HOUSE OF REPRESENTATIVES	H.B. NO.	1904
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO GOVERNMENT.

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

     SECTION 1.  The purpose of this Act is to address the unfunded accrued liability of the employees' retirement system.  More specifically, this Act sets aside from the general excise tax revenues the amount necessary to amortize the unfunded accrued liability for state employees.

     This Act takes effect on July 1, 2011.

     SECTION 2.  Section 88-124, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The State shall pay on a monthly basis to the various funds of the system the amounts payable by the State under this part.  Payments shall be made within thirty days after the end of the month.

Payments for the unfunded accrued liability portion of the State's monthly contribution for state employees shall be made from the account in the general fund established pursuant to section 237-31.  Reimbursements to the general fund from other funds, as required under section 88-125, shall be deposited into the general fund, but not the account.

Payments for the normal cost portion of the State's monthly contribution for state employees shall be made from the general fund, but not the account established pursuant to section 237-31."

     SECTION 3.  Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

     "§237-31  Remittances.  All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted.  The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

     (1)  The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund; [and]

     (2)  A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund[.]; and

(3) A sum equivalent to the unfunded accrued liability contribution by the State for state employees during a fiscal year shall be deposited in that fiscal year into a separate account in the general fund."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011.

INTRODUCED BY:

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Report Title:

Unfunded Liability Contribution For State Employees; General Excise Tax Revenue Set-Aside

Description:

Requires the set aside from the general excise tax revenues of an amount equivalent to the unfunded accrued liability contribution by the State for state employees.  Takes effect on 07/01/11.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.