Report Title:

Special Funds

Description:

Clarifies the law with respect to the establishment and continuance of special funds.

THE SENATE	S.B. NO.	702
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to special funds.

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

     SECTION 1.  Section 37-52.3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§37-52.3[]]  [Criteria for the] Special fund; establishment and continuance [of special funds].  Special funds shall only be established pursuant to an [act] Act of the legislature.  The legislature, in establishing or reviewing a special fund to determine whether it should be continued, shall ensure that the special fund:

     (1)  Serves the purpose for which it was originally established;

     (2)  Reflects a clear nexus between the benefits sought and charges made upon the users or beneficiaries of the program[,] or activity that is funded by the special fund, as opposed to serving primarily as a means to provide the program or users with an automatic means of support that is [removed from the normal] not part of the budget and appropriation process;

     (3)  Provides an appropriate means of financing for the program or activity; and

     (4)  Demonstrates the capacity to be financially self-sustaining."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________