THE SENATE	S.B. NO.	2807
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

PROPOSING AN AMENDMENT TO ARTICLE vii, SECTION 6, OF THE HAWAII CONSTITUTION, relating to THE TAX REBATE REQUIREMENT.

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

     SECTION 1.  The purpose of this Act is to propose an amendment to article VII, section 6, of the Constitution of the State of Hawaii to amend the requirement that excess general fund revenues be returned to taxpayers of the State as a tax refund and allow the legislature to deposit these excess revenues into the emergency and budget reserve fund as an alternative.

     SECTION 2.  Article VII, section 6, of the Constitution of the State of Hawaii is amended to read as follows:

"DISPOSITION OF EXCESS REVENUES

Section 6.  Whenever the state general fund balance at the close of each of two successive fiscal years exceeds five percent of general fund revenues for each of the two fiscal years, the legislature in the next regular session [shall] may provide for a tax refund or tax credit to the taxpayers of the State, or deposit the excess funds into the emergency and budget reserve fund established by section 328L-3, Hawaii Revised Statutes, as provided by law."

     SECTION 3. The question printed on the ballot shall be as follows:

     "Shall the legislature be provided with the authority to determine whenever the state general fund balance at the close of two successive fiscal years exceeds five per cent of the general fund revenues for each of the two fiscal years, whether the excess revenues should be used to provide a tax refund or tax credit to the taxpayers of the State, or deposited into the emergency and budget reserve fund, which is a temporary supplemental source of funding for the State in times of emergency, economic downturn, or unforeseen reduction in revenues?"

     SECTION 4.  Constitutional material to be repealed is bracketed. New constitutional material is underscored.

     SECTION 5.  This amendment shall take effect upon

compliance with article XVII, section 3, of the Constitution of the State of Hawaii.

INTRODUCED BY:

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Report Title:

Constitutional Amendment; Excess Revenues; Emergency and Budget Reserve Fund

Description:

Proposes a constitutional amendment to article VII, section 6 of the state constitution to authorize the legislature to determine whether excess funds should be used as tax refunds or tax credits to taxpayers of the state or diverted to the state's emergency and budget reserve fund.

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