Proposes an amendment to Article VII, section 11 of the state constitution to require ----- percent of unencumbered appropriations to lapse with the remainder returned to the using agency.

A BILL FOR AN ACT

proposing an amendment to article vii, section 11 of the hawaii constitution relating to lapsing of appropriations.

SECTION 1. The purpose of this Act is to propose an amendment to Article VII, Section 11, of the Constitution of the State of Hawaii to provide that only ----- percent of unencumbered appropriations will lapse with the remainder being returned to the using agency, in order to encourage greater efficiency and economical operations by State agencies.

SECTION 2. Article VII, section 11, of the Constitution of the State of Hawaii is amended to read as follows:

"LAPSING OF APPROPRIATIONS

Section 11. All appropriations for which the source is general obligation bond funds or general funds shall be for specified periods. No such appropriation shall be made for a period exceeding three years; provided that appropriations from the state educational facilities improvement special fund may be made for periods exceeding three years to allow for construction or acquisition of public school facilities. [Any] ---- percent of any such appropriation or ---- percent of any portion of any such appropriation that is unencumbered at the close of the fiscal period for which the appropriation is made shall lapse; provided that no appropriation for which the source is general obligation bond funds nor any portion of any such appropriation shall lapse if the legislature determines that the appropriation or any portion of the appropriation is necessary to qualify for federal aid financing and reimbursement. The remainder of the appropriation or any portion of such appropriation shall be returned to the agency that was using the appropriation. Where general obligation bonds have been authorized for an appropriation, the amount of the bond authorization shall be reduced in an amount equal to the amount lapsed."

SECTION 3. The question to be printed on the ballot shall be as follows:

SECTION 4. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 5. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.