Consolidates the budget and finance functions performed by the Department of Budget and Finance and the accounting functions performed by the Department of Accounting and General Services. Renames the Department of Accounting and General Services as the Department of General Services. (SB1042 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that there is a need to streamline the State’s fiscal functions to improve financial oversight and planning through improved coordination of functions, policies, and procedures relating to finances.

The purpose of this Act is to consolidate the budget and finance functions performed by the department of budget and finance and the accounting functions performed by the department of accounting and general services. This Act also renames the department of accounting and general services as the department of general services.

SECTION 2. Section 26-4, Hawaii Revised Statutes, is amended to read as follows:

"§26-4 Structure of government. Under the supervision of the governor, all executive and administrative offices, departments, and instrumentalities of the state government and their respective functions, powers, and duties shall be allocated among and within the following principal departments that are hereby established:

SECTION 3. Section 26-6, Hawaii Revised Statutes, is amended to read as follows:

"§26-6 Department of [accounting and] general services. (a)  The department of [accounting and] general services shall be headed by a single executive to be known as the [comptroller.] director of general services.

(b) The department shall:

The state communication system shall be established to:

3. The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings, and for the operation and implementation of a program to provide a means for public access to the State’s information network system and public information. The rules shall be adopted pursuant to chapter 91.
4. The King Kamehameha celebration commission shall be placed within the department of [accounting and] general services for administrative purposes. The functions, duties, and powers, subject to the administrative control of the [comptroller,] director of general services, and the composition of the commission shall be as heretofore provided by law.

[(e) The functions and authority heretofore exercised by the comptroller, board of commissioners of public archives, the archivist, the disposal committee, and the insurance management, surplus property management, and central purchasing functions of the bureau of the budget and the nonhighway functions of the department of public works as heretofore constituted are transferred to the department of accounting and general services established by this chapter.]"

SECTION 4. Section 26-8, Hawaii Revised Statutes, is amended to read as follows:

"§26-8 Department of budget and finance. (a)  The department of budget and finance shall be headed by a single executive to be known as the director of finance.

1. The department shall:

[(c) The functions and authority heretofore exercised by the bureau of the budget (except for insurance management, surplus property management, and central purchasing transferred to the department of accounting and general services) and the funds custody, cash management, debt management, and administering of veterans loan functions of the treasurer as heretofore constituted are transferred to the department of budget and finance established by this chapter.

(d)] (c) The [employees] employees’ retirement system as constituted by chapter 88 is placed within the department of budget and finance for administrative purposes. The functions, duties, and powers, subject to the administrative control of the director of finance, and the composition of the board of trustees of the [employees] employees’ retirement system shall be as heretofore provided by law.

(d) The public utilities commission is placed within the department of budget and finance for administrative purposes only."

SECTION 5. Section 26-52, Hawaii Revised Statutes, is amended to read as follows:

"§26-52 Department heads and executive officers. The salaries of the following state officers shall be as follows:

1. The salary of the superintendent of education shall be set by the board of education at a rate no greater than $150,000 a year;
2. The salary of the president of the University of Hawaii shall be set by the board of regents;
3. The salaries of all department heads or executive officers of the departments of [accounting and general services,] agriculture, attorney general, budget and finance, business, economic development, and tourism, commerce and consumer affairs, general services, Hawaiian home lands, health, human resources development, human services, labor and industrial relations, land and natural resources, public safety, taxation, and transportation shall be $85,302 a year; and
4. The salary of the adjutant general shall be $85,302 a year; provided that if this salary is in conflict with the pay and allowance fixed by the tables of the regular army or air force of the United States, the latter shall prevail."

SECTION 6. Section 21F-8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§21F-8[]] Agencies to cooperate. All departments, agencies, and education institutions of the executive and judicial branches, the office of Hawaiian affairs, and the University of Hawaii shall comply with requests of the office of the legislative analyst for information, data, estimates, and statistics on the funding revenue operations, and other affairs of the department, agency, education institution, the office of Hawaiian affairs, or University of Hawaii. The [comptroller, the] director of finance, the director of taxation, the administrative director of the courts, the administrator of the office of Hawaiian affairs, and the president of the University of Hawaii shall provide the office of the legislative analyst with full and free access to information, data, estimates, and statistics in the possession of their respective departments on the state budget, revenue, expenditures, and tax revenue and expenditures."

SECTION 7. Section 37-35, Hawaii Revised Statutes, is amended to read as follows:

"§37-35 Estimated expenditures; approval. (a) The director of finance shall review all estimates submitted under section 37-34 and, having due regard for:

provided that the] (b) The director of finance shall approve the estimates submitted by the University of Hawaii when:

(c) The director of finance shall act promptly upon all estimates and notify each department or establishment of its [allotment, and shall notify the comptroller.] allotment."

SECTION 8. Section 38-2, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f)  All deposits of money, except time deposits, shall be paid upon demand on checks [signed by] bearing dual signatures of the director and [countersigned by the comptroller,] the director’s representative, or by the payment of a certificate of deposit issued by the depository, which certificate shall be endorsed by the payee named therein, as well as by the [comptroller,] director’s representative, or by preauthorized automatic transfer of funds between transaction accounts held within the same depository. Transaction accounts, as defined in Regulation D of the Federal Reserve System, as authorized by Section 19 (12 U.S.C. 461 et seq.) of the Federal Reserve Act, includes all checking accounts, both demand and interest bearing. Each depository shall at the end of every month render to the director a statement, in duplicate, for each of the funds of the State, showing the daily balances on open commercial account which were held by it during the month. The duly authorized representatives of any depository shall at all times during office hours have access to the securities deposited by the depository to secure the deposits of the State for the purpose of examining the same and removing the coupons that may have matured, the examination to be made in the presence of the director or the director's representative."

SECTION 9. Section 38-4, Hawaii Revised Statutes, is amended to read as follows:

"§38-4 Provisions of depository contracts. Any acceptance by a depository of treasury moneys shall constitute an acceptance of the provisions of sections 38-2 and 38-3, and those provisions shall be deemed a part of and incorporated into the contract of deposit without any necessity for specific mention thereof. [The director shall file with the comptroller a copy of any formal written contract of deposit which may be entered into.]"

SECTION 10. Section 39-7, Hawaii Revised Statutes, is amended to read as follows:

"§39-7 Form and execution of bonds. Bonds issued pursuant to this part shall be in such form as the director of finance may determine, and shall be lithographed or steel engraved. All bonds issued pursuant to this part shall be manually signed by the director of finance or a deputy director of finance[, shall bear a lithographed or engraved facsimile of the signature of the comptroller of the State,] and shall be sealed with the seal or a lithographed or engraved facsimile of the seal of the department of budget and finance. In addition, fully registered bonds may be authenticated with the manual signature of the registrar, if any, thereunto duly appointed by the director of finance. Notwithstanding the preceding provisions of this section, the director of finance, with the approval of the governor, may provide that bonds issued pursuant to this part may be typewritten, printed, or otherwise reproduced[, and that the signature of the comptroller upon the bonds may be the comptroller's manual signature]. Interest coupons shall be executed with a lithographed or engraved facsimile of the signature of the director of finance. Pending the preparation of the definitive bonds, interim receipts, or certificates in such form and with such provisions as the director of finance may decide upon, may be issued to the purchaser or purchasers of bonds sold pursuant to this part."

SECTION 11. Section 39-8, Hawaii Revised Statutes, is amended to read as follows:

"§39-8 Same, signatures. When bonds of the State are prepared and signed by the director of finance or a deputy director of finance of the State [and the comptroller of the State] in office at the time of [such] the signing, [the] their signatures [of the director of finance or deputy director of finance and comptroller] shall be valid and sufficient for all purposes, and shall have the same effect as if the persons officially signing the bonds or whose facsimile signatures appear thereon had remained in office until the delivery of the same to the initial purchasers thereof, and in the case of fully registered bonds upon any exchange or transfer between subsequent holders thereof, notwithstanding that the term of office of those persons or any of them may have expired or they may otherwise have ceased to be officers before the delivery, exchange, or transfer. If the director of finance shall have designated a registrar for fully registered bonds, the director of finance may provide that no fully registered bond shall be valid or obligatory for any purpose unless certified or authenticated by the registrar. If the director of finance shall have provided for a registrar, then notwithstanding section 39-7, all signatures of the officers of the State upon the fully registered bonds may be facsimiles of the officers' signatures, and fully registered bonds shall be valid and sufficient only if certified or authenticated by the manual signature of an authorized officer or signatory of that registrar. Anything to the contrary notwithstanding, if blanks of fully registered bonds shall be held by a registrar pending exchange or transfer for other fully registered bonds of the same series, then upon delivery of bonds in an exchange or transfer, the bonds shall be valid and sufficient for all purposes notwithstanding that the signature of [the comptroller and] the director of finance or deputy director of finance appearing thereon shall be that of the person in office at the time of initial delivery of the bonds or that of the person in office at the time of such exchange or transfer."

SECTION 12. Section 39-31, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b)  All duplicate bonds in coupon form issued in place of bonds lost, stolen, wholly or partially destroyed, or defaced shall be lithographed or steel engraved unless otherwise provided in the proceedings authorizing the issuance thereof, and shall bear the manual signatures of the director of finance or a duly authorized deputy director of finance, [and the comptroller], and an impression of the seal of the department of budget and finance shall be affixed thereon. Interest coupons shall bear a lithographed or engraved facsimile of the signature of the director of finance. Each signature of an officer on a duplicate coupon bond shall be the signature of the person serving as the officer on the date of signing and any duplicate coupon bond so executed and sealed shall be valid and sufficient for all purposes. All duplicate bonds in fully registered form issued in place of bonds lost, stolen, wholly or partially destroyed, or defaced shall be from the stock of fully registered bonds of the series then held by the registrar for that series and shall be executed, sealed, and authenticated in the same manner as fully registered bonds of that series. Any duplicate fully registered bond executed, sealed, and authenticated as provided in this section shall be valid and sufficient for all purposes.

When the lost, stolen, wholly or partially destroyed, or defaced bond appears to have been of a class or series that has been called or will be called in for redemption or will mature within a period of one year following the date of application for a duplicate bond, instead of issuing a duplicate bond therefor, the director of finance, under conditions and upon such security, if any, as the director of finance may prescribe, may pay the bond at its call date with interest if it is already called for redemption or if it is to be called for redemption or will mature within the period of one year, or may issue a transferable certificate of ownership to the applicant, and pay on the certificate the call price of the bond represented thereby together with interest called for by the lost, stolen, wholly or partially destroyed, or defaced bond on the date of its call or its original maturity upon surrender of the certificate of ownership. All transferable certificates of ownership which may be issued pursuant to the terms hereof shall be in such form as the director of finance may prescribe and shall be signed by the director of finance or a duly authorized deputy director of finance [and by the comptroller of the State], and an impression of the seal of the department of budget and finance shall be affixed thereto.

All expenses necessary for the providing of any duplicate bond, coupon, or both, as the case may be, or certificate of ownership shall be borne by the owner thereof and the expenses shall be paid at the time the request for replacement is filed."

SECTION 13. Section 39-92, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a)  The director of finance shall annually as of July 1 of each fiscal year and following each issuance of general obligation bonds of the State ascertain and set forth in a table or other summary a statement evidencing the power of the State to issue general obligation bonds. In preparing the statements required by this section, the director of finance may rely on the statement of total outstanding indebtedness of the State and the exclusions therefrom prepared pursuant to section 39-93 to the extent such statement is concurred to by the attorney general [and the comptroller]. The statement shall include the following:

The items required above to be set forth in the statement may be disclosed in such manner or arrangement as the director of finance may deem advisable, and need not be separately stated if the captions, headings, or groupings disclose the information required to be set forth."

SECTION 14. Section 39-93, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d)  Upon the preparation by the director of finance of any statement and supporting schedules required by this section, the director shall submit such statement and supporting schedules to the attorney general for concurrence as to all legal findings upon which such statement and supporting schedules are based[, and to the comptroller for concurrence as to all matters therein]. The attorney general [and the comptroller] shall notify the director of finance in writing of [their] the attorney general’s concurrence in such statement and supporting schedules. If the attorney general [or the comptroller] shall disagree with any items included in the statement and supporting schedules, the attorney general [or the comptroller, as the case may be,] shall notify the director of finance in writing of concurrence as to all other items and as to items of disagreement and the reasons therefor. The director of finance shall thereupon certify the statement and supporting schedules to the governor and the presiding officers of the legislature, setting forth in such certification any items therein disagreed to by the attorney general [or the comptroller]. The statement and schedules so certified shall be conclusive as to all items therein concurred to by the attorney general [and the comptroller].

The director of finance shall reproduce and deliver to the legislature by December 1 of each year a sufficient number of copies of the certified statement prepared as of July 1 of the then current fiscal year, so that a copy of the statement may be distributed to each member of the legislature at the next regular session thereof. Only the statement itself shall be required to be reproduced, and the copies need not include any of the supporting schedules required by this section.

(e)  In the event the certification by the director of finance of any statement and supporting schedules filed with the governor and the presiding officers of the legislature shall set forth therein that the attorney general [or the comptroller] has disagreed as to any item therein, the governor, at the governor's election, or the legislature at its election, may direct the attorney general to file a declaratory judgment action in the name of the State against the director of finance. Such action may be filed in any circuit court of the State, which courts are hereby vested with jurisdiction over such actions. If the items disagreed to concern only questions of law and all facts involved are stipulated to by the attorney general[, comptroller,] and director of finance, the attorney general at the attorney general's discretion may file such action in the supreme court, which court is hereby vested with original jurisdiction over such action. Upon any findings and determinations having been made by the court, the director of finance shall revise the latest statement and supporting schedules issued to reflect such findings and determinations and shall certify the revised statement and supporting schedules to the governor and the presiding officers of the legislature.

In the event the certification by the director of finance shall set forth therein that the attorney general [or the comptroller] has disagreed to any item therein, until such time as the disagreement is resolved by a declaratory judgment action (1) if the subject matter of the disagreement is concerned with whether certain revenues constitute general fund revenues, or whether such revenues must be deducted in determining net general fund revenues for the purposes of this part, such revenues shall not be considered to be general fund revenues, or shall be deducted in determining net general fund revenues, as the case may be; and (2) if the subject matter of the disagreement is concerned with whether bonds may be excluded under section 13 of Article VII of the Constitution in determining the total outstanding indebtedness of the State, the bonds shall be included in making such determination."

SECTION 15. Section 40-2, Hawaii Revised Statutes, is amended to read as follows:

"§40-2 Accounting systems and internal control; enforcing the use of and inspection of the same. The accounting system installed by the commission on public accountancy under Act 181, Session Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for use in the offices of the [comptroller,] director of finance, departmental and agency services of the State, and the auditors, treasurers, departmental and agency services of the several counties shall be the accounting and reporting systems of the State and counties; provided that the University of Hawaii may install a different accounting system which shall be in conformity with generally accepted accounting principles as applied to colleges and universities; and provided further that the department of education may install a different accounting system which shall be in conformity to generally accepted accounting principles. The [comptroller] director of finance shall make such changes and modifications in the accounting system as shall from time to time appear to be in the best interest of the State and counties.

The departments and agencies of the executive branch are respectively charged with the responsibility to maintain an adequate system of internal control and with the further responsibility to see that the internal control system continues to function effectively as designed. The [comptroller] director of general services shall make such investigations and audits from time to time to enforce the use of the accounting system and internal control systems in the executive branch.

The judiciary, the legislature, and each county shall be responsible for the establishment and maintenance of its respective internal control system."

SECTION 16. Section 40-7, Hawaii Revised Statutes, is amended to read as follows:

"§40-7 Count of money and securities in treasury. The [comptroller] director of general services with the aid of the staff of the director of taxation and the director of finance shall count the money and securities in the state treasury once in each fiscal year, or such other times as the [comptroller] director of general services may deem necessary[,]; provided that the scope of the examination shall be determined by the [comptroller] director of general services who shall use such auditing procedures as the [comptroller] director of general services deems necessary.

The [comptroller] director of general services shall prepare, in triplicate, statements showing:

SECTION 17. Section 40-11, Hawaii Revised Statutes, is amended to read as follows:

"§40-11 Destruction of warrants, bonds and interest coupons. The director of finance [and comptroller] may destroy all warrants of the State which have been paid and bear any date three years prior to the date of destruction; provided that the warrants have been copied to an unalterable media or electronic storage form and the copies of the warrants are maintained for ten years from the date of the warrant. Otherwise, state warrants which have been paid cannot be destroyed until ten years from the date of the warrant. The director of finance [and comptroller] may destroy state bonds and interest coupons which have been paid and bear any date two years prior to the date of destruction. The director of finance [and comptroller] may appoint the fiscal agent for the bond issue to supervise and conduct the destruction of state bonds and interest coupons which have been paid and bear any date two years prior to the date of destruction. The fiscal agent so appointed shall submit reports as required by the director of finance [and comptroller]. State warrants, bonds, and interest coupons may be destroyed by burning, machine shredding, chemical disintegration, or any other method of disposal deemed acceptable to the director of finance [and comptroller]."

SECTION 18. Section 40-13, Hawaii Revised Statutes, is amended to read as follows:

"§40-13 Rules. In conformity with chapter 91, the [comptroller] director of finance and director of general services may make such rules not inconsistent with this chapter as may be found necessary to carry out the object and provisions of this chapter, and for the more effectual record, check, and audit of all receipts and disbursements of public moneys. These rules shall have the force and effect of law."

SECTION 19. Section 40-40, Hawaii Revised Statutes, is amended to read as follows:

"§40-40 Receipts and payments. For all moneys paid into the treasury there shall be prepared a treasury deposit receipt in the form and in the number of copies determined by the [comptroller] director of finance as provided in section 40-6. The receipt shall specify the information required by the [comptroller and the] director of finance for the proper accounting of the amount paid into the treasury. The receipt shall be countersigned by the director of finance, or the director's designee, after writing upon its face the day of its delivery to the director. The director, or the director's designee, shall deliver a copy of the receipt to the person or official paying the money into the treasury[, and shall deliver a copy to the comptroller]. The director shall retain the original receipt, charging the director with the amount specified therein, and crediting the fund or account named thereon. No receipt shall be considered valid or binding as against the State, unless so countersigned as in this chapter provided."

SECTION 20. Section 40-51.5, Hawaii Revised Statutes, is amended to read as follows:

"§40-51.5 Checks or electronic funds transfers in lieu of warrants. With reference to warrants addressed under this part, the [comptroller] director of finance may[, with the approval of the director of finance,] issue checks drawn from, or make electronic funds transfers from, depositories of state treasury moneys in lieu of warrants drawn from the state treasury."

SECTION 21. Section 40-53, Hawaii Revised Statutes, is amended to read as follows:

"§40-53 Salary and pension payments. (a)  All payments for permanent settlements, specific and all other salaries, excepting that of the [comptroller and deputy comptroller,] director of finance and deputy director of finance, shall be drawn by the [comptroller,] director of finance, payable to each individual to whom the State is directly indebted, except as provided for in section 40-58. No permanent settlements nor salary checks shall be paid by the director of finance until the person in whose favor the check is drawn shall have indorsed the person's signature thereon. The salaries of the [comptroller and deputy comptroller] director of finance and deputy director of finance shall be paid by the director when due as in this chapter provided upon checks approved by the governor.

(b)  All employees hired on or after July 1, 1998, shall designate a financial institution account into which the State is authorized to deposit the employee's pay. The [comptroller] director of finance may waive the requirements of this section for any state employee upon request by the head of the employing department under policies prescribed by the [comptroller] director of finance. The implementation of this section shall not be subject to negotiation under chapter 89."

SECTION 22. Section 40-83, Hawaii Revised Statutes, is amended to read as follows:

"§40-83 Audit of public school accounts. The [comptroller] director of [general services] finance shall [cause to be examined and audited] examine and audit books of account kept by any public school in connection with school fees and all other moneys collected by these schools. All books of account shall be kept in such manner as shall be prescribed by the [comptroller.] director of finance."

SECTION 23. Section 40-88, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d)  The aggregate principal sum in the fund shall be invested in accordance with the provisions of the Honolulu symphony trust in a manner intended to maximize the rate of return on investment of the fund consistent with the objective of preserving the principal amounts contributed to the fund. In the event of the termination of the Honolulu symphony trust, the principal amount of all contributions made by the State to the State of Hawaii endowment fund shall be distributed to the general fund of the State and any other amounts remaining in the State of Hawaii endowment fund shall be distributed in accordance with the provisions of the Honolulu symphony trust. An annual audit by an independent auditor covering the State of Hawaii endowment fund shall be submitted to the department of [accounting and] general services by the Honolulu symphony."

SECTION 24. Section 51D-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a)  There is created in the treasury of the State a special fund to be known as the transit capital development fund, into which shall be deposited each year and from time to time, moneys as shall be appropriated by the legislature. All interest earned or accrued on moneys deposited in the transit fund shall become part of the transit fund. The director of finance shall administer the transit fund and shall [direct the comptroller to] expend available moneys from the transit fund as provided by a development agreement between the executive branch of a county and the governor, subject to the disapproval of the legislature pursuant to section 51D-5."

SECTION 25. Section 231-1, Hawaii Revised Statutes, is amended by deleting the definition "comptroller."

[""Comptroller" means the comptroller of the State."]

SECTION 26. Section 231-54, Hawaii Revised Statutes, is amended to read as follows:

"[[]§231-54[]] Hearings; appeals. At the time a setoff is identified, the debtor shall be notified by the [comptroller, department of accounting and general services,] director of finance of the State's intention to apply the debtor's debt against the refund. The notice shall state that the debtor within thirty days may request a hearing before the claimant agency to contest the setoff. No issues that have been previously litigated shall be considered at the hearing. Appeals from the hearing allowed under this section shall be in accordance with chapter 91."

SECTION 27. Section 248-7, Hawaii Revised Statutes, is amended to read as follows:

"§248-7 Tax payments, how made; caveat. All payments to be made by the state director of finance shall be made upon warrants issued by the state [comptroller.] director of finance. Nothing in this chapter shall be construed as in any way amending or repealing any law authorizing the withholding, by the state director of finance [or the state comptroller], of moneys in the state treasury belonging or due to any county for the payment of principal or interest for state bonds, or any other charges."

SECTION 28. Section 264-16, Hawaii Revised Statutes, is amended as follows:

"[[]§264-16[]] State highway clearing accounts. The director of transportation may with the prior approval of the director of finance [and comptroller] establish the state highway payroll clearing account, employee benefits clearing account, construction administration clearing account, and any other necessary clearing account to effectively account for program costs and appropriations.

The director of transportation may, from time to time, make advances to the clearing accounts from the state highway fund or from any moneys appropriated or otherwise made available to the department. The advances shall be in such amounts as may be required to meet the obligations of the department which are authorized by the legislature.

As soon as practicable after an expenditure from a clearing account, a determination shall be made of the proper fund or appropriation to which the expenditure should be charged. The fund or account from which funds are advanced shall thereupon be reimbursed out of the proper fund or appropriation."

SECTION 29. Section 392-63, Hawaii Revised Statutes, is amended to read as follows:

"[[]§392-63[]] Disbursements from the fund. Expenditures of moneys in the special fund for disability benefits shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of money in their custody. All benefits shall be paid from the fund upon warrants drawn upon the director of finance [by the comptroller] of the State supported by vouchers approved by the director."

SECTION 30. Section 621-9, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a)  Except as provided for in section 802-7, whenever a witness subpoenaed on behalf of the State in a criminal case or on behalf of a defendant at the expense of the State in a criminal case is discharged, the clerk of the court shall issue to [him] the witness under seal of the court, a numbered certificate from a book having a stub with like designations, stating the name of the witness, when and where [he] the witness was summoned or subpoenaed, the date of [his] the witness discharge, the number of miles necessarily traveled from [his] the witness's place of residence to the place of holding court, the number of days' service, and the amount due for transportation and for service. The certificate, when correct, [must] shall be so certified by the public prosecutor or county attorney for witnesses subpoenaed on behalf of the State, and by the public defender for witnesses subpoenaed on behalf of a defendant, but no certificate shall be so certified unless presented to [him] the witness within twelve months after the date of issue. Duly certified witness certificates shall be paid upon vouchers approved by the state director of finance [and warrants drawn by the state comptroller].

(b)  Whenever the presence of a defendant in a criminal case or in a proceeding under chapter 704 or a petitioner in a post conviction proceeding who is outside the judicial circuit is mandated by court order or bench warrant to appear, the cost of airfare, ground transportation, any per diem for both the defendant or petitioner and sufficient law enforcement officers to effect the defendant's or petitioner's return, shall be borne by the State. All such expenses shall be certified by the court or public prosecutor or the attorney general. Duly certified claims for payment shall be paid upon vouchers approved by the state director of finance [and warrants drawn by the state comptroller]. The court may order the nonindigent defendant or petitioner who was returned to the State of Hawaii to reimburse the State for the costs of such extradition or return as specifically described above."

SECTION 31. All references to "comptroller," or like terms, as the case may be in sections 10-13, 11-217, 11-222, 14-31, 25-5, 25-7, 29-16, 36-25, 37-42, 37-77, 40-1, 40-3,40-4, 40-5, 40-6, 40-10, 40-12, 40-13, 40-35, 40-39, 40-51, 40-52, 40-54, 40-55, 40-56, 40-57, 40-57.5, 40-57.6, 40-58, 40-59, 40-60, 40-61, 40-66, 40-67, 40-68, 40-81, 40-84, 40-85, 40-89, 40-90, 40-91, 46-42, 47-18, 54-26, 76-52, 78-7, 78-23, 78-10, 78-11, 78-12, 78-15, 79-1, 79-7, 82-1.5, 87-6, 87-23.6, 88-2, 88-14, 88-92, 88-125, 103-10, 103-11, 103D-309, 103D-320, 103D-328, 104-25, 142-19, 142-22, 142-23, 142-23.1, 142-98, 166-10, 168-5, 183-35, 201-4, 201G-21, 231-23, 261-7.6, 264-30, 302-1146, 306-10, 310-5, 311-6, 312-3.7, 312-4.5, 335-4, 339K-4, 352-20, 353B-4, 355-5, 355D-5, 363-11, 367-5, 382-3, 383-62, 383-123, 393-43, 431:7-203, 560:3-914, 560:3-1210, 571-87, 582-4, 653-6, and 802-5, Hawaii Revised Statutes, shall be amended to "director of finance", or like terms, as the case may be, as the context requires.

SECTION 32. All references to "comptroller," or like terms, as the case may be, in sections 1-28.5, 6E-33, 8-5, 9-5, 14-22, 26-2, 29-15.5, 29-24, 30-3, 40-8, 40-31, 40-92, 40-93, 40-94, 40-95, 40-96, 41D-1, 41D-2, 41D-3, 41-D-4, 41D-6, 41D-7, 41D-8, 41D-8.5, 87-29, 92-31, 94-3, 94-4, 103-8.5, 103D-102, 103D-201, 103D-204, 105-2, 105-6, 105-9, 105-10, 105-11, 107-1, 107-1.5, 107-2, 107-11, 110-1, 110-2, 110-3, 172-7, 172-8, 172-9, 172-13, 201-62.5, 201-102, 206E-3, 273-1, 273-11, 302A-1506, 322-21, 322-22, 322-23, 322-25, 322-26, 322-27, 322-28, 322-29, 322-30, 322-31, 322-32, 322-33, 322-35, 353-29, 363-3, and 560:3-1214, Hawaii Revised Statutes, shall be amended to "director of general services," or like terms, as the case may be, as the context requires.

SECTION 33. All officers and employees whose functions are transferred to the department of budget and finance by this Act shall be transferred with their current functions and shall continue to perform their regular duties upon such transfer, subject to the state personnel laws and this Act.

No officer or employee of the state having civil service tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act; provided that subsequent changes in status after the transfer may be made pursuant to applicable civil service and compensation laws.

SECTION 34. All rules, policies, procedures, guidelines, and other material adopted or developed heretofore by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes relating to accounting shall remain in full force and effect until amended or repealed by the department of budget and finance pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of accounting and general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of budget and finance or director of finance as appropriate.

SECTION 35. All records, equipment, files, supplies, contracts, books, papers, documents, maps, authorizations, and other property heretofore made, used, acquired, or held in conjunction with functions and activities transferred by this Act shall be transferred with the functions and activities to which they relate to the department of budget and finance.

SECTION 36. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor is authorized and empowered to modify the strict provisions of this Act, but shall promptly report any such modifications with reasons therefore to the legislature at its next session thereafter for review by the legislature.

SECTION 37. If any provision of this Act, or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision and application, and to this end the provisions of this Act are severable.

SECTION 38. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 39. This Act shall take effect on July 1, 2002.