5 section 37-34, and shall advise the university and make a public
 
 6 declaration ten days prior to the effective date of the
 
 7 redetermination.  The university, not more than twenty days after
 
 8 the governor's notification, shall submit revised estimates
 
 9 consistent with the governor's redetermination to the director of
 
10 finance.  Otherwise, the director of finance shall modify, amend,
 
11 or reduce any allotment of the university to comply with the
 
12 governor's redetermination; provided that no reduction shall
 
13 reduce any allotted amount below the amount required to meet
 
14 valid obligations or commitments previously incurred against the
 
15 allotted funds.
 
16      [(c)] (d)  Prior to the implementation of any reduction in
 
17 allotment proposed by the director of finance or the governor
 
18 pursuant to subsection (a) or [(b),] (c), in which the sum of the
 
19 reductions exceed [2.5] ___ per cent of the total general fund
 
20 appropriation made by the legislature in any fiscal year, or any
 
21 reduction of allotted amounts for objects and items under section
 
22 37-39, the director of finance shall notify the president of the
 
23 senate, the speaker of the house of representatives, and the
 

 
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 1 chairpersons of the senate committee on ways and means and the
 
 2 house of representatives committee on finance, respectively, of
 
 3 the director's intent[.] before the reduction is made."
 
 4      SECTION 4.  Section 37-40, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§37-40  [Exceptions; trust] Trust funds.  [Except as to
 
 7 administrative expenditures, and except as otherwise provided by
 
 8 law, expenditures] Expenditures from trust funds [may] shall only
 
 9 be made by [any] a department or establishment [without] through
 
10 appropriation or allotment; provided that no expenditure shall be
 
11 made from and no obligation shall be incurred against any trust
 
12 fund in excess of the amount standing to the credit of the fund
 
13 or for any purpose for which the fund may not lawfully be
 
14 expended.  [Nothing in sections 37-31 to 37-41 shall require any
 
15 trust fund established pursuant to law be reappropriated
 
16 annually.]"
 
17      SECTION 5.  Section 37-41, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§37-41  Appropriations to revert to state treasury;
 
20 exceptions.  Unless otherwise provided by section 37-41.5 [or any
 
21 other law], every appropriation or part thereof of any kind made
 
22 subject to sections 37-31 to 37-40, remaining unexpended and
 
23 unencumbered at the close of any fiscal year shall lapse and be
 

 
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 1 returned to the general fund in the manner prescribed in section
 
 2 40-66."
 
 3      SECTION 6.  Section 37-42, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§37-42  Allotment as limit of expenditures; liability for
 
 6 excessive expenditure.  No department or establishment shall
 
 7 expend or be allowed to expend any sum, or incur or be allowed to
 
 8 incur any obligation in excess of an allotment.  No obligation
 
 9 incurred in excess of the balance of an allotment shall be
 
10 binding against the State[, but where the obligation is violative
 
11 only for having been made in excess of an allotment, the director
 
12 of finance may authorize payment thereof from unallotted funds].
 
13 Any officer, employee, or member of any department or
 
14 establishment, who makes or causes to be made any excessive
 
15 expenditure or incurs or causes to be incurred any excessive
 
16 obligation shall be deemed guilty of neglect of official duty and
 
17 shall be subject to removal from office and shall be liable to
 
18 the State for such sum as may have been expended or paid, and
 
19 [such] that sum, together with interest and costs, shall be
 
20 recoverable in an action instituted by the attorney general.
 
21      [Provided that any] Any state department, with the prior
 
22 consent of the governor and of the director, and subject to terms
 
23 and conditions insuring protection of the State as shall be
 

 
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 1 imposed by the department, may cosponsor with another state
 
 2 department or with the county or any agency thereof, for the
 
 3 purpose of applying for federal funds or assistance for any
 
 4 project, after certification by the state comptroller that proper
 
 5 and sufficient allotment has been made by the governor to the
 
 6 other department or after receipt of resolution adopted by the
 
 7 county council that proper and sufficient sums for the project
 
 8 have been appropriated and encumbered."
 
 9      SECTION 7.  Section 37-47, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "[[]§37-47[]]  Reporting of non-general fund information.
 
12 No later than twenty days prior to the convening of each regular
 
13 session, each department shall submit to the legislature a report
 
14 for each non-general fund account which shall include but not be
 
15 limited to, the following:
 
16      (1)  The name of the fund and a cite to the law authorizing
 
17           the fund;
 
18      (2)  The intended purpose of the fund;
 
19      (3)  The [current] program activities which the fund
 
20           supports;
 
21      (4)  The fund balance [of the fund] at the beginning and
 
22           ending of the [current] previous fiscal year;
 
23      (5)  The total amount of expenditures and other outlays from
 

 
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 1           the fund account for the previous fiscal year;
 
 2      (6)  The total amount of revenue and other receipts
 
 3           deposited to the account for the previous fiscal
 
 4           year[;] including a disclosure on the amount of
 
 5           interest earned;
 
 6      (7)  An estimate of the encumbrances, expenditures, and
 
 7           other outlays required for the current fiscal year and
 
 8           the revenues and other receipts expected to be
 
 9           generated by the fund for the same period;
 
10     [(7)] (8)  A detailed listing of all transfers from the fund;
 
11     [(8)] (9)  The amount of moneys encumbered in the account as
 
12           of [the beginning of the fiscal year;] the ending of
 
13           the previous fiscal year;
 
14     [(9)] (10)  The amount of funds in the account which are
 
15           required for the purposes of bond conveyance or other
 
16           related bond obligations;
 
17    [(10)] (11)  The amount of moneys in the account derived from
 
18           bond proceeds; and
 
19    [(11)] (12)  The amount of moneys of the fund held in
 
20           certificates of deposit, escrow accounts or other
 
21           investments[.];
 
22     (13)  Any other information requested by the legislature."
 
23      SECTION 8.  Section 37-53, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§37-53  Transfer of special funds.  At any time during a
 
 3 fiscal year, notwithstanding any other law to the contrary, any
 
 4 department [may], with the approval of the governor or the
 
 5 director of finance if so delegated by the governor, may transfer
 
 6 from any special fund relating to [such] that department to the
 
 7 general revenues of the State all or any portion of moneys
 
 8 determined to be in excess of [fiscal year requirements for such
 
 9 special fund,] expenditure estimates required under paragraph
 
10 37-47(7); except for special funds under the control of the
 
11 department of transportation relating to highways, airports,
 
12 transportation use, and harbors activities, special funds under
 
13 the control of the Hawaii health systems corporation, and special
 
14 funds of the University of Hawaii.  At any time the department of
 
15 transportation, with the approval of the governor or the director
 
16 of finance if so delegated by the governor, may transfer from any
 
17 special fund under the control of the department of
 
18 transportation, or from any account within any such special fund,
 
19 to the general revenues of the State [or to any other special
 
20 fund under the control of the department of transportation] all
 
21 or any portion of moneys determined to be in excess of
 
22 requirements for the ensuing twelve months [determined as
 
23 prescribed by rules adopted pursuant to chapter 91;] as provided
 

 
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 1 under paragraph 37-47(7); provided that no such transfer shall be
 
 2 made which would cause a violation of federal law or federal
 
 3 grant agreements."
 
 4      SECTION 9.  Section 378-62, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "[[]§378-62[]]  Discharge of, threats to, or discrimination
 
 7 against employee for reporting violations of law.  An employer
 
 8 shall not discharge, threaten, or otherwise discriminate against
 
 9 an employee regarding the employee's compensation, terms,
 
10 conditions, location, or privileges of employment because:
 
11      (1)  The employee, or a person acting on behalf of the
 
12           employee, reports or is about to report to a public
 
13           body, verbally or in writing, a violation or a
 
14           suspected violation of a law or rule adopted pursuant
 
15           to law of this State, a political subdivision of this
 
16           State, or the United States, unless the employee knows
 
17           that the report is false; [or]
 
18      (2)  An employee is requested by a public body to
 
19           participate in an investigation, hearing, or inquiry
 
20           held by that public body, or a court action[.]; or
 
21      (3)  The employee fails to comply with a directive by an
 
22           employer to provide any committee of the legislature
 
23           with false, inaccurate, incomplete, or misleading
 

 
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 1           information."
 
 2      SECTION 10.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 11.  This Act shall take effect upon its approval.
 
 5 
 
 6                           INTRODUCED BY:  _______________________