SB2007.DOC

SECTION 1. Section 37-31, Hawaii Revised Statutes, is amended to read as follows:

"§37-31 Intent and policy. It is declared to be the policy and intent of the legislature that the total appropriations made by it, or the total of any budget approved by it, for any department or establishment, shall be deemed to be the maximum amount authorized to meet the requirements of the department or establishment for the period of the appropriation, excepting as may otherwise be provided by law, and that the governor and the director of finance should be given the powers granted by sections 37-32 to 37-41 in order that savings may be effected by careful supervision throughout each appropriation period with due regard to changing conditions; and by promoting more economic and efficient management of state departments and establishments[.]; provided that the powers granted to the governor and the director of finance by sections 37-32 to 37-41 shall not be construed to include the power to:

(1) Restrict funding to a program to the extent that the program cannot adequately execute its intended purpose; or

(2) Suspend or abolish any existing program,

if the program has been authorized by the legislature and moneys have been appropriated for the program, unless specifically authorized by the legislature by legislative act."

SECTION 2. Section 37-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:

(1) For the University of Hawaii, the director of finance may modify or amend any previous allotment only upon application of or notice to the university, and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;

(2) The modification or amendment shall be made only to avoid an illegal result or in anticipation of a revenue shortfall;

(3) No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; [~~and~~]

(4) No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds[.]; and

(5) No modification or amendment shall reduce an allotment below the amount required to adequately execute the intended purpose of an existing program authorized by the legislature and for which moneys have been appropriated unless specifically authorized by the legislature by legislative act."

SECTION 3. Section 37-37, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in subsection (b), when the director of finance determines at any time that the probable receipts from taxes or any other sources for any appropriation will be less than was anticipated, and that consequently the amount available for the remainder of the term of the appropriation or for any allotment period will be less than the amount estimated or allotted therefor, the director shall, with the approval of the governor and after notice to the department or establishment concerned, reduce the amount allotted or to be allotted; provided that no reduction reduces any allotted amount below the amount required to meet valid obligations or commitments previously incurred against the allotted funds[.]; and provided further that no reduction shall reduce an allotment below the amount required to adequately execute the intended purpose of an existing program authorized by the legislature and for which moneys have been appropriated unless specifically authorized by the legislature by legislative act."

SECTION 4. Section 37-65, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-65[]] Responsibilities of the governor. The governor shall direct the preparation and administration of state programs, program and financial plans, and budget. The governor shall evaluate the long-range program plans, requested budgets and alternatives to state objectives and programs; and formulate and recommend for consideration by the legislature the State's long-range plans, a proposed six-year state program and financial plan and a proposed state budget. The governor shall not utilize the powers granted under sections 37-32 to 37-41 to:

(1) Restrict funding to a program to the extent that the program cannot adequately execute its intended purpose; or

(2) Suspend or abolish any existing program,

if the program is authorized by the legislature and moneys have been appropriated for the program, unless specifically authorized by the legislature by legislative act."

SECTION 5. Section 37-66, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-66[]] Responsibilities of the legislature. The legislature shall:

(1) Consider the long-range plans, including the proposed objectives and policies, the six-year state program and financial plan, and the budget and revenue proposals recommended by the governor and any alternatives thereto[.];

(2) Adopt programs and the state budget, and appropriate moneys to implement the programs it deems appropriate[.];

(3) Unless otherwise provided by law, have the sole power to determine by law to establish new programs or suspend or abolish an existing program for which public moneys must be appropriated and expended;

[~~(3)~~] (4) Adopt such other legislation as necessary to implement state programs[.]; and

[~~(4)~~] (5) Review the implementation of the state budget and program accomplishments and execution of legislative policy direction. Implementation of the state budget and program management, execution, and performance shall be subject to post-audits by the auditor who shall report the auditor's findings and recommendations to the legislature as provided in chapter 23."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2007
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII