Makes an emergency appropriation to reimburse the department of education for premium payments to employees' tax sheltered annuity plans.

A BILL FOR AN ACT

SECTION 1. This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

SECTION 2. The purpose of this Act is to appropriate funds to reimburse the department of education for premium payments made for the department's employees' tax sheltered annuities.

SECTION 3. The department of education's tax sheltered annuity plan third party administrator failed to make premium payments of $2,280,195 to annuity service providers. The department of education arranged payment to annuity service providers in the amount of $2,280,195 using the department's current fiscal year 2005-2006 general fund appropriation. The immediate payment was necessary to protect the department of education's employees' rights and interests. An emergency appropriation is needed for the first year of the biennium, fiscal year 2005-2006, to restore the department of education's general fund operating budget.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,280,195, or so much thereof as may be necessary for fiscal year 2005-2006, to reimburse the department of education for premium payments made for the department's employees tax sheltered annuities.

The sum appropriated shall be expended by the department of education.

SECTION 5. This Act shall take effect upon its approval.