Establishes litigation deposits trust fund. Repeals exemption of compliance resolution fund and insurance regulation fund from fees for central services. Authorizes payments for state art museum from works of art special fund. Transfers non-general funds to the general fund. (HB1245 SD1)

A BILL FOR AN ACT

PART I

SECTION 1. Chapter 28, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§28-   Litigation deposits trust fund. (a) There is created in the state treasury the litigation deposits trust fund. There shall be deposited into this fund all moneys received through any civil action where the settlement amount is $100,000 or higher, and in which the State is a party to a civil action except for those departments able to procure their own legal services as provided for by section 28-8.3 and where there is no other state statute specifically providing for the deposit of these moneys.

(b) The fund shall be under the control of the department of the attorney general. The department shall maintain accounting records pertaining to the fund, including subsidiary records of individual litigation deposits and disbursements thereof. Moneys in one subsidiary account shall not be intermingled with moneys from another account except for deposit or investment purposes under subsection (d).

(c) Disbursements from each account maintained under subsection (b) may include attorneys' fees and other necessary expenses that the department determines to be reasonable and that are directly related to the prosecution of the civil action for which the account is maintained; provided that in the case of moneys deposited as a result of recoveries for a non-general fund, the moneys shall be held and disbursed intact for deposit to the credit of the non-general fund. Any money deposited in the fund pursuant to an order of the court shall be disbursed in accordance with the order of the court. Any residue remaining in an account shall be transferred to the respective non-general or general fund for which the civil action resulted from, no later than thirty days after the civil action for which the account is maintained is closed and all costs of that civil action have been paid, unless otherwise provided for by statute.

(d) Money in the fund may be invested in any securities described in section 36-21 by the department.

All earnings from the investment of such funds shall be deposited to the credit of the general fund.

(e) The department shall submit a report on the transactions that take place in the fund for each fiscal year by subsidiary account; and, the collections made in any amount on behalf of other departments and agencies broken down by numbers of transactions and amount collected for each department and agency to the legislature no later than twenty days prior to the start of every regular session."

SECTION 2. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. 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:

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 3. Section 103-8.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The works of art special fund shall be used solely for the following purposes:

SECTION 4. Section 328L-3, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The legislature may make appropriations from the fund for the following purposes:

Any act making appropriations from the emergency and budget reserve fund shall include a declaration of findings and purposes setting forth the purposes, the amounts, and the reasons why the appropriations are necessary and shall require a two-thirds majority vote of each house of the legislature."

PART II

SECTION 5. The legislature determines that there is in the agricultural loan revolving fund at least $1,200,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the agricultural loan revolving fund to the general fund the sum of $1,200,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 6. The legislature determines that there is in the animal quarantine special fund at least $190,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the animal quarantine special fund to the general fund the sum of $190,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 7. The legislature determines that there is in the financial assistance for agriculture special fund at least $1,250,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the financial assistance for agriculture special fund to the general fund the sum of $1,250,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 8. The legislature determines that there is in the parking control revolving fund at least $2,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the parking control revolving fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 9. The legislature determines that there is in the stadium special fund at least $2,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the stadium special fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 10. The legislature determines that as of December 31, 2000 there was in the capital loan revolving fund, at least $5,025,000 in excess of the requirements of the fund. Notwithstanding any interdepartmental transfer of funds from the capital loan revolving fund subsequent to December 31, 2000, on July 1, 2001, the director of finance is authorized to transfer from the capital loan revolving fund, the Hawaii technology loan revolving fund, the state disaster revolving loan fund, the Hawaii innovation development fund and the Hawaii strategic development corporation fund to the general fund the combined sum of $5,025,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 11. The legislature determines that there is in the dwelling unit revolving fund at least $13,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the dwelling unit revolving fund to the general fund the sum of $13,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 12. The legislature determines that there is in the Hawaii community development revolving fund at least $8,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the Hawaii community development revolving fund to the general fund the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 13. The legislature determines that there is in the rental housing trust fund at least $3,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the rental housing trust fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 14. The legislature determines that there is in the tourism special fund at least $10,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the tourism special fund to the general fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 15. The legislature determines that there is in the compliance resolution special fund at least $10,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the compliance resolution special fund to the general fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 16. The legislature determines that there is in the insurance regulation fund at least $1,500,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the insurance regulation fund to the general fund the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 17. The legislature determines that there is in the environmental response revolving fund at least $1,000,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the environmental response revolving fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 18. The legislature determines that there is in the boiler and elevator safety revolving fund at least $200,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the boiler and elevator safety revolving fund to the general fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 19. The legislature determines that there is in the employment and training fund at least $2,200,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the employment and training fund to the general fund the sum of $2,200,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 20. The legislature determines that there is in the bureau of conveyances special fund at least $400,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the bureau of conveyances special fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 21. The legislature determines that there is in the natural area reserve fund at least $920,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the natural area reserve fund to the general fund the sum of $920,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 22. The legislature determines that there is in the special land and development fund at least $2,500,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the special land and development fund to the general fund the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 23. The legislature determines that there is in the state parks special fund at least $400,000 in excess of the requirements of the fund. On July 1, 2001, the director of finance is authorized to transfer from the state parks special fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2001-2002.

SECTION 24. On July 1, 2001, the following amounts shall be paid into the general fund from accounts established in the state treasury:

SECTION 25. There is appropriated out of the works of art special fund the sum of $800,000, or so much thereof as may be necessary for fiscal year 2001-2002, for ancillary improvements for the state art museum.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

PART IV

SECTION 26. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 27. This Act shall take effect on July 1, 2001.