STAND

STAND. COM. REP. 3087

Honolulu, Hawaii

, 2004

RE: H.B. No. 2743

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2743, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO NON-GENERAL FUNDS,"

begs leave to report as follows:

The purpose of this measure is to transfer the excess balances contained in various special and revolving funds to the general fund.

In addition, the measure also:

(1) Reduces the balance ceiling for the Tobacco Enforcement Special Fund and the Bureau of Conveyances Special Fund from $1,000,000 to $500,000, and $500,000 to $250,000, respectively; and

(2) Establishes a balance ceiling for the State Parking Revolving Fund of $500,000, and requires that all moneys in excess of that amount that exist in the fund on June 30 of each year be deposited into the general fund.

Your Committee finds that there are other special and revolving funds that hold excess balances or that possess a balance ceiling that is higher than what is actually needed to effectuate the special or revolving fund's intended purpose.

In light of this finding, your Committee has amended the measure by:

(1) Deleting the sections that transfer excess balances from the:

(A) Agriculture Loan Reserve Fund;

(B) Medicaid Investigations Recovery Fund;

(D) Human Resources Development Special Fund;

(E) Environmental Management Special Fund;

(F) Environmental Response Revolving Fund;

(G) Mental Health and Substance Abuse Special Fund; and

(H) Controlled Substances Registration Revolving Fund;

(2) Deleting the section that amended the balance ceiling for moneys in the Tobacco Enforcement Special Fund;

(3) Changing the amounts of funding the Director of Finance is authorized to transfer to the general fund as follows:

(A) From $300,000 to $296,000 from the State Identification Revolving Fund;

(B) From $400,000 to $250,000 from the Foreign Trade Zones Special Fund; and

(4) Adding sections that authorize the transfer of excess balances from the following special or revolving funds:

(A) Animal Quarantine Special Fund - $600,000;

(B) State Motor Pool Revolving Fund - $900,000;

(D) Aloha Stadium Special Fund - $600,000;

(E) Tobacco Enforcement Special Fund - $500,000;

(F) Aloha Tower Fund - $750,000;

(G) Dwelling Unit Revolving Fund - $10,000,000;

(H) Convention Center Enterprise Special Fund - $500,000;

(I) Hawaii Capital Loan Revolving Fund - $1,500,000;

(J) Hawaii Strategic Development Corporation Revolving Fund - $200,000;

(K) Compliance Resolution Fund - $12,100,000;

(L) State Health Planning and Development Special Fund - $100,000;

(M) Driver Education Special Fund - $500,000;

(N) Probation Services Special Fund - $350,000;

(O) Natural Areas Reserve Fund - $2,000,000;

(P) Special Land and Development Fund - $3,000,000;

(Q) State Highway Fund - $17,000,000; and

(R) Public Utilities Commission Special Fund - $500,000;

(5) Adding an amendment to section 321-27(c), Hawaii Revised Statutes, to lower the balance ceiling, from $300,000 to $150,000 for moneys in the Environmental Health Education Fund, that triggers an automatic transfer to the general fund at the end of each fiscal year;

(6) Adding a section that repeals section 37-53, Hawaii Revised Statutes, relating to the Governor and Director of Finance's authority to transfer, at any time, the excess balances of special funds to the general fund; and

(7) Deleting the balance ceiling for the State Parking Revolving Fund.

Your Committee believes that the amounts withdrawn from the various special and revolving funds will not adversely impact the operations of the programs for which these funds were established.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2743, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2743, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair