A BILL FOR AN ACT

SECTION 1. SHORT TITLE. This Act shall be known and may be cited as the General Appropriations Act of 2001.

SECTION 2. In accordance with Sections 37-92(b) and 37-92(h) of the Hawaii Revised Statutes, it has been determined that the appropriations contained in this Act will cause the general fund appropriation ceiling of the executive branch to be exceeded in fiscal year 2001-2002 by $151,000,000 or 4.4%, and in fiscal year 2002-2003 by $9,700,000 or .03%. The reason for exceeding the executive branch general fund appropriation ceiling is to ensure that the public interest is served, and to meet the needs provided by this Act.

SECTION 3. DEFINITIONS. Unless otherwise clear from the context, as used in this Act:

1. "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.
2. "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

3. "Means of financing," or "MOF" means the source from which funds are appropriated, or authorized, as the case may be, 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 meaning:

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 other federal funds

R private contributions

S county funds

T trust funds

U interdepartmental transfers

W revolving funds

X other funds

4. "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.
5. "Capital project number" means the official number of the capital project, as assigned by the responsible organization.

SECTION 4. 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, 2001, and ending June 30, 2003. 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 year, except as provided elsewhere in this Act, or as provided by general law.

SECTION 5. Provided that of the general fund appropriation for agricultural resource management (AGR 141), the sum of $140,400 for fiscal year 2001-2002 and the sum of $140,400 for fiscal year 2002-2003 shall be deposited into the irrigation system revolving fund to be expended for purposes of the fund.

SECTION 6. Provided that of the general fund appropriation for agribusiness development and research (AGR 161), the sum of $190,558 for fiscal year 2001-2002 and the sum of $190,558 for fiscal year 2002-2003 shall be deposited into the Hawaii agricultural development revolving fund to be expended for purposes of the fund.

SECTION 7. Provided that of the special fund appropriations for harbors administration (TRN 395), the sum of $500,000 in fiscal year 2001-2002 and the sum of $500,000 in fiscal year 2002-2003 shall be expended from the environmental contingency fund for cleanups of oil spillage in harbors; provided further that such expenditures shall be used only for those spillages resulting from existing underground pipeline leaks.

SECTION 8. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sum of $107,397,431 for fiscal year 2001-2002 and the sum of $119,481,730 for fiscal year 2002-2003 shall be used to pay for health fund benefits for department of education employees and transferred to the program planning, analysis and budgeting program (BUF 101) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 9. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sum of $118,175,705 for fiscal year 2001-2002 and the sum of $137,418,286 for fiscal year 2002-2003 shall be used to pay for debt service on general obligation bonds issued for department of education projects and transferred to the financial administration program (BUF 115) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 10. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sums of $44,978,086 and $54,842,386 for fiscal year 2001-2002 and the sums of $44,317,646 and $55,816,091 for fiscal year 2002-2003 shall be used to pay for fiscal year pension accumulation contributions and social security/Medicare contributions, respectively, for department of education employees and transferred to the retirement program (BUF 141) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 11. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $39,148,874 for fiscal year 2001-2002 and the sum of $43,560,213 for fiscal year 2002-2003 shall be used to pay for health fund benefits for university of Hawaii employees and transferred to the program planning, analysis and budgeting program (BUF 101) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 12. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $54,542,633 for fiscal year 2001-2002 and the sum of $63,423,824 for fiscal year 2002-2003 shall be used to pay for debt service on general obligation bonds issued for university of Hawaii projects and transferred to the financial administration program (BUF 115) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 13. Provided that of the general fund appropriation for systemwide support (UOH 900), the sums of $18,852,954 and $21,995,891 for fiscal year 2001-2002 and the sums of $18,576,124 and $22,386,420 for fiscal year 2002-2003 shall be used to pay for fiscal year pension accumulation contributions and social security/Medicare contributions, respectively, for university of Hawaii employees and transferred to the retirement program (BUF 141) of the department of budget and finance for that purpose; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 14. Provided that of the special fund appropriation for spectator events and shows (AGS 889), the sum of $2,500 for fiscal year 2001-2002 and the sum of $2,500 for fiscal year 2002-2003 may be expended at the discretion of the stadium manager for promotion and other stadium-related purposes.

SECTION 15. Provided that of the general fund appropriation for program planning analysis and budgeting (BUF 101), the sum of $2,933,682 in fiscal year 2002-2003 shall be expended to pay for vacation credits of officers and employees of the outgoing administration; provided further that the funds shall be allotted to the appropriate state departments according to procedures determined by the director of finance.

SECTION 16. Provided that of the general fund appropriation for the office of the governor (GOV 100), the sum of $15,000 in fiscal year 2001-2002 and the sum of $15,000 in fiscal year 2002-2003 shall be used for the governor's "contingent fund" pursuant to section 37-71(f) of the Hawaii Revised Statutes; 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 17. 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; provided 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.)

SECTION 18. Provided that of the general obligation bond fund appropriation for physical plant operations and maintenance (AGS 807), the sum of $50,000,000 in fiscal year 2001-2002 and the sum of $50,000,000 in fiscal year 2002-2003 shall be expended only for repairs and maintenance of school facilities.

SECTION 19. Provided that of the general obligation bond fund appropriation for university of Hawaii systemwide support (UOH 900), the sum of $20,000,000 in fiscal year 2001-2002 and the sum of $20,000,000 in fiscal year 2002-2003 shall be expended only for improvements and repairs and maintenance of university facilities systemwide.

SECTION 20. Any law to the contrary notwithstanding, the appropriations which are denoted as necessary to qualify for federal aid financing and/or reimbursement under Act 316, Session Laws of Hawaii 1989, section 222, as amended by Act 299, Session Laws of Hawaii 1990, section 6, in the amounts indicated or balances thereof, unallotted, allotted, encumbered, and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-21 $ 80,820 C"

SECTION 21. Any law to the contrary notwithstanding, the appropriations under Act 91, Session Laws of Hawaii 1999, section 64, as amended by Act 281, Session Laws of Hawaii 2000, section 5, in the amounts indicated or balances thereof, unallotted, allotted, encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-9B $5,220,000 B

C-10A 1,134,000 B

G-57 75,000 C

G-58 65,000 C

G-64 110,000 C

G-68 50,000 C

G-71 200,000 C"

SECTION 22. Any law to the contrary notwithstanding, the appropriations which are denoted as necessary to qualify for federal aid financing and/or reimbursement under Act 91, Session Laws of Hawaii 1999, section 64, as amended by Act 281, Session Laws of Hawaii 2000, section 5, in the amounts indicated or balances thereof, unallotted, allotted, encumbered, and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

G-59 $ 750,000 N"

SECTION 23. GOVERNOR'S DISCRETIONARY POWERS. When it is deemed in the public interest of the State, the governor, in his discretion, is authorized to use general fund savings or balances determined to be available from authorized general fund program appropriations to finance capital improvement projects authorized in this Act or any other act currently authorized by the legislature, where the method of financing is designated to be the general obligation bond fund. 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 24. 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, such additional principal amount as may be deemed 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 aforementioned 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. 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.

The governor, in his discretion, is authorized to use the airport 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 airport revenue bond funds.

SECTION 25. 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 by 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, and 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 his 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 26. HIGHWAY REVENUE BONDS. The department of transportation is authorized to issue highway revenue bonds for highway capital improvement 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 his discretion, is authorized to use moneys in the State highway fund to finance those highway capital improvement projects authorized in part II and listed in part IV of this Act where the method of financing is designated to be by revenue bond funds.

SECTION 27. SMALL BOAT HARBOR REVENUE BONDS. The department of land and natural resources is authorized to issue small boat harbor revenue bonds for small boat harbor capital improvement 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. The principal amount of such bonds shall be sufficient to yield the amounts appropriated for such capital improvements, 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 construction period of the capital improvement project for which such small boat harbor revenue bonds are issued, to establish, maintain, or increase reserves for the small boat harbor revenue bonds, and to pay the expenses for the issuance of such bonds. The aforementioned small boat 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 the small boat 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 from small boat harbors and related facilities under the ownership of the State or operated and managed by the department. The revenues shall include rents, mooring, wharfage, dockage, and permit fees, and other fees or charges presently or hereafter derived from or arising through the ownership and operation of small boating activities and the furnishing and supplying of the services thereof. The expenses of the issuance of such small boat harbor revenue bonds shall, to the extent not paid from the proceeds of such bonds, be paid from the harbor special fund.

SECTION 28. PUBLIC FACILITY REVENUE BONDS. The Hawaii Community Development Authority is authorized to issue revenue bonds for public facility 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. The principal amount of such bonds shall be sufficient to yield the amounts appropriated to construct, acquire, remodel, furnish, and equip any public facility, including acquisition of the site thereof. Additionally, if so determined by the authority and approved by the governor, the principal amount of such bonds shall be in an additional amount deemed necessary by the Authority to pay interest on such revenue bonds during the estimated period of construction of the capital improvement project for which such public facility revenue bonds are issued, to establish, maintain, or increase reserves for such public facility revenue bonds, and to pay all or any part of the expenses related to the issuance of such public facility revenue bonds. The aforementioned public 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 such public facility revenue bonds, to the extent not paid from the proceeds of such public facility revenue bonds, shall be payable from and secured by the revenues derived from the public facility for which the revenue bonds are issued, including revenue derived from insurance proceeds and reserve accounts and earnings thereon.

SECTION 29. HAWAIIAN HOME LANDS REVENUE BONDS. The department of Hawaiian home lands is authorized to issue Hawaiian home lands revenue bonds for Hawaiian home lands capital improvement 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, and, if so determined by the department and approved by the governor, such additional amounts as may be deemed necessary by the department to increase reserves for the Hawaiian home lands revenue bonds and to pay the expenses of the issuance of such bonds. Notwithstanding any limitations contained in any prior authorization of Hawaiian home lands revenue bonds, the aforementioned Hawaiian home lands revenue bonds and all prior authorized 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 Hawaiian home lands revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable from and secured by the revenues from Hawaiian home lands, revenues from available lands and related facilities under the ownership of the State or operated and managed by the department or such parts of either thereof as the department may determine, including rents and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of Hawaiian home lands, available lands and related facilities. The expenses of the issuance of such Hawaiian home lands revenue bonds, to the extent not paid from the proceeds of such bonds, shall be paid from the Hawaiian home lands special fund.

The governor, in the governor's discretion, is authorized to use the Hawaiian home lands 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 the Hawaiian home lands revenue bond funds.

SECTION 30. HOUSING REVENUE BONDS. The housing finance and development corporation is authorized to issue housing revenue bonds for housing capital improvement projects authorized in Part II and listed in Part IV of this Act and designated to be financed by revenue bond funds in such principal amounts as shall be required to yield the amounts appropriated for such capital improvements, and, if so determined by the corporation and approved by the governor, such additional amounts as may be deemed necessary by the corporation to increase reserves for the housing revenue bonds and to pay the expenses of the issuance of such bonds. The aforementioned housing 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 housing revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable and secured by revenues from housing and related facilities under the ownership of the State or operated and managed by the department or such parts of either thereof as the department may determine, including rents and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of housing and related facilities.

SECTION 31. HOSPITAL REVENUE BONDS. The Hawaii Health Systems Corporation is authorized to issue hospital revenue bonds for hospital capital improvements program projects authorized in part II and listed in part IV of this Act and designated to be financed by revenue bond 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 corporation and approved by the governor, such additional principal amount as may be deemed necessary by the corporation to pay interest on such hospital revenue bonds during the estimated period of construction of the capital improvements program project for which such hospital revenue bonds are issued, to establish, maintain, or increase reserves for such hospital revenue bonds, and to pay all or any part of the expenses related to the issuance of such hospital revenue bonds. The aforementioned hospital 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, except that such bonds shall be issued in the name of the corporation and not in the name of the state. The principal of and interest on such hospital revenue bonds, to the extent not paid from the proceeds of such hospital revenue bonds, shall be payable from and secured by the revenues derived from facilities under the ownership or operated and managed by the corporation, or such part of any thereof as the corporation may determine, including other moneys, rates, rents, fees or charges currently or hereafter derived from or arising through the ownership, operation, and management of hospitals and related facilities and the furnishings and supplying of the services thereof. The expenses related to the issuance of such hospital revenue bonds, to the extent not paid from the proceeds of such bonds, shall be paid from the facility administration fund of the corporation.

SECTION 32. SPECIAL FACILITY REVENUE BONDS. The High Technology Development Corporation is authorized to issue special facility revenue bonds for high technology special facility 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. The principal amount of such bonds shall be sufficient to yield the amounts appropriated to construct, acquire, remodel, furnish, and equip any high technology facility, including acquisition of the site thereof. Additionally, if so determined by corporation and approved by the governor, the principal amount of such bonds shall be in an additional amount deemed necessary by the corporation to pay interest on such special facility revenue bonds during the estimated period of construction of the capital improvement project for which such high technology special facility revenue bonds are issued, to establish, maintain, or increase reserves for such high technology special facility revenue bonds, and to pay all or any part of the expenses related to the issuance of such high technology special facility revenue bonds. The aforementioned high technology special 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 such high technology special facility revenue bonds, shall be payable from and secured by the revenues derived from the high technology facility for which the special facility revenue bonds are issued, including revenue derived from insurance proceeds and reserve accounts and earnings thereon.

SECTION 33. HAWAII COMMUNITY DEVELOPMENT AUTHORITY SPECIAL FACILITY REVENUE BONDS. The Hawaii Community Development Authority is authorized to issue special facility revenue bonds for special facility 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. The principal amount of such bonds shall be sufficient to yield the amounts appropriated to construct, acquire, remodel, furnish, and equip any special facility, including acquisition of the site thereof. Additionally, if so determined by the authority and approved by the governor, the principal amount of such bonds shall be in an additional amount deemed necessary by the Authority to pay interest on such special facility revenue bonds during the estimated period of construction of the capital improvement project for which such special facility revenue bonds are issued, to establish, maintain, or increase reserves for such special facility revenue bonds, and to pay all or any part of the expenses related to the issuance of such special facility revenue bonds. The aforementioned special 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 such special facility revenue bonds, to the extent not paid from the proceeds of such special facility revenue bonds, shall be payable from and secured by the revenues derived from the special facility for which their special facility revenue bonds are issued, including revenue derived from insurance proceeds and reserve accounts and earnings thereon.

SECTION 34. Provided that to the extent that the sums appropriated for the payment of principal and interest on general obligation bonds are insufficient to meet and pay all such obligations when due in accordance with the terms of such bonds, the governor shall direct the utilization of any or all appropriations available or unexpended from any other state program, as the first charge for the payment of principal and interest of the bonds when due; and provided further, that the legislature shall, under procedures established in section 10 of article III of the Hawaii State Constitution, meet in special session to comply with the provisions of section 12 of article VII of the Hawaii State Constitution, which pledge the full faith and credit of the State for the payment of principal and interest on all general obligation and reimbursable general obligation bonds.

SECTION 35. 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 201E, 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, the economic development special fund, or other appropriate special fund, 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 by general obligation bond fund with debt service cost to be paid from the funds; provided that the governor shall submit a report to the legislature on such changes in the method of financing of such projects.

SECTION 36. Any law or 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 2001-2003 which are unencumbered as of June 30, 2003, shall lapse as of that date; provided further that this lapsing date shall not apply to: a) appropriations for projects described in section 17 of this Act where the means of funding is designated to be the state educational facilities improvement special fund, and where such appropriations have been authorized for more than three years for the construction or acquisition of public school facilities; and b) non-general fund appropriations for projects described in section 17 of this Act where such appropriations have been deemed necessary to qualify for federal aid financing and reimbursement.

SECTION 37. 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, provided that the total expenditure of funds for all cost elements shall not exceed the total appropriations for that project.

SECTION 38. After the objectives of appropriations made in this Act from the general obligation bond fund or the general fund for capital improvement projects have been met, unrequired balances 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, 2003, as provided in section 35 of this Act.

SECTION 39. 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 or the general 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; and provided further that such supplemental allotments from the project adjustment fund shall not be used to increase the scope of the project.

SECTION 40. In the event that the authorized appropriations specified for a capital improvement project listed in this Act is 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 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; provided further that such supplemental allotments shall not impair the ability of the fund to meet the purposes for which it was established.

SECTION 41. Where it has been determined that changed conditions, such as 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 42. In releasing funds for capital improvement projects, the governor shall consider the 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. Agencies responsible for construction shall take into consideration the objectives of the user agency, its programs, 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 43. 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 such projects when it is determined by all involved agencies and parties that it is advantageous to do so.

SECTION 44. Where county capital improvement projects are partially or totally funded by state grants-in-aid 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 45. The governor may authorize the expenditure of funds for capital improvement projects not previously authorized in this Act to cope with the effects of recession, unemployment, natural disasters, unforeseen emergencies, and for any federal aid portion of any capital improvement project described in this Act where application for such aid has been made and approval has been unexpectedly denied; provided that the effects of recession, unemployment, natural disaster, emergencies or denial of federal aid create an urgent need to pursue a course of action which is in the best interest of the State 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 46. 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 47. 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 48. There is hereby appropriated out of the public trust fund created by section 5(f) of the Admissions Act (Public Law No. 86-3) the total amount of the proceeds from the sale or other disposition of any lands, and the income therefrom granted to the State by section 5(b) or later conveyed to the State by section 5(e), with the exception of such proceeds covered under section 171-19, Hawaii Revised Statutes, to be disposed of by the board of land and natural resources, and with the exception of such proceeds to be expended by the Office of Hawaiian Affairs under chapter 10, Hawaii Revised Statutes, in order to reimburse the general fund for the appropriation made in part II of this Act to the department of education for the support of public schools, to the extent such proceeds are realized for the period beginning July 1, 2001 to June 30, 2003. The above proceeds shall be exclusive of the amount disposed of under the provisions of the Hawaiian Homes Commission Act of 1920, as amended.

SECTION 49. All grants to private organizations in this Act are made in accordance with the standard that the private programs so funded yield direct benefits to the public and accomplish public purposes.

SECTION 50. 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 so specified. In the event that the caseload trend is higher than the specified figure or the reasonable average daily cost of medical care for the needy and medically needy exceeds the anticipated average sum per patient day, or the caseload trend or average payments for money assistance payments is higher than the specified figure, the governor is authorized to utilize savings as may be available from any other state program for the purpose of meeting the additional expenses of the social welfare program of the department of human services.

SECTION 51. With the approval of the director of finance, 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 52. 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. 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 53. Provided that the department of human services shall use sixty percent of the most recent available profile of the customary fees of health care practitioners, adjusted to the seventy-fifth percentile within the limits of this appropriation, in establishing fees for individual practitioners for health care payments (HMS 230), in fiscal year 2001-2002 and in fiscal year 2002-2003.

SECTION 54. The governor may authorize the transfer of positions and funds from the department of health to the department of education to address Felix Consent Decree requirements; provided further that any transfers shall be based on the transfer of responsibility for Felix clients and/or treatments from the department of health to the department of education.

SECTION 55. Unless otherwise provided in this Act, the governor is authorized to transfer operating funds between appropriations with the same means of funding, within an expending agency for operating purposes.

SECTION 56. 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 57. Provided that notwithstanding any position ceiling, the governor may transfer positions and funds appropriated in Office of the Governor (GOV 100) to any executive program of the state for the purpose of providing and coordinating statewide information technology needs; provided further that the governor may transfer positions and funds for information technology needs appropriated to any Executive program of the State to the Office of the Governor.

SECTION 58. 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 59. Provided that the governor may approve the expenditure of federal funds which are in excess of levels authorized by the legislature when the legislature is not in session; provided further that the governor may allow for an increase in the federal fund authorization ceiling for the program to accommodate the expenditure of such funds.

SECTION 60. The governor is hereby authorized to establish ten permanent positions during each year of the fiscal biennium 2001-2003 to be allocated by the governor to any of the program areas included in this Act as deemed proper; provided further that no positions shall be established under this section to implement any collective bargaining agreement signed after the legislature adjourns sine die.

SECTION 61. 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 62. Where any agency is authorized by general law 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 this section comply with applicable State constitutional and statutory requirements.

SECTION 63. 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 64. Provided that statewide savings may be transferred to the forest wildlife resource program (LNR 402) for fire suppression purposes; provided further that such transfers shall not exceed $300,000 in each fiscal year of fiscal biennium 2001-2003.

SECTION 65. The governor is authorized to transfer savings 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 recession, unemployment, natural disasters, and other unforeseen emergencies; provided that the effects of recession, unemployment, natural disaster, or such emergencies create an urgent need to pursue a course of action which is in the best interest of the State.

SECTION 66. 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 other appropriate program fund.

SECTION 67. Provided that, of the respective appropriation for each principal state department as defined by section 26-4, Hawaii Revised Statutes, the sum of $2,500 in fiscal year 2001-2002 and the sum of $2,500 in fiscal year 2002-2003 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 heads of such departments which are respectively known as its directors, chairpersons, comptroller, adjutant-general, superintendent, president, and attorney general.

SECTION 68. Except as otherwise provided, the appropriation for the office of the governor (GOV 100) shall be expended at the discretion of the governor.

SECTION 69. 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 70. 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 authorized for that purpose to the internal post audit program (AGS 104), when it is determined by such agencies that it is advantageous to do so.

SECTION 71. With the approval of the governor, expending agencies that use appropriations authorized in part II of this Act for repair and alterations, may delegate responsibility and transfer funds to the construction program (AGS 221) for the implementation of such repair and alterations, when it is determined by such agencies that it is advantageous to do so.

SECTION 72. 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 73. Provided that the director of finance may use statewide savings 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 telecommunication equipment; provided further that such transfers shall not exceed $20,000,000.

SECTION 74. MISCELLANEOUS. 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 75. 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 76. Material to be repealed is bracketed. New material in prior enacted laws is underscored.

SECTION 77. EFFECTIVE DATE. This Act shall take effect on July 1, 2001.