Provide for operating and capital improvement appropriations and authorizations for agencies in the Executive Branch for the fiscal biennium 2005-2007.

A BILL FOR AN ACT

SECTION 1. SHORT TITLE. This Act shall be known and may be cited as the General Appropriations Act of 2005.

SECTION 2. DEFINITIONS. Unless otherwise clear from the context, as used in this Act:

SECTION 3. 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, 2005, and ending June 30, 2007. 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 fiscal year, except as provided elsewhere in this Act, or as provided by general law.

SECTION 4. Provided that of the general fund appropriation for agricultural resource management (AGR 141), the sum of $240,400 for fiscal year 2005-2006 and the sum of $240,400 for fiscal year 2006-2007 shall be deposited into the irrigation system revolving fund to be expended for purposes of the fund.

SECTION 5. Provided that of the general fund appropriation for agribusiness development (AGR 161), the sum of $140,558 for fiscal year 2005-2006 and the sum of $140,558 for fiscal year 2006-2007 shall be deposited into the Hawaii agricultural development revolving fund to be expended for purposes of the fund.

SECTION 6. Provided that of the special fund appropriation for airports administration (TRN 195), the sum of $70,133,999 for fiscal year 2005-2006 and the sum of $70,129,033 for fiscal year 2006-2007 shall be expended for the following purposes:

Purpose FY 2005-2006 FY 2006-2007

Interest and principal on

general obligation bonds $ 11,871 $ 11,442

Interest and principal on

revenue bonds $70,122,129 $70,117,591;

and provided further that any funds not expended for these purposes shall be lapsed to the airport special fund.

SECTION 7. Provided that of the special fund appropriation for harbors administration (TRN 395), the sum of $24,499,024 for fiscal year 2005-2006 and the sum of $24,539,731 for fiscal year 2006-2007 shall be expended for the following purposes:

Purpose FY 2005-2006 FY 2006-2007

Interest and principal on

general obligation bonds $ 25,017 $ 24,763

Interest and principal on

revenue bonds $24,474,007 $24,514,969;

and provided further that any funds not expended for these purposes shall be lapsed to the harbor special fund.

SECTION 8. Provided that of the special fund appropriation for highways administration (TRN 595), the sum of $52,912,055 for fiscal year 2005-2006 and the sum of $55,064,643 for fiscal year 2006-2007 shall be expended for the following purposes:

Purpose FY 2005-2006 FY 2006-2007

Interest and principal on

general obligation bonds $20,218,205 $17,686,416

Interest and principal on

revenue bonds $32,693,851 $37,378,228;

and provided further that any funds not expended for this purpose shall be lapsed to the state highway fund.

SECTION 9. Provided that of the special fund appropriation for health resources administration (HTH 595), the sum of $12,374,543 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of $12,374,543 or so much thereof as may be necessary for fiscal year 2006-2007, shall be deposited into the emergency and budget reserve fund.

SECTION 10. Provided that of the special fund appropriation for health resources administration (HTH 595), the sum of $17,512,184 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of $17,512,184 or so much thereof as may be necessary for fiscal year 2006-2007, shall be expended by the department of health for purposes specified in section 328L-4, Hawaii Revised Statutes. A sum not to exceed $5,051,000 of the special fund appropriation for fiscal year 2005-2006, and a sum not to exceed $5,051,000 of the special fund appropriation for fiscal year 2006-2007, shall be transferred to the department of human services to be expended for the children's health insurance program, pursuant to section 328L-4, Hawaii Revised Statutes; provided that the amount of moneys transferred shall not exceed the amount of expenditures anticipated for each fiscal year by the children's health insurance program.

SECTION 11. Provided that of the special fund appropriation for health resources administration (HTH 595), the sum of $6,313,542 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of $6,313,542 or so much thereof as may be necessary for fiscal year 2006-2007, shall be deposited into the Hawaii tobacco prevention and control trust fund.

SECTION 12. Provided that of the special fund appropriation for health resources administration (HTH 595), the sum of $14,142,334 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of $14,142,334 or so much thereof as may be necessary for fiscal year 2006-2007, shall be deposited into the university revenue-undertakings fund.

SECTION 13. Provided that of the general fund appropriation for emergency medical services (HTH 730), the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2006-2007, shall be expended by the department of health for the provision of emergency aeromedical helicopter services for the county of Maui, provided that no funds shall be expended under this part unless the county of Maui provides matching funds of up to $1,000,000 for fiscal year 2005-2006 and up to $1,000,000 for fiscal year 2006-2007 for the purpose for which these sums are appropriated.

SECTION 14. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sum of $161,603,234 for fiscal year 2005-2006 and the sum of $169,613,231 for fiscal year 2006-2007 shall be used to pay for health and other benefits provided by the Hawaii employer-union health benefits trust fund for department of education employees and participating employees of charter schools and shall be transferred to the program planning, analysis and budgeting program (BUF 101) of the department of budget and finance for this purpose; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 15. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sum of $206,116,917 for fiscal year 2005-2006 and the sum of $231,480,873 for fiscal year 2006-2007 shall be used to pay for debt service on general obligation bonds issued for department of education projects and shall be transferred to the financial administration program (BUF 115) of the department of budget and finance for this purpose; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 16. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the sum of $128,039,679 for fiscal year 2005-2006 and the sum of $129,934,666 for fiscal year 2006-2007 shall be used to pay for pension accumulation contributions for department of education employees and participating employees of charter schools; provided further that the sum of $72,770,756 for fiscal year 2005-2006 and the sum of $76,103,050 for fiscal year 2006-2007 shall be used to pay for social security/Medicare contributions for department of education employees and participating employees of charter schools; provided further that the amounts shall be transferred to the retirement program (BUF 141) of the department of budget and finance for that purpose; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 17. Provided that of the general fund appropriation for school-based budgeting (EDN 100), the following fiscal year 2006-2007 cost items shall be considered non-recurring cost items:

(1) Equipment for new facilities-regular 2,775,091

instruction

(2) Equipment for new facilities-special 27,338

education

(3) Equipment for new facilities-school 138,456

administration

(4) Equipment for new facilities-school 94,135

libraries

(5) Equipment for new facilities-health rooms 9,640;

and provided further that the aforementioned cost items shall be reduced by the appropriate amount at the beginning of fiscal biennium 2007-2009.

SECTION 18. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $57,222,899 for fiscal year 2005-2006 and the sum of $62,559,248 for fiscal year 2006-2007 shall be used to pay for health and other benefits provided by the Hawaii employer-union health benefits trust fund 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; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 19. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $73,800,011 for fiscal year 2005-006 and the sum of $83,010,455 for fiscal year 2006-2007 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; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 20. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $53,788,061 for fiscal year 2005-2006 and the sum of $55,463,451 for fiscal year 2006-2007 shall be used to pay for pension accumulation contributions for university of Hawaii employees; provided further that the sum of $29,284,904 for fiscal year 2005-2006 and the sum of $30,625,909 for fiscal year 2006-2007 shall be used to pay for social security/Medicare contributions for university of Hawaii employees; provided further that the amounts shall be transferred to the retirement program (BUF 141) of the department of budget and finance for that purpose; and provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 21. Provided that of the general fund appropriation for amelioration of physical disasters (DEF 110), the sum of $500,000 for fiscal year 2005-2006 and the sum of $500,000 for fiscal year 2006-2007 shall be expended for relief from major disasters pursuant to chapter 127-11, Hawaii Revised Statutes.

SECTION 22. Provided that of the general fund appropriation for the office of the governor (GOV 100), the sum of $15,000 in fiscal year 2005-2006 and the sum of $15,000 in fiscal year 2006-2007 shall be used for the governor's "contingent fund" pursuant to section 37-71(f) of the Hawaii Revised Statutes; and 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 23. 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; and provided further 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 24. Any law to the contrary notwithstanding, the appropriations under Act 289, Session Laws of Hawaii 1993, section 127, as amended and renumbered by Act 252, Session Laws of Hawaii 1994, section 5, in the amounts indicated or balances thereof, unallotted, allotted, encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-41 $2,121,000 E"

SECTION 25. Any law to the contrary notwithstanding, the appropriations under Act 218, Session Laws of Hawaii 1995, section 99, as amended and renumbered by Act 287, Session Laws of Hawaii 1996, section 5, in the amounts indicated or balances thereof, unallotted, allotted, encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-26 $3,859,000 E

C-26 640,000 N"

SECTION 26. Any law to the contrary notwithstanding, the appropriations under Act 200, Session Laws of Hawaii 2003, section 77, as amended and renumbered by Act 41, Session Laws of Hawaii 2004, section 5, in the amounts indicated or balances thereof, unallotted, allotted, encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-0.03 $ 1,900,000 N

C-55 22,500,000 E

C-71 7,500,000 E

C-71 30,000,000 N

H-6.02 9,000,000 E

H-6.03 1,000,000 E"

SECTION 27. Any law to the contrary notwithstanding, all appropriations which are denoted as necessary to qualify for federal aid financing and/or reimbursements under Act 289, Session Laws of Hawaii 1993, section 127, as amended and renumbered by Act 252, Session Laws of Hawaii 1994, section 5, including any balances unallotted, allotted, or encumbered, shall lapse on June 30, 2006.

SECTION 28. GOVERNOR'S DISCRETIONARY POWERS. When it is deemed in the public interest of the State, the governor, in the governor's 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 29. 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 the governor's 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 30. 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 be 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, 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 the governor's 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 31. 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 the governor's 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 32. 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 on 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 sections 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 33. 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, or other appropriate special funds 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 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 34. In the event that the authorized appropriations specified for a capital improvement project listed in this Act are 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 Act 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; and provided further that such supplemental allotments shall not impair the ability of the fund to meet the purposes for which it was established.

SECTION 35. In the event that the authorized appropriations specified for a capital improvement project listed in this Act are insufficient and where the source of funding is designated as airport passenger facility charge funds, the governor may make supplemental allotments from the airport revenue fund or airport revenue bond funds or transfer unrequired balances from other unlapsed projects in this Act or prior appropriation acts which authorized the use of airport passenger facility charge funds; provided further 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; and provided further that the governor, in the governor's discretion, is authorized to increase the passenger facility charge fund authorization ceiling for the program to accommodate the expenditure of such funds.

SECTION 36. 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 by this Act or any other prior or future act which has not lapsed; provided that the total expenditure of funds for all cost elements shall not exceed the total appropriations for that project.

SECTION 37. 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, 2008, as provided in section 39 of this Act.

SECTION 38. 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; provided further that such supplemental allotments from the project adjustment fund shall not be used to increase the scope of the project.

SECTION 39. 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 2005-2007 which are unencumbered as of June 30, 2008 shall lapse as of that date; provided further that this lapsing date shall not apply to non-general fund appropriations for projects described in section 23 of this Act where such appropriations have been deemed necessary to qualify for federal aid financing and reimbursement.

SECTION 40. Where it has been determined that changed conditions, such as a 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 41. In releasing funds for capital improvement projects, the governor shall consider 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 legislative intent and the objectives of the user agency, its programs, and 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 42. 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 advantageous to do so.

SECTION 43. 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 44. The governor may authorize the expenditure of funds for capital improvement projects not previously authorized in this Act to cope with the effects of natural disasters or unforeseen emergencies, provided that the effects of the natural disaster or unforeseen emergencies create an urgent need to pursue a course of action which is in the best interest of the State; and 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 45. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances 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 natural disasters or other unforeseen emergencies; provided that the effects of such natural disaster or emergencies create an urgent need to pursue a course of action which is in the best interest of the State; and provided further that the use of such funds does not conflict with general law.

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. 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, 2005 to June 30, 2007. 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 48. 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 49. 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 50. 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 51. The governor may approve the expenditure of federal funds which are in excess of levels authorized by the legislature; 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 52. Where an agency is authorized 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 the undertaking comply with applicable State constitutional and statutory requirements.

SECTION 53. 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 54. 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 funds.

SECTION 55. 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 projected.

SECTION 56. Unless otherwise provided in this Act, the governor is authorized to transfer operating funds between appropriations within the same fund, within an expending agency, for operating purposes.

SECTION 57. 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 58. 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 to the internal post audit program (AGS 104), when it is determined by such agencies that it is advantageous to do so.

SECTION 59. 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 60. 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 61. With the approval of the governor, 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 62. With the approval of the governor, the department of health may transfer to the department of human services funds appropriated to the department of health for the care and treatment of patients, whenever the department of human services can utilize such funds to match federal funds to finance the cost of outpatient, hospital, or skilled nursing home care of indigents or medical indigents.

SECTION 63. 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; provided that 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 64. The governor may authorize the transfer of positions and funds between the department of health and the department of education to address Felix Consent Decree requirements; provided that any transfers shall be based on the transfer of responsibility for Felix clients and/or treatments between the department of health and the department of education.

SECTION 65. Provided that of the appropriation for each principal state department as defined by section 26-4, Hawaii Revised Statutes, the sum of $2,500 in fiscal year 2005-2006 and the sum of $2,500 in fiscal year 2006-2007 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 head of such department which is known as its director, chairperson, comptroller, adjutant-general, superintendent, state librarian, president, or attorney general.

SECTION 66. Provided that of the general fund appropriation for financial administration (BUF 115), the sum of $4,000 for fiscal year 2005-2006 and the sum of $4,000 for fiscal year 2006-2007 may be used to establish a separate protocol account to be expended at the discretion of the director of finance for the promotion and improvement of state bond ratings and sales.

SECTION 67. Provided that of the special fund appropriation for spectator events and shows - Aloha Stadium (AGS 889), the sum of $2,500 for fiscal year 2005-2006 and the sum of $2,500 for fiscal year 2006-2007 may be expended at the discretion of the stadium manager for promotion and other stadium-related purposes.

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. Provided that of the appropriations authorized for executive programs in part II of this Act for fiscal year 2005-2006 and fiscal year 2006-2007, settlements and judgments approved by the legislature in ATG-1(05), the Claims Bill, shall be funded within each program's departmental allocation for the respective fiscal year.

SECTION 71. Provided that, in the event that the amount of settlements and judgments approved by the legislature in ATG-1(05), the Claims Bill, exceeds program allocations for fiscal year 2005-2006 or fiscal year 2006-2007, as applicable, for the purposes of meeting such obligations:

SECTION 72. The director of finance is authorized to expend general fund, special fund, and revolving fund savings or balances determined to be available from authorized general fund, special fund, and revolving fund program appropriations, up to an aggregate total of $20,000,000 for fiscal year 2005-2006 and $20,000,000 for fiscal year 2006-2007, 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 telecommunications equipment; and provided further that designated expending agencies (including the department of education and the university of Hawaii) for municipal lease payments and for depreciable assets, including, but not limited to, automobiles, computers, printers, and telecommunications equipment authorized in this Act may delegate to the director of finance the implementation of such acquisitions when it is determined by all involved agencies that it is advantageous to do so.

SECTION 73. 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 74. 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 75. Material to be repealed is bracketed and stricken. New material in prior enacted laws is underscored. SECTION 76. EFFECTIVE DATE. This Act shall take effect on July 1, 2005.