SB200

PART I. GENERAL PROVISIONS

SECTION 1. SHORT TITLE. This Act shall be known and may be cited as the General Appropriations Act of 2007.

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

(a) "Program ID" means the unique identifier for the specific program, and consists of the abbreviation for the organization responsible for carrying out the program, followed by the organization number for the program.

(b) "Expending agency" means the executive department, independent commission, bureau, office, board, or other establishment of the state government (other than the legislature, office of Hawaiian affairs, and judiciary), the political subdivisions of the State, or any quasi‑public institution supported in whole or in part by state funds, which is authorized to expend specified appropriations made by this Act.

Abbreviations where used to denote the expending agency shall mean the following:

AGR Department of Agriculture

AGS Department of Accounting and General Services

ATG Department of the Attorney General

BED Department of Business, Economic Development and

Tourism

BUF Department of Budget and Finance

CCA Department of Commerce and Consumer Affairs

DEF Department of Defense

EDN Department of Education

GOV Office of the Governor

HHL Department of Hawaiian Home Lands

HMS Department of Human Services

HRD Department of Human Resources Development

HTH Department of Health

LBR Department of Labor and Industrial Relations

LNR Department of Land and Natural Resources

LTG Office of the Lieutenant Governor

PSD Department of Public Safety

SUB Subsidies

TAX Department of Taxation

TRN Department of Transportation

UOH University of Hawaii

CCH City and County of Honolulu

COH County of Hawaii

COK County of Kauai

COM County of Maui

(c) "Means of financing" (or "MOF") means the source from which funds are appropriated or authorized to be expended for the programs and projects specified in this Act. All appropriations are followed by letter symbols. Such letter symbols, where used, shall have the following meanings:

A general funds

B special funds

C general obligation bond fund

D general obligation bond fund with debt service cost to

be paid from special funds

E revenue bond funds

J federal aid interstate funds

K federal aid primary funds

L federal aid secondary funds

M federal aid urban funds

N other federal funds

R private contributions

S county funds

T trust funds

U interdepartmental transfers

W revolving funds

X other funds

(d) "Position ceiling" means the maximum number of permanent positions that an expending agency is authorized for a particular program during a specified period or periods, as denoted by an asterisk.

(e) "Capital project number" means the official number of the capital project, as assigned by the responsible organization.

PART II. PROGRAM APPROPRIATIONS

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, 2007 and ending June 30, 2009. 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.

PART III. PROGRAM APPROPRIATION PROVISIONS

TRANSPORTATION

SECTION 4. Provided that of the special fund appropriations for the airports division (TRN 102‑TRN 195), the following sums specified for special repair and maintenance projects in fiscal biennium 2007‑2009 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2007-2008 FY 2008-2009

TRN 102 $4,230,000 $5,217,500

TRN 104 $1,800,000 $1,800,000

TRN 111 $1,076,750 $ 815,000

TRN 114 $1,596,750 $1,730,000

TRN 116 $ 110,000 $ 122,500

TRN 118 $ 100,000 $ 100,000

TRN 131 $1,008,000 $ 483,000

TRN 133 $ 260,000 $ 210,000

TRN 135 $ 520,000 $ 678,000

TRN 141 $ 860,000 $ 500,000

TRN 143 $ 125,000 $ 100,000

TRN 151 $ 140,000 $ 345,000

TRN 161 $5,765,000 $5,765,000

TRN 163 $ 25,000 $ 25,000

TRN 195 $ 750,000 $ 750,000;

provided further that any unexpended funds shall lapse to the airport special fund.

SECTION 5. Provided that of the special fund appropriation for airports administration (TRN 195), the sum of $20,000,000 for fiscal year 2007‑2008 shall be expended for routine repair and maintenance purposes; provided further that any unexpended funds shall lapse to the airport special fund.

SECTION 6. Provided that of the special fund appropriation for airports administration (TRN 195), the sum of $59,476,905 for fiscal year 2007‑2008 and the sum of $70,726,675 for fiscal year 2008‑2009 shall be expended for the following purposes:

Purpose FY 2007-2008 FY 2008-2009

Interest and principal on

general obligation bonds $ 11,442 $ 11,442

Interest and principal on

revenue bonds $59,465,463 $70,715,233;

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

SECTION 7. Provided that of the special fund appropriations for the harbors division (TRN 301‑TRN 395), the following sums specified for special repair and maintenance projects in fiscal biennium 2007‑2009 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2007-2008 FY 2008-2009

TRN 301 $5,594,000 $5,594,000

TRN 303 $ 331,000 $ 331,000

TRN 311 $ 846,000 $ 846,000

TRN 313 $ 850,000 $ 930,000

TRN 331 $1,395,000 $1,255,000

TRN 341 $ 368,400 $ 368,400

TRN 351 $ 238,000 $ 238,000

TRN 361 $ 850,000 $ 830,000

TRN 363 $ 393,000 $ 393,000;

provided further that any unexpended funds shall lapse to the harbor special fund.

SECTION 8. Provided that of the special fund appropriations for the harbors division (TRN 301‑395), the following sums specified for security in fiscal biennium 2007‑2009 shall be expended for security purposes only as follows:

Program I.D. FY 2007-2008 FY 2008-2009

TRN 301 $2,197,508 $2,197,508

TRN 303 $ 530,004 $ 530,004

TRN 311 $ 434,892 $ 454,662

TRN 313 $ 428,633 $ 448,205

TRN 331 $ 276,000 $ 276,000

TRN 361 $ 381,375 $ 399,798

TRN 395 $1,035,000 $1,035,000;

provided further that any unexpended funds shall lapse to the harbor special fund.

SECTION 9. Provided that of the special fund appropriation for harbors administration (TRN 395), the sum of $27,084,579 for fiscal year 2007‑2008 and the sum of $25,541,924 for fiscal year 2008‑2009 shall be expended for the following purposes:

Purpose FY 2007-2008 FY 2008-2009

Interest and principal on

general obligation bonds $ 1,720,310 $ 2,140,680

Interest and principal on

revenue bonds $25,364,269 $23,401,244;

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

SECTION 10. Provided that of the special fund appropriation for harbors administration (TRN 395), the sum of $250,000 for fiscal year 2007‑2008 and the sum of $250,000 for fiscal year 2008‑2009 shall be expended for the effects of natural disasters or unforeseen emergencies; provided that the effects of the natural disasters 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 any unexpended funds shall lapse to the harbor special fund.

SECTION 11. Provided that of the special fund appropriation for harbors administration (TRN 395), the sum of $1,000,000 for fiscal year 2007‑2008 and the sum of $1,000,000 for fiscal year 2008‑2009 shall be expended for the effects of raised security levels of MARSEC II (Maritime Security) or higher, as determined by the Captain of the Port (U.S. Coast Guard) or the governor; and provided further that any unexpended funds shall lapse to the harbor special fund.

SECTION 12. Provided that of the special fund appropriations for the highways division (TRN 501‑TRN 561), the following sums specified for special repair and maintenance projects in fiscal biennium 2007‑2009 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2007-2008 FY 2008-2009

TRN 501 $14,760,486 $18,668,837

TRN 511 $12,953,404 $10,876,404

TRN 531 $11,096,508 $11,096,508

TRN 541 $ 2,560,000 $ 2,575,000

TRN 551 $ 515,000 $ 515,000

TRN 561 $ 8,021,464 $ 7,216,134

provided further that any unexpended funds shall lapse to the state highway fund.

SECTION 13. Provided that of the special fund appropriation for highways administration (TRN 595), the sum of $52,659,073 for fiscal year 2007‑2008 and the sum of $51,528,823 for fiscal year 2008‑2009 shall be expended for the following purposes:

Purpose FY 2007-2008 FY 2008-2009

Interest and principal on

general obligation bonds $16,897,126 $13,081,894

Interest and principal on

revenue bonds $35,761,947 $38,446,929;

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

HEALTH

SECTION 14. Provided that of the general fund appropriation for the Hawaii health systems corporation (HTH 210), the sum of $1,500,000 in fiscal year 2007‑2008 and the sum of $1,500,000 in fiscal year 2008‑2009 shall be used for the transitioning of Kahuku Hospital into the Hawaii Health Systems Corporation; provided further that the funds shall not be expended for any other purpose; and provided further that any unexpended funds shall lapse to the general fund in the event Kahuku Hospital does not become a part of the Hawaii health systems corporation.

SECTION 15. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $12,938,600, or so much thereof as may be necessary for fiscal year 2007‑2008, and the sum of $12,938,600, or so much thereof as may be necessary for fiscal year 2008‑2009, shall be deposited into the emergency and budget reserve fund.

SECTION 16. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $19,520,369, or so much thereof as may be necessary for fiscal year 2007‑2008, and the sum of $19,520,369, or so much thereof as may be necessary for fiscal year 2008‑2009, shall be expended by the department of health for purposes specified in section 328L‑4, Hawaii Revised Statutes; provided further that a sum not to exceed $5,281,061 of the special fund appropriation for fiscal year 2007‑2008, and a sum not to exceed $5,281,061 of the special fund appropriation for fiscal year 2008‑2009, 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; and provided further 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 17. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $6,601,326, or so much thereof as may be necessary for fiscal year 2007‑2008, and the sum of $6,601,326, or so much thereof as may be necessary for fiscal year 2008‑2009, shall be deposited into the Hawaii tobacco prevention and control trust fund.

SECTION 18. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $14,786,971, or so much thereof as may be necessary for fiscal year 2007‑2008, and the sum of $14,786,971, or so much thereof as may be necessary for fiscal year 2008‑2009, shall be deposited into the university revenue‑undertakings fund.

EDUCATION

SECTION 19. Provided that of the general fund appropriation for school‑based budgeting (EDN 100), the sum of $167,498,112 for fiscal year 2007‑2008 and the sum of $177,398,618 for fiscal year 2008‑2009 shall be used to pay for health and other benefits provided by the Hawaii employer‑union health benefits trust fund or the voluntary employees' beneficiary association trust (VEBA) for department of education employees and participating employees of charter schools and shall be transferred to the departmental administration and budget division program (BUF 101) of the department of budget and finance for this purpose; 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 school‑based budgeting (EDN 100), the sum of $228,027,849 for fiscal year 2007‑2008 and the sum of $241,072,695 for fiscal year 2008‑2009 shall be used to pay for the 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 21. Provided that of the general fund appropriation for school‑based budgeting (EDN 100), the sum of $140,089,459 for fiscal year 2007‑2008 and the sum of $141,464,436 for fiscal year 2008‑2009 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 $77,798,468 for fiscal year 2007‑2008 and the sum of $78,560,893 for fiscal year 2008‑2009 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; provided further that the funds shall be transferred no later than July 16 of each respective fiscal year.

SECTION 22. Provided that of the general fund appropriation for school‑based budgeting (EDN 100), the sum of $26,098,328 for fiscal year 2007‑2008 and the sum of $26,538,589 for fiscal year 2008‑2009, which represent the additional amounts provided for school‑based budgeting (EDN 100) in fiscal year 2007‑2008 and fiscal year 2008‑2009, shall be expended for school level purposes.

SECTION 23. Provided that of the general fund appropriation for comprehensive student support services (EDN 150), the sum of $4,986,405 for fiscal year 2007‑2008 and the sum of $4,986,105 for fiscal year 2008‑2009, which represent the additional amounts provided for comprehensive student support services (EDN 150) in fiscal year 2007‑2008 and fiscal year 2008‑2009, shall be expended for school level purposes.

SECTION 24. Provided that of the general fund appropriation for school support (EDN 400), the sum of $18,432,402 for fiscal year 2007‑2008 and the sum of $23,869,340 for fiscal year 2008‑2009, which represent the additional amounts provided for school support (EDN 400) in fiscal year 2007‑2008 and fiscal year 2008‑2009, shall be expended for school level purposes.

SECTION 25. Provided that of the general fund appropriation for charter schools (EDN 600), the sum of $4,179,847 for fiscal year 2007‑2008 and the sum of $4,179,847 for fiscal year 2008‑2009, which represent the additional amounts provided for charter schools (EDN 600) in fiscal year 2007‑2008 and fiscal year 2008‑2009, shall be expended for school level purposes.

HIGHER EDUCATION

SECTION 26. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $60,826,187 for fiscal year 2007‑2008 and the sum of $65,107,996 for fiscal year 2008‑2009 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 shall be transferred to the departmental administration and budget division 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 27. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $84,392,802 for fiscal year 2007‑2008 and the sum of $89,220,682 for fiscal year 2008‑2009 shall be used to pay for debt service on general obligation bonds issued for university of Hawaii projects and shall be 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 28. Provided that of the general fund appropriation for systemwide support (UOH 900), the sum of $60,746,771 for fiscal year 2007‑2008 and the sum of $64,473,642 for fiscal year 2008‑2009 shall be used to pay for pension accumulation contributions for university of Hawaii employees; provided further that the sum of $32,468,803 for fiscal year 2007‑2008 and the sum of $34,904,925 for fiscal year 2008‑2009 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.

PUBLIC SAFETY

SECTION 29. Provided that of the general fund appropriation for amelioration of physical disasters (DEF 110), the sum of $1,000,000 for fiscal year 2007‑2008 and the sum of $1,000,000 for fiscal year 2008‑2009 shall be expended for relief from major disasters pursuant to section 127‑11, Hawaii Revised Statutes; provided further that any funds not expended for this purpose shall lapse to the general fund.

GOVERNMENT-WIDE SUPPORT

SECTION 30. Provided that of the general fund appropriation for the office of the governor (GOV 100), the sum of $15,000 in fiscal year 2007‑2008 and the sum of $15,000 in fiscal year 2008‑2009 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.

PART IV. CAPITAL IMPROVEMENT PROJECTS

SECTION 31. 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.)

PART V. CAPITAL IMPROVEMENT PROGRAM PROVISIONS

SECTION 32. Act 178, Session Laws of Hawaii 2005, section 85, as amended by Act 160, Session Laws of Hawaii 2006, section 5, is amended:

(1) By amending Item 98.06 to read:

"[~~X333~~] S333 ENVIRONMENTAL REMEDIATION OF HIGHWAY FACILITIES, OAHU

PLANS, DESIGN, AND CONSTRUCTION FOR ENVIRONMENTAL REMEDIATION MEASURES ON STATE HIGHWAYS AND FACILITIES.

PLANS 998

DESIGN 1

CONSTRUCTION 1

TOTAL FUNDING TRN B 1,000 B"

(2) By amending Item 98.07 to read:

"[~~X334~~] S334 INTERSTATE ROUTE H-1, KINAU STREET OFF-RAMP IMPROVEMENTS NEAR QUEENS MEDICAL CENTER, OAHU

CONSTRUCTION OF A RIGHT TURN LANE FROM THE KINAU STREET OFF-RAMP TO PROVIDE ACCESS ONTO LUSITANA STREET. THIS PROJECT IS DEEMED NECESSARY TO QUALIFY FOR FEDERAL AID FINANCING AND/OR REIMBURSEMENT.

CONSTRUCTION 3,000

TOTAL FUNDING TRN N 1,293 N

R 1,707 R"

(3) By amending Item 98.08 to read:

"SP0602 WAIKALUA AND LILIPUNA ROAD IMPROVEMENTS, OAHU

DESIGN, AND CONSTRUCTION FOR IMPROVEMENTS TO WAIKALUA AND LILIPUNA ROAD TO INCLUDE SIDEWALKS AND OTHER IMPROVEMENTS FOR PEDESTRIAN SAFETY. FEDERAL FUNDS ARE FROM THE SAFE ROUTES TO SCHOOL (SRTS) PROGRAM. THIS PROJECT IS DEEMED NECESSARY FOR FEDERAL AID FINANCING AND/OR REIMBURSEMENT.

DESIGN 50

CONSTRUCTION 625

TOTAL FUNDING TRN N 675 N"

(4) By amending Item 98.10 to read:

"SP0603 FARRINGTION HIGHWAY IMPROVEMENTS BETWEEN HONOKAI HALE AND HAKIMO ROAD, OAHU

DESIGN AND CONSTRUCTION FOR IMPROVEMENTS ALONG FARRINGTON HIGHWAY FOR ALTERNATIVE CONGESTION RELIEF AND/OR SAFETY IMPROVEMENT PROJECTS ALONG FARRINGTON HIGHWAY BETWEEN HONOKAI HALE AND HAKIMO ROAD.

DESIGN 100

CONSTRUCTION 1,900

TOTAL FUNDING TRN E 2,000 E"

(5) By amending Item 115.01 to read:

"TP0601 ANE KEOHOKALOLE HIGHWAY IMPROVEMENTS, HAWAII

DESIGN, CONSTRUCTION, AND EQUIPMENT FOR THE EXTENSION OF ANE KEOHOKALOLE HIGHWAY, KEANALEHU DRIVE, MANAWALEA STREET, AND SUPPORTING WATER AND SEWER LINES.

DESIGN 1

CONSTRUCTION 5,998

EQUIPMENT 1

TOTAL FUNDING TRN E 6,000 E"

(6) By amending Item 124.02 to read:

"VP0601 KULA HIGHWAY AND HALEAKALA HIGHWAY IMPROVEMENTS, MAUI

PLANS, DESIGN, AND CONSTRUCTION FOR A SIDEWALK FOR KING KEKAULIKE HIGH SCHOOL ALONG KULA HIGHWAY, HALEAKALA HIGHWAY, AND OLD HALEAKALA HIGHWAY TO MAKAWAO AVENUE; APPROXIMATELY 1 1/2 MILES. FEDERAL FUNDS ARE FROM THE SAFE ROUTES TO SCHOOL (SRTS) PROGRAM. THIS PROJECT IS DEEMED NECESSARY TO QUALIFY FOR FEDERAL AID FINANCING AND/OR REIMBURSEMENT.

PLANS 35

DESIGN 35

CONSTRUCTION 620

TOTAL FUNDING TRN N 690 N"

SECTION 33. Any law to the contrary notwithstanding, the appropriations under Act 316, Session Laws of Hawaii 1989, section 222, as amended and renumbered by Act 299, Session Laws of Hawaii 1990, section 6, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-17 $106,715 N"

SECTION 34. 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, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-19 $663,412 N

C-21 102,103 N

C-40 41,000 E

C-40 306,000 J"

SECTION 35. 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, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-72 $52,000 E"

SECTION 36. Any law to the contrary notwithstanding, the appropriations under Act 327, Session Laws of Hawaii 1997, section 140A, as amended and renumbered by Act 116, Session Laws of Hawaii 1998, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-10 $480,094 N

C-18 192,615 N

C-63A 112,744 N"

SECTION 37. Any law to the contrary notwithstanding, the appropriations under Act 91, Session Laws of Hawaii 1999, section 64, as amended and renumbered by Act 281, Session Laws of Hawaii 2000, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-5A $ 900,000 N

C-5B 30,226 N

C-5E 4,000,000 N"

SECTION 38. 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, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

C-2 $3,800,000 E

C-2 6,000,000 N"

SECTION 39. Any law to the contrary notwithstanding, the appropriations under Act 178, Session Laws of Hawaii 2005, section 85, as amended and renumbered by Act 160, Session Laws of Hawaii 2006, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

G-83 $285,000 B

G-91 120,000 B"

PART VI. ISSUANCE OF BONDS

SECTION 40. 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 heretofore authorized (whether authorized and issued or authorized and still unissued), 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 41. 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 42. 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.

PART VII. SPECIAL PROVISIONS

SECTION 43. 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 44. GOVERNOR'S DISCRETIONARY POWERS. 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 45. 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 201H, 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 46. 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 47. 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 that 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.

The governor is authorized to use, at the governor's discretion, the airport revenue fund or airport revenue bond funds to finance those projects authorized in part II and listed in part IV of this Act or any other prior or future Acts where the method of financing is designated to be by airport passenger facility charge funds.

SECTION 48. 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 49. After the objectives and purposes of appropriations made in this Act from the general obligation bond 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, 2010, as provided in section 53 of this Act.

SECTION 50. 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, 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 51. After the objectives and the purposes of appropriations made in this Act for capital investment purposes from the state educational facilities improvement special fund have been met, any unrequired balances shall be transferred to the special funded project adjustment fund for state educational facilities.

SECTION 52. In the event that currently authorized appropriations specified for capital investment purposes 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 state educational facilities improvement special fund, the governor may make supplemental allotments from the special funded project adjustment fund for state educational facilities; provided further that the supplemental allotments from the special funded project adjustment fund for state educational facilities shall not be used to increase the scope of the project and may only be made to supplement currently authorized capital investment project cost elements.

SECTION 53. 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 2007‑2009 which are unencumbered as of June 30, 2010 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 31 of this Act where such appropriations have been deemed necessary to qualify for federal aid financing and reimbursement.

SECTION 54. 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 55. 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; provided further that agencies responsible for construction shall take into consideration legislative intent, the objectives of the user agency and 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 56. 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 projects when it is determined advantageous to do so by both the original expending agency and the agency to which expending authority is to be delegated.

SECTION 57. Where county capital improvement projects are partially or totally funded by state grants 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 58. 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, when the effects of the natural disasters or unforeseen emergencies create an urgent need to pursue a course of action that 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 59. 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 disasters 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 60. 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 61. 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 62. 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 63. 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 64. 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 65. 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 66. 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 67. 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 fund of originating expenses.

SECTION 68. 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 69. 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 70. 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 71. 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 72. With the approval of the governor, expending agencies that use appropriations authorized in part II of this Act for planning, land acquisition, design, construction, and equipment for repair and alterations may delegate responsibility and transfer funds to the construction program (AGS 221) for the implementation of the repair and alterations, when it is determined by the agencies that it is advantageous to do so.

SECTION 73. 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 74. 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 75. 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 76. 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 77. 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 2007‑2008 and the sum of $2,500 in fiscal year 2008‑2009 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 the department or agency (i.e., director, chairperson, comptroller, adjutant‑general, superintendent, state librarian, president, or attorney general).

SECTION 78. Provided that of the general fund appropriation for financial administration (BUF 115), the sum of $4,000 for fiscal year 2007‑2008 and the sum of $4,000 for fiscal year 2008‑2009 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 79. Provided that of the special fund appropriation for spectator events and shows ‑ Aloha Stadium (AGS 889), the sum of $2,500 for fiscal year 2007‑2008 and the sum of $2,500 for fiscal year 2008‑2009 may be expended at the discretion of the stadium manager for promotion and other stadium‑related purposes.

SECTION 80. Except as otherwise provided, the appropriation for the office of the governor (GOV 100) shall be expended at the discretion of the governor.

SECTION 81. 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 82. Provided that of the appropriations authorized for executive programs in part II of this Act for fiscal year 2007‑2008 and fiscal year 2008‑2009, settlements and judgments approved by the legislature in ATG‑1(07), the Claims Bill, shall be funded within each program's departmental allocation for the respective fiscal year.

SECTION 83. Provided that in the event that the amount of settlements and judgments approved by the legislature in ATG‑1(07), the Claims Bill, exceeds program allocations for fiscal year 2007‑2008 or fiscal year 2008‑2009, as applicable, for the purposes of meeting such obligations:

(1) A department, with the approval of the governor, is authorized to utilize allocated savings determined to be available from any other program within the department; and

(2) Unless otherwise provided by general law, the governor is authorized to transfer funds between allocations of appropriations within a department for the purposes of paying settlements and judgments of a program.

SECTION 84. 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 2007‑2008 and $20,000,000 for fiscal year 2008‑2009, 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 85. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances as may be available of general funds from any program in this Act, up to an aggregate total of $500,000, to supplement the department of land and natural resources' fire-fighter's contingency fund; provided further that these funds shall be used to prevent, control, and extinguish wildland fires within forest reserves, public hunting areas, wildlife and plant sanctuaries, and natural area reserves and to fulfill mutual aid agreements in cooperation with fire control agencies of the counties and federal government.

SECTION 86. Provided that no funds, including federal funds, shall be expended to fill any position not authorized by the legislature; provided further that this prohibition shall not apply to:

(1) The University of Hawaii and the Hawaii health systems corporation;

(2) Positions entirely federally funded;

(3) Positions established pursuant to section 76-16(b) subsections (3), (12), (13), (21), and (23), Hawaii Revised Statutes; or

(4) Where an agency has explicit statutory authorization to establish positions to accomplish necessary functions;

provided further that with regard to any of the positions identified in paragraphs (1), (2), (3), or (4), the respective agency or department shall submit a report to the legislature within five days of each use of this provision; provided further that the report shall include:

(1) Authority used to establish the position;

(2) Date the position was established;

(3) Projected date the position will be filled;

(4) Amounts projected to be expended in fiscal year 2007‑2008 and in fiscal year 2008‑2009;

(5) Source of funds used to pay for the position; and

(6) Functions to be performed by the position.

SECTION 87. Provided that in implementing Act 51, Session Laws of Hawaii 2004, the affected departments and the department of education, with approval of the director of finance, may each transfer positions and funds to the other; and provided that the transfers are necessary to effectuate the purposes of Act 51, Session Laws of Hawaii 2004.

PART VIII. MISCELLANEOUS AND EFFECTIVE DATE

SECTION 88. 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 89. 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 90. Material to be repealed is bracketed and stricken. New material in prior enacted laws is underscored.

SECTION 91. This Act shall take effect on July 1, 2007.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	200
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII