HB3035

SECTION 1. Section 37-40, Hawaii Revised Statutes is amended to read as follows:

"§37-40 Exceptions; trust funds. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from trust funds may be made by any department or establishment without appropriation or allotment; provided that no expenditure shall be made from and no obligation shall be incurred against any trust fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended[.]; provided that obligations in excess of the amount standing to the credit of a department of Hawaiian home lands trust fund or moneys of the Hawaii housing finance and development corporation may be incurred when the director of finance determines that:

(1) Moneys to pay the obligation made in excess of the amount standing to the credit of the trust fund are expected to be received by the trust fund within a reasonable time period; or

(2) Moneys to pay the obligation made in excess of the amount standing to the credit of the Hawaii housing finance and development corporation are expected to be received by the corporation within a reasonable time period; and

(3) With the approval of the governor, such action is in the best interests of the State and will not impede or hamper the financial obligations of the State.

The director of finance may impose such conditions as the director believes are reasonably necessary.

Nothing in sections 37-31 to 37-41 shall require any trust fund established pursuant to law be reappropriated annually."

SECTION 2. Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Contracts awarded pursuant to section 103D-302, 103D-303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that if the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts, that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi-year contract; provided further that the administrator of the state procurement office shall attest in writing to any recommendation or solicitations. This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order[.], or to any contract which encumbrance is approved under section 37-40."

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.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	3035
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII