HB200.DOC

PART I. GENERAL PROVISIONS

SECTION 1. SHORT TITLE. This Act shall be known and may be cited as the General Appropriations Act of 2009.

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, 2009 and ending June 30, 2011. 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

ECONOMIC DEVELOPMENT

SECTION 4. Provided that of the general fund appropriation for agricultural resource management (AGR 141), the sum of $361,135 for fiscal year 2009‑2010 and the sum of $361,135 for fiscal year 2010‑2011 shall be deposited into the irrigation system revolving fund to be expended for the purposes of the fund.

SECTION 5. Provided that of the general fund appropriation for agribusiness development and research (AGR 161), the sum of $50,601 for fiscal year 2009‑2010 and the sum of $50,601 for fiscal year 2010‑2011 shall be deposited into the Hawaii agricultural development revolving fund to be expended for the purposes of the fund.

TRANSPORTATION

SECTION 6. 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 2009‑2011 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2009-2010 FY 2010-2011

TRN 102 $6,710,000 $7,420,000

TRN 104 $ 738,000 $ 588,000

TRN 111 $1,450,000 $1,600,000

TRN 114 $ 924,500 $ 924,500

TRN 116 $ 345,000 $ 345,000

TRN 118 $ 335,000 $ 335,000

TRN 131 $2,125,000 $1,575,000

TRN 133 $ 103,000 $ 103,000

TRN 135 $ 555,000 $ 555,000

TRN 141 $ 602,000 $ 390,000

TRN 143 $ 147,000 $ 97,000

TRN 151 $ 169,500 $ 169,500

TRN 161 $ 570,000 $ 740,000

TRN 163 $ 25,000

TRN 195 $3,000,000 $3,000,000;

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

SECTION 7. Provided that of the special fund appropriation for airports administration (TRN 195), the sum of $58,955,199 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $80,536,236 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be expended for the following purposes:

Purpose FY 2009-2010 FY 2010-2011

Interest and principal on

revenue bonds $58,955,199 $80,536,236;

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

SECTION 8. 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 2009‑2011 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2009-2010 FY 2010-2011

TRN 301 $8,398,400 $8,146,400

TRN 303 $1,131,000 $1,256,000

TRN 311 $ 846,000 $1,116,000

TRN 313 $1,316,000 $1,146,000

TRN 331 $1,131,000 $1,291,000

TRN 333 $ 30,000 $ 30,000

TRN 341 $ 544,600 $ 514,600

TRN 351 $ 360,000 $ 260,000

TRN 361 $ 773,000 $ 745,000

TRN 363 $ 225,000 $ 275,000;

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 $34,943,190 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $34,175,330 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be expended for the following purposes:

Purpose FY 2009-2010 FY 2010-2011

Interest and principal on

general obligation bonds $ 2,894,467 $ 3,428,688

Interest and principal on

revenue bonds $32,048,723 $30,746,642;

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

SECTION 10. 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 2009‑2011 shall be expended for special repair and maintenance purposes only as follows:

Program I.D. FY 2009-2010 FY 2010-2011

TRN 501 $24,758,413 $24,821,993

TRN 511 $10,876,404 $10,876,404

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

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

TRN 551 $ 515,000 $ 515,000

TRN 561 $ 8,021,534 $ 8,021,534;

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

SECTION 11. Provided that of the special fund appropriation for highways administration (TRN 595), the sum of $42,866,595 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $49,312,083 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be expended for the following purposes:

Purpose FY 2009-2010 FY 2010-2011

Interest and principal on

general obligation bonds $13,081,894 $13,081,894

Interest and principal on

revenue bonds $29,784,701 $36,230,189;

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

HEALTH

SECTION 12. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $13,714,634 for fiscal year 2009‑2010 and the sum of $13,714,634 for fiscal year 2010‑2011 shall be deposited into the emergency and budget reserve fund.

SECTION 13. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $20,690,619 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $20,690,619 or so much thereof as may be necessary for fiscal year 2010‑2011 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 $5,597,810 of the special fund appropriation for fiscal year 2009‑2010 and a sum not to exceed $5,597,810 of the special fund appropriation for fiscal year 2010‑2011 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 14. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $6,997,262 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $6,997,262 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be deposited into the Hawaii tobacco prevention and control trust fund.

SECTION 15. Provided that of the special fund appropriation for tobacco settlement (HTH 590), the sum of $15,673,867 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $15,673,867 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be deposited into the university revenue‑undertakings fund.

EDUCATION

SECTION 16. Provided that of the general fund appropriation for retirement benefits payments-DOE (EDN 941), the sum of $175,693,271 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $177,450,204 or so much thereof as may be necessary for fiscal year 2010-2011 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 $87,927,988 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $88,807,269 or so much thereof as may be necessary for fiscal year 2010‑2011 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 retirement benefits payments (BUF 941) 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; 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.

SECTION 17. Provided that of the general fund appropriation for health premium payments‑DOE (EDN 943), the sum of $182,617,125 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $197,937,761 or so much thereof as may be necessary for fiscal year 2010‑2011 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; provided further that the amounts shall be transferred to health premium payments (BUF 943) 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; 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.

SECTION 18. Provided that of the general fund appropriation for debt service payments‑DOE (EDN 915), the sum of $194,793,118 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $204,995,708 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be used to pay for the debt service on general obligation bonds issued for department of education projects; provided further that the amounts shall be transferred to debt service payments (BUF 915) 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; 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.

HIGHER EDUCATION

SECTION 19. Provided that of the general fund appropriation for retirement benefits payments‑UH (UOH 941), the sum of $79,280,371 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $80,271,377 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be used to pay for pension accumulation contributions for University of Hawaii employees; provided further that the sum of $38,914,935 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $39,401,370 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be used to pay for social security/Medicare contributions for University of Hawaii employees; provided further that the amounts shall be transferred to retirement benefits payments (BUF 941) 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; 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.

SECTION 20. Provided that of the general fund appropriation for health premium payments‑UH (UOH 943), the sum of $63,937,201 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $69,839,777 or so much thereof as may be necessary for fiscal year 2010‑2011 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 health premium payments (BUF 943) 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; 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.

SECTION 21. Provided that of the general fund appropriation for debt service payments‑UH (UOH 915), the sum of $72,092,672 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $75,868,637 or so much thereof as may be necessary for fiscal year 2010‑2011 shall be used to pay for debt service on general obligation bonds issued for University of Hawaii projects; provided further that the amounts shall be transferred to debt service payments (BUF 915) 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; 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.

PUBLIC SAFETY

SECTION 22. Provided that of the general fund appropriation for amelioration of physical disasters (DEF 110), the sum of $500,000 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $500,000 or so much thereof as may be necessary for fiscal year 2010‑2011 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 23. Provided that of the general fund appropriation for the office of the governor (GOV 100), the sum of $10,000 or so much thereof as may be necessary for fiscal year 2009‑2010 and the sum of $10,000 or so much thereof as may be necessary for fiscal year 2010‑2011 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 24. 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 25. 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)

A-6.04 $17,442 C

A-6.05 13,511 C

A-6.06 49,026 C"

SECTION 26. Any law to the contrary notwithstanding, the appropriations under Act 213, Session Laws of Hawaii 2007, section 125, as amended and renumbered by Act 158, Session Laws of Hawaii 2008, section 5, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-14 $ 179 C

G-20 100,000 B

G-22.01 1,200,000 B

G-23.01 100,000 B

G-28.01 646,000 B

G-34 250,000 B

G-37 65,000 B

G-37.02 850,000 B

G-41 300,000 B

G-52 1,000,000 B

G-53.01 750,000 B

G-56.01 600,000 B

G-77 1,560,000 B

G-80.01 200,000 B

G-86.01 400,000 B

G-91 400,000 B

G-93 40,000 B

G-95 900,000 B"

PART VI. ISSUANCE OF BONDS

SECTION 27. 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 28. 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 29. HIGHWAY REVENUE BONDS. The department of transportation is authorized to issue highway revenue bonds for highway 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 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 the state highway 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 highway revenue bond funds.

SECTION 30. UNIVERSITY OF HAWAII REVENUE BONDS. The university of Hawaii board of regents is authorized to issue revenue bonds for 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, in principal amounts as are required to yield the amounts appropriated for capital improvement program projects, and if determined by the board of regents and approved by the governor, any additional principal amount deemed necessary by the board of regents to pay interest on the revenue bonds during the estimated period of construction of the capital improvement program project for which the revenue bonds are issued, to establish, maintain, or increase reserves for the revenue bonds, and to pay all or any part of the expenses related to the issuance of the revenue bonds. The revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as amended, except that the bonds shall be issued in the name of the university of Hawaii and not in the name of the State. The principal of and interest on the revenue bonds, to the extent not paid from the proceeds of the revenue bonds, shall be payable from and secured by the revenues derived from facilities under the ownership of the university of Hawaii or operated and managed by the university of Hawaii, or any part thereof as the board of regents may determine, including other moneys, rates, rents, fees, or charges currently or hereafter derived from or arising through the ownership, operation, and management of university facilities and the furnishings and supplying of the services thereof. The expenses related to the issuance of the revenue bonds, to the extent not paid from the proceeds of the bonds, shall be paid from the special funds of the university of Hawaii.

SECTION 31. HAWAIIAN HOME LANDS REVENUE BONDS. The department of Hawaiian home lands is authorized to issue Hawaiian home lands revenue bonds for Hawaiian home lands 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 Hawaiian home lands revenue bonds during the estimated period of construction of the capital improvements program project for which such Hawaiian home lands revenue bonds are issued, to establish, maintain, or increase reserves for the Hawaiian home lands 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 Hawaiian home lands 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 Hawaiian home lands 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 Hawaiian home lands, revenues from available lands as defined in section 203 of the Hawaii Homes Commission Act, 1920, and related facilities under the ownership of the State or operated and managed by the department or such parts of either thereof as the department may determine, including rents and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of Hawaiian home lands, available lands as defined in section 203 of the Hawaii Homes Commission Act, 1920, and related facilities. The expenses of the issuance of such Hawaiian home lands revenue bonds shall, to the extent not paid from the proceeds of such bonds, be paid from the Hawaiian home lands special fund.

The governor, in the governor's discretion, is authorized to use the Hawaiian home lands special 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 Hawaiian home lands revenue bond funds.

PART VII. SPECIAL PROVISIONS

SECTION 32. 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 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 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.

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 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, at 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 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, 2012, as provided in section 41 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, 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. 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 appropriated in part II and described further in part IV, and shall be considered a supplementary appropriation thereto.

SECTION 40. 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 41. 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 2009‑2011 which are unencumbered as of June 30, 2012 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 24 of this Act where such appropriations have been deemed necessary to qualify for federal aid financing and reimbursement.

SECTION 42. 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 43. 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 44. 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 45. 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 46. 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; provided further that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor; 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 47. 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; provided further that the use of such funds does not conflict with general law; and provided further that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor.

SECTION 48. 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 49. 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 50. 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 51. 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 52. 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 53. 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 54. 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 55. 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 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. 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 59. 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 60. 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 61. 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 62. 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 63. 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 64. 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 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 for fiscal year 2009‑2010 and the sum of $2,500 in fiscal year 2010‑2011 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, president, or attorney general).

SECTION 66. Provided that of the general fund appropriation for Hawaii state public library system (EDN 407), the sum of $2,500 for fiscal year 2009‑2010 and the sum of $2,500 for fiscal year 2010‑2011 may be used to establish a separate protocol account to be expended at the discretion of the state librarian.

SECTION 67. Provided that of the general fund appropriation for financial administration (BUF 115), the sum of $4,000 for fiscal year 2009‑2010 and the sum of $4,000 for fiscal year 2010‑2011 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 68. Provided that of the special fund appropriation for spectator events and shows ‑ Aloha Stadium (AGS 889), the sum of $2,500 for fiscal year 2009‑2010 and the sum of $2,500 for fiscal year 2010‑2011 may be expended at the discretion of the stadium manager for promotion and other stadium‑related purposes.

SECTION 69. Except as otherwise provided, the appropriation for the office of the governor (GOV 100) shall be expended at the discretion of the governor.

SECTION 70. 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 71. Provided that of the appropriations authorized for executive programs in part II of this Act for fiscal year 2009‑2010 and fiscal year 2010-2011, settlements and judgments approved by the legislature in ATG‑1(09), the Claims Bill, shall be funded within each program's departmental allocation for the respective fiscal year.

SECTION 72. Provided that in the event that the amount of settlements and judgments approved by the legislature in ATG‑1(09), the Claims Bill, exceeds program allocations for fiscal year 2009‑2010 or fiscal year 2010‑2011, 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 73. 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 2009‑2010 and $20,000,000 for fiscal year 2010‑2011, 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 74. 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 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 75. Provided that of the special fund appropriation for native resources and fire protection program (LNR 402), the sum of $3,000,000 or so much thereof as may be necessary and available for fiscal year 2009‑2010 and the sum of $3,000,000 or so much thereof as may be necessary and available for fiscal year 2010‑2011 shall be expended by the department of land and natural resources as directed by the Hawaii invasive species council to prevent the introduction of invasive species, implement invasive species control, conduct research and outreach, and eradicate established invasive species; provided further that the funds shall not be expended for any other purpose; provided further that any unexpended funds shall lapse to their respective funds; provided further that the funds to be expended for the program are matched by an equivalent amount, up to $3,000,000, in new federal, county, private, and other non‑state funds or in‑kind services for each fiscal year; provided further that the department shall jointly work with other agencies and the community; and provided further that portions of this appropriation may be transferred to other state departments to be expended for activities related to the statewide invasive species prevention, control, research, and outreach partnership program.

SECTION 76. 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 2009‑2010 and in fiscal year 2010‑2011;

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

(6) Functions to be performed by the position.

PART VIII. MISCELLANEOUS AND EFFECTIVE DATE

SECTION 77. 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 78. 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 79. Material to be repealed is bracketed and stricken. New material in prior enacted laws is underscored.

SECTION 80. This Act shall take effect on July 1, 2009.

INTRODUCED BY:

_____________________________

By Request

HOUSE OF REPRESENTATIVES	H.B. NO.	200
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII