Report Title:

Budget Restrictions or Withholdings; Public Hearing Required

Description:

Requires that the governor conduct a public hearing on any proposed restriction or withholding of funds budgeted and appropriated by the legislature, prior to implementing the restriction or withholding. Requires all allotment estimates to include all funds lawfully budgeted and appropriated. (SD1)

THE SENATE

S.B. NO.

631

TWENTY-THIRD LEGISLATURE, 2005

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the budget.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§37- Restricting or withholding funds lawfully budgeted and appropriated; public hearing required. (a) Prior to the imposition of any restriction or withholding of any funds under section 37-36 or section 37-37, including any funds that are lawfully budgeted and appropriated by the legislature that are not contained in any allotment plan or request, the governor or the director of finance shall conduct a public hearing on the proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds and the reasons therefor.

(b) The governor or director of finance shall comply with the public notice requirements of section 1-28.5 and shall:

(1) Give at least thirty days' notice for a public hearing. The notice shall include:

(A) A statement of the topic of the proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds and the reasons therefor;

(B) A statement that a copy of the proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds and the reasons therefor, will be mailed to any interested person who requests a copy, pays the required fees for the copy and the postage, if any, together with a description of where and how the requests may be made; and

(C) The date, time, and place where the public hearing will be held and where interested persons may be heard on the proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds.

The notice shall be mailed to all persons who have made a timely written request of the governor or the director of finance for advance notice of its proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds and the reasons therefor, or given at least once statewide for state agencies and in the county for county agencies. Proposed restrictions, withholdings, or other actions that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds and the reasons therefor shall also be posted on the governor's website; and

(2) Afford all interested persons opportunity to submit data, views, or arguments, orally or in writing. The governor or the director of finance shall fully consider all written and oral submissions respecting the proposed restriction, withholding, or other action that will result in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds. The governor or the director of finance may make a decision at the public hearing or announce then the date when the governor or the director of finance intends to make a decision. Upon the restriction, withholding, or other action that results in the nonexpenditure or nonallotment of lawfully budgeted and appropriated funds, the governor or the director of finance, if requested to do so by an interested person, shall issue a concise statement of the principal reasons for and against its determination."

SECTION 2. Section 37-34, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) No appropriation to which the allotment system is applicable shall become available to any department or establishment for expenditure during any allotment period until the department or establishment submits an estimate to the director of finance, at whatever time prior to the beginning of the allotment period and in whatever form as the director may prescribe, of the amount required to carry on the work of the department or establishment during that period and until the estimate is approved, increased, or decreased by the director and funds are allotted pursuant to section 37-35[.]; provided that all allotment estimates required under this section shall include all funds lawfully budgeted and appropriated to the department or agency to fully fund the programs of the department or agency as contained in the General Appropriations Act, the Supplemental Appropriations Act, or any other appropriation act by the legislature, as the case may be, for the respective fiscal year."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.