SB120 HD1.DOC

PART I

EXPIRED FUNDS

SECTION 1. The legislature finds that certain funds, established by statutes that have long been repealed, are effectively non-functional. The legislature further finds that since the statutory purposes for which these funds were established have been repealed, these funds have outlived their usefulness to the State. Finally, the legislature finds that the moneys currently languishing in these funds will serve the State more effectively if they are deposited into the general fund and, therefore, become accessible to the State.

The purpose of this part is to terminate certain funds for which the statutory authority has expired and to deposit the residual amounts left in each fund into the general fund.

SECTION 2. On June 30, 2011:

(1) All moneys in the travel agency recovery fund and the travel agency education fund, as of June 30, 2011, shall be transferred to the general fund of the State of Hawaii; and

(2) The travel agency recovery fund and the travel agency education fund shall cease to exist.

PART II

UNIVERSITY OF HAWAII

SECTION 3. Chapter 304A, Hawaii Revised Statutes, is amended by adding six new sections to subpart C of part V to be appropriately designated and to read as follows:

"§304A-A Child care programs special fund. There is established a child care programs special fund for the operation of child care programs established under section 304A‑116 and the construction and renovation of child care centers established by the University of Hawaii. Fees charged for child care at child care programs, proceeds from donations to the university for child care programs, and proceeds from loans or other instruments of indebtedness for the construction or renovation of child care centers shall be deposited into the special fund. Expenditures from the special fund shall be made for the operation of child care programs and payment of principal and interest on obligations incurred for the construction or renovation of child care centers.

§304A-B Discoveries and inventions special fund. There is established a discoveries and inventions special fund into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year, as determined by the board of regents. Appropriations by the legislature subject to the approval of the governor, proceeds from the commercial exploitation of inventions and intellectual property developed at the university, gifts, donations, fees collected, and grants from public agencies and private persons may also be deposited into the special fund for the purposes of supporting innovation and research commercialization and the patenting, copyrighting, licensing, and marketing of discoveries, inventions, and technologies developed at the university. The special fund shall be used to develop technologies that have potential commercial value, support the administration of technology transfer activities, and facilitate economic development through education and research undertaken at the university.

§304A-C University of Hawaii alumni special fund. There is established the University of Hawaii alumni special fund into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni. Funds deposited into this special fund may be expended by the university for all costs associated with conducting alumni affairs, activities, and programs for the university system, including expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audiovisual, musical, and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements.

§304A-D University of Hawaii at Manoa intercollegiate athletics special fund and University of Hawaii at Hilo intercollegiate athletics special fund. Notwithstanding any other law to the contrary, there are established the University of Hawaii at Manoa intercollegiate athletics special fund and the University of Hawaii at Hilo intercollegiate athletics special fund for the intercollegiate athletic programs of the University of Hawaii at Manoa and the University of Hawaii at Hilo, which shall be used to receive, deposit, disburse, and account for funds from the activities of the intercollegiate athletic programs. The university may establish appropriate charges for activities related to its athletic programs and the use of its athletic facilities, the proceeds from which shall be deposited into these special funds.

The university shall maintain the financial integrity and viability of these special funds, including the maintenance of an adequate reserve to cope with the various factors that impact the revenue structure of an intercollegiate athletic program.

§304A-E Animal research farm, Waialee, Oahu special fund. There is established the animal research farm, Waialee, Oahu special fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources of the University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies. Funds deposited into this special fund shall be expended for animal research, and services and supplies related thereto.

§304A-F University of Hawaii-Hilo theatre special fund. There is established the University of Hawaii-Hilo theatre special fund, which shall consist of admissions, advertising sales, corporate sponsorships, marketing, merchandising, donations, fund-raising, fees, charges, and other moneys collected in conjunction with the University of Hawaii-Hilo theatre program. The special fund shall be administered by the office of administrative affairs of the University of Hawaii at Hilo. Funds may be expended for all costs associated with the theatre program, including artists' fees, production costs, personnel costs, honoraria, per diem, hotel and room rentals, food and refreshments, printing and mailing, advertising, airfare, lei, rental or purchase of equipment, and theater supplies and materials."

SECTION 4. Section 304A-116, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The provision of child care services may be supported with proceeds from the child care programs [~~revolving~~] special fund established under section [~~[304A-2252],~~] 304A-A, public funds, and private grants and gifts to pay for the expenses of operation, including payment of principal and interest on any obligations incurred."

SECTION 5. Section 304A-2253, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) There is established a University of Hawaii research and training revolving fund into which shall be deposited one hundred per cent of the total amount of indirect overhead revenues generated by the university from research and training programs. The board of regents is authorized to expend one hundred per cent of the revenues deposited in the fund for:

(1) Research and training purposes that may result in additional research and training grants and contracts;

(2) Facilitating research and training at the university; and

(3) Further deposit into the discoveries and inventions [~~revolving fund and the University of Hawaii housing assistance revolving~~] special fund."

2. By amending subsection (c) to read:

"(c) Notwithstanding sections 304A-107[,] and [[]304A‑2254[~~], and [304A-2258]~~] to the contrary, the board of regents or its designee, may establish a separate account within the research and training revolving fund for the purpose of providing advance funding to meet reimbursable costs incurred in connection with federally financed research and training projects. Any reimbursement received as a result of providing advance funding shall be deposited into the research and training revolving fund to be used for the purpose of meeting reimbursable costs incurred in connection with federally financed projects."

SECTION 6. Section 304A-2158, Hawaii Revised Statutes, is repealed.

["~~[§304A-2158] Western Governors University special fund.~~ There is established a Western Governors University special fund into which shall be deposited all revenues derived from the State's participation in the Western Governors University, except University of Hawaii income from tuition and fees charged for regular courses of instruction and tuition-related course and fee charges to students. The fund shall be administered by the board of regents of the University of Hawaii and shall be used for the State's membership and participation in the Western Governors University."]

SECTION 7. Section 304A-2252, Hawaii Revised Statutes, is repealed.

["~~[§304A-2252] Child care programs revolving fund.~~ There is established a child care programs revolving fund for the operation of child care programs established under section 304A‑116 and the construction and renovation of child care centers established by the University of Hawaii. Fees charged for child care at child care programs, proceeds from donations to the university for child care programs, and proceeds from loans or other instruments of indebtedness for the construction or renovation of child care centers shall be deposited into the revolving fund. Expenditures from the revolving fund shall be made for the operation of child care programs and payment of principal and interest on obligations incurred for the construction or renovation of child care centers."]

SECTION 8. Section 304A-2254, Hawaii Revised Statutes, is repealed.

["~~[§304A-2254] Discoveries and inventions revolving fund.~~ There is established a discoveries and inventions revolving fund into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year, as determined by the board of regents. Appropriations by the legislature subject to the approval of the governor, proceeds from the commercial exploitation of inventions and intellectual property developed at the university, gifts, donations, fees collected, and grants from public agencies and private persons may also be deposited into the fund for the purposes of supporting innovation and research commercialization and the patenting, copyrighting, licensing, and marketing of discoveries, inventions, and technologies developed at the university. The fund shall be used to develop technologies that have potential commercial value, support the administration of technology transfer activities, and facilitate economic development through education and research undertaken at the university."]

SECTION 9. Section 304A-2258, Hawaii Revised Statutes, is repealed.

["~~[§304A-2258] University of Hawaii housing assistance revolving fund.~~ There is established the University of Hawaii housing assistance revolving fund into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year as determined by the board of regents. The fund shall be used to:

~~(1)~~ ~~Implement the university housing assistance master plan, in accordance with policies adopted by the board of regents; and~~

~~(2)~~ ~~Account for all transactions of the university housing assistance program, including but not limited to revenues, expenditures, loans, and transfers.~~"]

SECTION 10. Section 304A-2259, Hawaii Revised Statutes, is repealed.

["~~[§304A-2259] University of Hawaii alumni revolving fund.~~ There is established the University of Hawaii alumni revolving fund into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni. Funds deposited into this revolving fund may be expended by the university for all costs associated with conducting alumni affairs, activities, and programs for the university system, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audiovisual, musical, and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements."]

SECTION 11. Section 304A-2261, Hawaii Revised Statutes, is repealed.

["~~[§304A-2261] University of Hawaii at Manoa intercollegiate athletics revolving fund and University of Hawaii at Hilo intercollegiate athletics revolving fund.~~ Notwithstanding any other law to the contrary, there are established the University of Hawaii at Manoa intercollegiate athletics revolving fund and the University of Hawaii at Hilo intercollegiate athletics revolving fund for the intercollegiate athletic programs of the University of Hawaii at Manoa and the University of Hawaii at Hilo, which shall be used to receive, deposit, disburse, and account for funds from the activities of the intercollegiate athletic programs. The university may establish appropriate charges for activities related to its athletic programs and the use of its athletic facilities, the proceeds from which shall be deposited into these revolving funds.

The university shall maintain the financial integrity and viability of these revolving funds, including the maintenance of an adequate reserve to cope with the various factors that impact the revenue structure of an intercollegiate athletic program."]

SECTION 12. Section 304A-2262, Hawaii Revised Statutes, is repealed.

["~~[§304A-2262] Animal research farm, Waialee, Oahu revolving fund.~~ There is established the animal research farm, Waialee, Oahu revolving fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources of the University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies. Funds deposited into this revolving fund shall be expended for animal research, and services and supplies related thereto."]

SECTION 13. Section 304A-2264, Hawaii Revised Statutes, is repealed.

["~~[§304A-2264] Conference center revolving fund; University of Hawaii at Manoa.~~ There is established the conference center revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii at Manoa. All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund. The dean of the college of continuing education and community service is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audiovisual equipment, and conference supplies and materials."]

SECTION 14. Section 304A-2265, Hawaii Revised Statutes, is repealed.

["~~[§304A-2265] International exchange healthcare tourism revolving fund.~~ (a) There is established the international exchange healthcare tourism revolving fund for the international exchange of healthcare tourism program into which shall be deposited all donations, gifts, contributions, legislative appropriations, and moneys generated by the program through education, training, and research contracts and grants. Moneys deposited into this fund for the school of medicine and the school of nursing and dental hygiene shall be divided into separate accounts for each school, provided that moneys not designated for use by a particular school shall be divided equally. Moneys shall be expended from each account by the school of medicine and the school of nursing and dental hygiene, for student aid, training projects, teaching, supplies, services, and activities related to the development and promotion of the health-related tourism education program.

(b) All unexpended and unencumbered moneys appropriated by the legislature remaining in the fund at the close of each fiscal year that are deemed, by the director of finance, to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year shall lapse to the credit of the state general fund."]

SECTION 15. Section 304A-2266, Hawaii Revised Statutes, is repealed.

["[§304A-2266] Education laboratory school summer programs revolving fund. There is established the education laboratory school summer programs revolving fund, from which shall be paid the cost of operations of the education laboratory school summer programs. The education laboratory school may establish appropriate charges for activities related to its summer programs, the proceeds from which shall be deposited into this revolving fund."]

SECTION 16. Section 304A-2269, Hawaii Revised Statutes, is repealed.

["~~[§304A-2269] Community college and University of Hawaii at Hilo bookstore revolving fund.~~ There is established the community college and University of Hawaii at Hilo bookstore revolving fund for the community college and University of Hawaii at Hilo bookstores, from which shall be paid the cost of goods or services rendered or furnished to the bookstores and which shall be replenished through charges made for goods and services or through transfers from other accounts or funds."]

SECTION 17. Section 304A-2271, Hawaii Revised Statutes, is repealed.

["[§304A-2271] University of Hawaii-Hilo theatre revolving fund. There is established the University of Hawaii-Hilo theatre revolving fund, which shall consist of admissions, advertising sales, corporate sponsorships, marketing, merchandising, donations, fund-raising, fees, charges, and other moneys collected in conjunction with the University of Hawaii-Hilo theatre program. The revolving fund shall be administered by the office of administrative affairs of the University of Hawaii at Hilo. Funds may be expended for all costs associated with the theatre program, including artists' fees, production costs, personnel costs, honoraria, per diem, hotel and room rentals, food and refreshments, printing and mailing, advertising, airfare, leis, rental or purchase of equipment, and theater supplies and materials."]

SECTION 18. All fund balances remaining unencumbered and unexpended as of June 30, 2011, in the University of Hawaii at Manoa conference center revolving fund shall be transferred to the credit of the University of Hawaii commercial enterprises revolving fund established under section 304A-2251, Hawaii Revised Statutes.

SECTION 19. All fund balances remaining unencumbered and unexpended as of June 30, 2011, in the University of Hawaii housing assistance revolving fund shall be transferred to the credit of the Manoa faculty housing program under the University of Hawaii auxiliary enterprises special fund established under section 304A-2157, Hawaii Revised Statutes.

SECTION 20. The conversion of revolving funds to special funds by repealing language in sections 7, 8, 10, 11, 12, and 17 of this Act and inserting new language in section 3 of this Act shall in no way be construed as an authorization to remove, alter, or amend any moneys from any revolving fund other than for the purposes of this Act and for the allowable uses under relevant law.

PART III

FUND TRANSFERS

SECTION 21. The recession of 2008 swept across the nation and many parts of the world with unanticipated force and brought with it enormous challenges for governments at all levels. Its effects on businesses and employment are still being felt today, including a profound impact on Hawaii in terms of tax revenues and the state budget.

The legislature finds that due to the extraordinary fiscal circumstances the State is facing, non-general funds must be reviewed and scrutinized to determine if there is an excess of balances available to help address the critical budget shortfall in fiscal year 2010-2011.

The purpose of this part is to help address the fiscal year 2010-2011 budget shortfall by transferring excess balances from various non-general funds into the State's general fund.

SECTION 22. The legislature determines that there is in the state risk management revolving fund at least $1,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the state risk management revolving fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 23. The legislature determines that there is in the stadium special fund at least $500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the stadium special fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 24. The legislature determines that there is in the medicaid investigations recovery fund at least $500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the medicaid investigations recovery fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 25. The legislature determines that there is in the aloha tower special fund at least $1,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the aloha tower special fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 26. The legislature determines that there is in the Waialua loan subsidy program fund at least $1,103 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the Waialua loan subsidy program fund to the general fund the sum of $1,103 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 27. The legislature determines that there is in the UH faculty housing project series 1995 bond proceed special fund at least $520,780 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the UH faculty housing project series 1995 bond proceed special fund to the general fund the sum of $520,780 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 28. The legislature determines that there is in the Kikala-Keokea housing revolving fund at least $474,014 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the Kikala-Keokea housing revolving fund to the general fund the sum of $474,014 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 29. The legislature determines that there is in the compliance resolution fund – business registration sub-account at least $1,500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the compliance resolution fund – business registration sub-account to the general fund the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 30. The legislature determines that there is in the Hawaii teacher standards board special fund at least $1,200,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the Hawaii teacher standards board special fund to the general fund the sum of $1,200,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 31. The legislature determines that there is in the school food service special fund at least $3,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the school food service special fund to the general fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 32. The legislature determines that there is in the community use of school facilities special fund at least $1,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the community use of school facilities special fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 33. The legislature determines that there is in the federal grants search, development, and application revolving fund at least $500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the federal grants search, development, and application revolving fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 34. The legislature determines that there is in the health care revolving fund at least $916,284 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the health care revolving fund to the general fund the sum of $916,284 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 35. The legislature determines that there is in the mental health and substance abuse special fund at least $2,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the mental health and substance abuse special fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 36. The legislature determines that there is in the drug demand reduction assessments special fund at least $700,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the drug demand reduction assessments special fund to the general fund the sum of $700,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 37. The legislature determines that there is in the neurotrauma special fund at least $250,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the neurotrauma special fund to the general fund the sum of $250,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 38. The legislature determines that there is in the environmental management special fund at least $750,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the environmental management special fund to the general fund the sum of $750,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 39. The legislature determines that there is in the deposit beverage container deposit special fund at least $300,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the deposit beverage container deposit special fund to the general fund the sum of $300,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 40. The legislature determines that there is in the newborn metabolic screening special fund at least $150,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the newborn metabolic screening special fund to the general fund the sum of $150,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 41. The legislature determines that there is in the trauma system special fund at least $1,000,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the trauma system special fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 42. The legislature determines that there is in the employment and training fund at least $700,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the employment and training fund to the general fund the sum of $700,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 43. The legislature determines that there is in the special unemployment insurance administrative fund at least $1,500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the special unemployment insurance administrative fund to the general fund the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

SECTION 44. The legislature determines that there is in the premium supplemental fund at least $500,000 in excess of the requirements of the fund. On June 30, 2011, the director of finance is authorized to transfer from the premium supplemental fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2010-2011.

PART IV

CONFORMING AMENDMENTS

SECTION 45. Section 28-8.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

[~~(7)~~ ~~By the trustees for any action involving the travel agency recovery fund;~~

~~(8)~~] (7) By the office of Hawaiian affairs;

[~~(9)~~] (8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

[~~(10)~~] (9) As grand jury counsel;

[~~(11)~~] (10) By the Hawaiian home lands trust individual claims review panel;

[~~(12)~~] (11) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

[~~(13)~~] (12) By the auditor;

[~~(14)~~] (13) By the office of ombudsman;

[~~(15)~~] (14) By the insurance division;

[~~(16)~~] (15) By the University of Hawaii;

[~~(17)~~] (16) By the Kahoolawe island reserve commission;

[~~(18)~~] (17) By the division of consumer advocacy;

[~~(19)~~] (18) By the office of elections;

[~~(20)~~] (19) By the campaign spending commission;

[~~(21)~~] (20) By the Hawaii tourism authority, as provided in section 201B-2.5;

[~~(22)~~] (21) By the division of financial institutions for any action involving the mortgage loan recovery fund; or

[~~(23)~~] (22) By a department, in the event the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor [~~thereupon~~] waives the provision of this section."

SECTION 46. Section 167-19, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) All or any portion of the acreage assessments collected under this chapter, as determined by the board, exclusive of acreage assessments imposed on lands within an irrigation project financed through the issuance of revenue bonds, shall be deposited into the irrigation system revolving fund. Acreage assessments imposed on lands within an irrigation project financed through the issuance of revenue bonds shall be deposited into the [~~irrigation water development special fund.~~] general fund."

SECTION 47. Section 167-22, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the irrigation system revolving fund, into which shall be deposited:

(1) All legislative appropriations to the irrigation system revolving fund; and

(2) All or any portion of the receipts and revenues collected under this chapter, as determined by the board of agriculture [~~, exclusive of the receipts and revenues deposited into the irrigation water development special fund~~]."

SECTION 48. Section 235-110.93, Hawaii Revised Statutes, is amended to read as follows:

"[[]§235-110.93[]] Important agricultural land qualified agricultural cost tax credit. (a) There shall be allowed to each taxpayer an important agricultural land qualified agricultural cost tax credit that may be claimed in taxable years beginning after the taxable year during which the tax credit under section 235-110.46 is repealed, exhausted, or expired. The credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. The tax credit amount shall be determined as follows:

(1) In the first year in which the credit is claimed, twenty-five per cent of the lesser of the following:

(A) The qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

(B) $625,000;

(2) In the second year in which the credit is claimed, fifteen per cent of the lesser of the following:

(A) The qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

(B) $250,000; and

(3) In the third year in which the credit is claimed, ten per cent of the lesser of the following:

(A) The qualified agricultural costs incurred by the taxpayer after July 1, 2008; or

(B) $125,000.

The taxpayer may incur qualified agricultural costs during a taxable year in anticipation of claiming the credit in future taxable years during which the credit is available. The taxpayer may claim the credit in any taxable year after the taxable year during which the taxpayer incurred the qualified agricultural costs upon which the credit is claimed. The taxpayer also may claim the credit in consecutive or inconsecutive taxable years until exhausted.

(b) No other credit may be claimed under this chapter for qualified agricultural costs for which a credit is claimed under this section for the taxable year.

[(c) The amount of the qualified agricultural costs eligible to be claimed under this section shall be reduced by the amount of funds received by the taxpayer during the taxable year from the irrigation repair and maintenance special fund under section 167-24.

~~(d)~~] (c) The cost upon which the tax credit is computed shall be determined at the entity level. In the case of a partnership, S corporation, estate, trust, or other pass through entity, distribution and share of the credit shall be determined pursuant to section 235-110.7(a).

If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code, no tax credit shall be allowed for that portion of the qualified agricultural cost for which a deduction was taken.

The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. No deduction shall be allowed for that portion of otherwise deductible qualified agricultural costs on which a credit is claimed under this section.

[~~(e)~~] (d) If the credit under this section exceeds the taxpayer's net income tax liability for the taxable year, the excess of the credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the credits allowed by this section shall be made for amounts less than $1.

All claims for a tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit is claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

[~~(f)~~] (e) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a credit under this section;

(2) May require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section; and

(3) May adopt rules pursuant to chapter 91 to effectuate this section.

[~~(g)~~] (f) The department of agriculture shall:

(1) Maintain records of the total amount of qualified agricultural costs for each taxpayer claiming a credit;

(2) Verify the amount of the qualified agricultural costs claimed;

(3) Total all qualified agricultural costs claimed; and

(4) Certify the total amount of the tax credit for each taxable year.

Upon each determination, the department of agriculture shall issue a certificate to the taxpayer verifying the qualifying agricultural costs and the credit amount certified for each taxable year. For a taxable year, the department of agriculture may certify a credit for a taxpayer who could have claimed the credit in a previous taxable year, but chose not to because the maximum annual credit amount under subsection (h) was reached in that taxable year.

The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation. Notwithstanding the department of agriculture's certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts.

Notwithstanding any other law to the contrary, the information required by this subsection shall be available for public inspection and dissemination under chapter 92F.

[~~(h)~~] (g) If in any taxable year the annual amount of certified credits reaches $7,500,000 in the aggregate, the department of agriculture shall immediately discontinue certifying credits and notify the department of taxation. In no instance shall the department of agriculture certify a total amount of credits exceeding $7,500,000 per taxable year. To comply with this restriction, the department of agriculture shall certify credits on a first come, first served basis.

The department of taxation shall not allow the aggregate amount of credits claimed to exceed that amount per taxable year.

[~~(i)~~] (h) The department of agriculture, in consultation with the department of taxation, shall annually determine the information necessary to provide a quantitative and qualitative assessment of the outcomes of the tax credit.

Every taxpayer, no later than the last day of the taxable year following the close of the taxpayer's taxable year in which the credit is claimed, shall submit a certified written statement to the department of agriculture. Failure to provide the information shall result in ineligibility and a recapture of any credit already claimed for that taxable year. The amount of the recaptured tax credit shall be added to the taxpayer's tax liability for the taxable year in which the recapture occurs.

Notwithstanding any law to the contrary, a statement submitted under this subsection shall be a public document.

[~~(j)~~] (i) The department of agriculture, in consultation with the department of taxation, shall annually submit a report evaluating the effectiveness of the tax credit. The report shall include but not be limited to findings and recommendations to improve the effectiveness of the tax credit to further encourage the development of agricultural businesses.

[~~(k)~~] (j) As used in this section:

"Agricultural business" means any person with a commercial agricultural, silvicultural, or aquacultural facility or operation, including:

(1) The care and production of livestock and livestock products, poultry and poultry products, apiary products, and plant and animal production for nonfood uses;

(2) The planting, cultivating, harvesting, and processing of crops; and

(3) The farming or ranching of any plant or animal species in a controlled salt, brackish, or freshwater environment;

provided that the principal place of the agricultural business is maintained in the State and more than fifty per cent of the land the agricultural business owns or leases, excluding land classified as conservation land, is important agricultural land.

"Important agricultural lands" means lands identified and designated as important agricultural lands pursuant to part III of chapter 205.

"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

"Qualified agricultural costs" means expenditures for:

(1) The plans, design, engineering, construction, renovation, repair, maintenance, and equipment for:

(A) Roads or utilities, primarily for agricultural purposes, where the majority of the lands serviced by the roads or utilities, excluding lands classified as conservation lands, are important agricultural lands;

(B) Agricultural processing facilities in the State, primarily for agricultural purposes, where the majority of the crops or livestock processed, harvested, treated, washed, handled, or packaged are from agricultural businesses;

(C) Water wells, reservoirs, dams, water storage facilities, water pipelines, ditches, or irrigation systems in the State, primarily for agricultural purposes, providing water for lands, the majority of which, excluding lands classified as conservation lands, are important agricultural lands; and

(D) Agricultural housing in the State, exclusively for agricultural purposes; provided that:

(i) The housing units are occupied solely by farmers or employees for agricultural businesses and their immediate family members;

(ii) The housing units are owned by the agricultural business;

(iii) The housing units are in the general vicinity, as determined by the department of agriculture, of agricultural lands owned or leased by the agricultural business; and

(iv) The housing units conform to any other conditions that may be required by the department of agriculture;

(2) Feasibility studies, regulatory processing, and legal and accounting services related to the items under paragraph (1);

(3) Equipment, primarily for agricultural purposes, used to cultivate, grow, harvest, or process agricultural products by an agricultural business; and

(4) Regulatory processing, studies, and legal and other consultant services related to obtaining or retaining sufficient water for agricultural activities and retaining the right to farm on lands identified as important agricultural lands.

[~~(l)~~] (k) The department of agriculture shall cease certifying credits pursuant to this section after the fourth taxable year following the taxable year during which the credits are first claimed; provided that a taxpayer with accumulated, but unclaimed, certified credits may continue claiming the credits in subsequent taxable years until exhausted.

[~~[(m)]~~] (l) The department of taxation, in consultation with the department of agriculture, shall submit to the legislature an annual report, no later than twenty days prior to the convening of each regular session, beginning with the regular session of 2010, regarding the quantitative and qualitative assessment of the impact of the important agricultural land qualified agricultural cost tax credit."

SECTION 49. Section 321-355, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The fund shall consist of grants and income earned by the special fund. [~~Notwithstanding section 29-24, all~~] All program income consisting of federal reimbursement funds received by the State for early intervention funded by legislative appropriations under this part shall be deposited into the special fund; provided that no state appropriations shall be deposited into the special fund."

SECTION 50. Section 321-356, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The trust fund shall consist of government grants and private contributions including but not limited to gifts or donations from corporations or other businesses, foundations, individuals, and other interested parties, and income earned by the trust fund. [~~Notwithstanding section 29-24, all~~] All program income consisting of federal reimbursement funds received by the State for early intervention funded by private donations and contributions under this part shall be deposited into the trust fund."

SECTION 51. Section 431:22-103, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:22-103[]] Establishment of loss mitigation grant program. The commissioner shall develop and implement a pilot grant program to encourage the installation of wind resistive devices. The commissioner may spend up to $6,000,000 [~~from the loss mitigation grant fund~~] over three years for the grant program, which amounts shall include the costs of administering, operating, and marketing the grant program.

For the first year of the grant program, the commissioner may make grants only to former policyholders of the Hawaii hurricane relief fund. From the second year onward, the commissioner may also make grants to all single or multi-family residential owners, which may include owners of townhouse units or condominium apartments under section 431:22-104(c)(3)."

SECTION 52. Section 431P-16, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:

"(i) Moneys in the hurricane reserve trust fund may be[:

~~(1)~~ ~~Disbursed~~] disbursed upon dissolution of the Hawaii hurricane relief fund; provided that:

[~~(A)~~] (1) The net moneys in the hurricane reserve trust fund shall revert to the state general fund after payments by the fund on behalf of licensed property and casualty insurers or the State that are required to be made pursuant to any federal disaster insurance program enacted to provide insurance or reinsurance for hurricane risks are completed; and

[~~(B)~~] (2) If such moneys are paid on behalf of licensed property and casualty insurers, payment shall be made in proportion to the premiums from policies of hurricane property insurance serviced by the insurers in the twelve months prior to dissolution of the fund; [or

~~(2)~~ ~~Deposited to the loss mitigation grant fund established under section 431:22-102;~~]

provided that all interest earned from the principal in the hurricane reserve trust fund shall be transferred and deposited into the general fund each year that the hurricane reserve trust fund remains in existence."

SECTION 53. Section 431P-16.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431P-16.5[~~] Transfer of funds; immunity~~] Immunity. There shall be no cause of action, claim for damages or relief, charge, or any other liability of any kind whatsoever created against the State, the Hawaii hurricane relief fund, the commissioner, or their respective agents, employees, or board, by, or relating to[~~, the transfer of any moneys from the hurricane reserve trust fund to the loss mitigation grant fund or from the loss mitigation grant fund to the hurricane reserve trust fund or involving~~] the loss mitigation grant program."

PART V

OTHER REPEALED FUNDS

SECTION 54. Part XIII of chapter 346, Hawaii Revised Statutes is repealed.

SECTION 55. Part XV of chapter 346, Hawaii Revised Statutes, is repealed.

SECTION 56. Section 29-24, Hawaii Revised Statutes, is repealed.

["~~§29-24 Interagency federal revenue maximization revolving fund.~~ (a) There is established in the state treasury an interagency federal revenue maximization revolving fund, into which shall be deposited all funds and proceeds collected from the federal government and third-party payers for costs not previously claimed by the State, with the exception of proceeds collected for services provided by the Hawaii health systems corporation or its regional system boards, for reimbursement of federally-funded state programs. For purposes of this chapter, federally-funded state programs include but shall not be limited to those federally-funded programs within the departments of human services and health, and shall not include the federally-funded program within the department of education as provided in section 302A-1406. Expenditures and transfers from the fund shall be made by the comptroller in proportional allocations established by the comptroller and the director of finance. Transfers shall be made to the department claiming the reimbursement for expenses incurred related to federal fund reimbursement claims and to the general fund of the State. Moneys in the fund may be expended for consultant services rendered under subsection (b).

(b) Notwithstanding any other law to the contrary, the comptroller, by contract, may retain the services of certified public accountants and other consultants to pursue and collect federal fund reimbursements, and perform other duties necessary to administer this section. At the option of the comptroller, consultants retained by contract under this subsection may be compensated on:

~~(1)~~ ~~A fixed-price basis;~~

~~(2)~~ ~~An hourly rate basis with or without a fixed cap; or~~

~~(3)~~ ~~Through a contingent fee arrangement specified in the contract.~~

~~Such compensation shall be payable out of all sums the consultant recovers for the State.~~

~~(c) No later than twenty days prior to the convening of each regular session of the legislature, the comptroller shall submit to the legislature a report including the following information:~~

~~(1)~~ ~~Itemized amounts of all federal reimbursements;~~

~~(2)~~ ~~Description and amounts of all expenses incurred by the fund;~~

~~(3)~~ Method of compensation and amounts of compensation for all certified public accountants and other consultants retained by the comptroller to pursue and collect federal fund reimbursements and perform other duties necessary to administer this section;

~~(4)~~ ~~Method of determining allocation of funds;~~

~~(5)~~ ~~Amounts allocated by the comptroller; and~~

~~(6)~~ ~~Fund balances.~~"]

SECTION 57. Section 167-22.5, Hawaii Revised Statutes, is repealed.

["~~[§167-22.5]~~ Irrigation water development special fund. (a) There is established in the state treasury the irrigation water development special fund, into which shall be deposited:

~~(1)~~ ~~Appropriations by the legislature to the irrigation water development special fund;~~

~~(2)~~ ~~All receipts and revenues derived from irrigation projects financed through the issuance of revenue bonds;~~

~~(3)~~ All or any portion of the receipts and revenues collected under this chapter, as determined by the board, whether or not receipts or revenues are derived from irrigation projects financed through the issuance of revenue bonds; and

~~(4)~~ ~~Interest earned or accrued on moneys in the irrigation water development special fund.~~

~~(b) Moneys in the irrigation water development special fund shall be used by the board for the following purposes:~~

~~(1)~~ ~~Planning, design, improvement, construction, land acquisition, and equipment necessary for the development, operation, or maintenance of an irrigation project;~~

~~(2)~~ ~~Payment of debt service on revenue bonds issued by the department for irrigation project purposes, and the establishment of debt service and other revenues deemed necessary by the board;~~

~~(3)~~ Reimbursement of the general fund for debt service on general obligation bonds issued to finance irrigation projects where the bonds are designated to be reimbursable out of the irrigation water development special fund; and

~~(4)~~ ~~Any other purpose deemed necessary by the board for the purpose of planning, designing, improving, constructing, developing, operating, and maintaining irrigation projects.~~"]

SECTION 58. Section 167-24, Hawaii Revised Statutes, is repealed.

["~~[§167-24] Irrigation repair and maintenance special fund.~~ ~~(a) There is established in the state treasury the irrigation repair and maintenance special fund that shall be administered by the board.~~

~~(b) Moneys in the irrigation repair and maintenance special fund shall be used to fund repair and maintenance of the following irrigation systems:~~

~~(1)~~ ~~East Kauai irrigation system;~~

~~(2)~~ ~~Kekaha ditch;~~

~~(3)~~ ~~Kokee ditch;~~

~~(4)~~ ~~Maui Land/Pioneer Mill irrigation system;~~

~~(5)~~ ~~Waiahole ditch;~~

~~(6)~~ ~~Lower Hamakua irrigation system;~~

~~(7)~~ ~~Molokai irrigation system;~~

~~(8)~~ ~~Upcountry Maui irrigation system;~~

~~(9)~~ ~~Waimanalo irrigation system;~~

~~(10)~~ ~~Waimea irrigation system;~~

~~(11)~~ ~~East Maui irrigation system;~~

~~(12)~~ ~~Kauai coffee irrigation system;~~

~~(13)~~ ~~West Maui irrigation system;~~

~~(14)~~ ~~Kau irrigation system;~~

~~(15)~~ ~~Honomalino irrigation system;~~

~~(16)~~ ~~Wahiawa reservoir and ditch system; and~~

~~(17)~~ ~~Other privately-owned irrigation systems on former sugarcane and pineapple plantation lands that have been converted to diversified agriculture.~~

~~(c) The irrigation repair and maintenance special fund shall be funded by legislative appropriations, including general obligation bond funds and federal funds.~~

~~(d) Landowners may apply for funding assistance from the irrigation repair and maintenance special fund; provided that the landowner:~~

~~(1)~~ ~~Provides matching funding equal to the amount received from the irrigation repair and maintenance special fund;~~

~~(2)~~ Agrees to file a petition for declaratory ruling pursuant to section 205-45 designating a majority of all land served by the water produced by the irrigation system as important agricultural lands as defined under section 205-42 and notifies the board and county of the petition and designation for the purpose of inclusion on maps; and

~~(3)~~ ~~Agrees to use, or provide for the use of, all lands owned or controlled by the landowner and served by the water produced by the irrigation system for agricultural production.~~

The board shall develop processes, policies, standards, and criteria for selecting the landowners that are to receive funding and the amount of such funding. The board shall also develop processes, policies, standards, and criteria for determining the amount of funding provided to irrigation systems in subsection (b) owned by the State.

~~(e) As used in this section:~~

"Diversified agriculture" means agricultural operations that produce diversified agricultural products, including flowers, nursery products, vegetables, herbs, melons, seed crops, macadamia nuts, aquaculture, coffee, milk, cattle, eggs, hogs, and fruit.

~~"Irrigation system" means the agricultural system of intakes, diversions, wells, ditches, siphons, pipes, reservoirs, and accessory facilities established to provide water for agricultural production.~~

~~"Landowner" means a private entity that:~~

~~(1)~~ Owns agricultural land, formerly used as a sugarcane or pineapple plantation, that contains a privately-owned irrigation system that is necessary for the sustained production of diversified agriculture on the land served by the irrigation system; or

~~(2)~~ ~~Owns, or partially owns, an irrigation system listed in subsection (b)(1) through (17).~~"]

SECTION 59. Section 346C-5, Hawaii Revised Statutes, is repealed.

["~~[§346C-5]Long-term care benefits fund.~~ (a) There is established in the state treasury the long-term care benefits fund, into which shall be deposited moneys collected as long-term care taxes. The department of budget and finance shall deposit the moneys in federally insured financial institutions in Hawaii to preserve the balance and ensure a reasonable return under prevailing interest rates. Investments of the moneys may be made subject to the requirements of this chapter.

~~(b) Expenditures from the fund shall be made solely for the purpose of making benefit payments and the cost of administration.~~

~~(c) Notwithstanding any law to the contrary, moneys in the fund shall not be transferred to another fund at any time nor for any purpose.~~

~~(d) Costs for the administration of the program shall be paid from moneys in the long-term care benefits fund as follows:~~

~~(1)~~ ~~Up to four per cent of the total monthly deposit into the fund to cover general administrative expenses; and~~

~~(2)~~ ~~Up to four per cent of the total monthly amount of claims paid out from the fund may be used to pay for administrative expenses related to claims processing.~~"]

SECTION 60. Section 431:22-102, Hawaii Revised Statutes, is repealed.

["~~§431:22-102 Loss mitigation grant fund.~~ (a) There is established a special fund to be designated as the loss mitigation grant fund. Moneys transferred to the loss mitigation grant fund may be expended by the commissioner to carry out the commissioner's duties and obligations under this article. Disbursements from the loss mitigation grant fund shall not be subject to chapter 42F or 91.

(b) The loss mitigation grant fund may be used by the commissioner to make loss mitigation grants authorized under this article. The loss mitigation grant fund shall also be used by the commissioner to pay for any administrative and operational costs, including personnel costs and marketing costs, associated with a loss mitigation grant program. Any law to the contrary notwithstanding, the commissioner may use the moneys in the loss mitigation grant fund to employ or retain, by contract or otherwise, without regard to chapters 76 and 78, necessary professional, expert, managerial, technical, and support personnel to implement and carry out the purposes of this article.

(c) The commissioner shall prepare an annual report to the director, governor, and the legislature on the use of the loss mitigation grant fund. The report shall provide statistical information on program participation. The report shall be submitted to the legislature no later than twenty days prior to the convening of each regular legislative session."]

PART VI

COMPLIANCE RESOLUTION FUND – BOND REIMBURSEMENTS

SECTION 61. Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (o) to read as follows:

"(o) Every person licensed under any chapter within the jurisdiction of the department of commerce and consumer affairs and every person licensed subject to chapter 485A or registered under chapter 467B shall pay upon issuance of a license, permit, certificate, or registration a fee and a subsequent annual fee to be determined by the director and adjusted from time to time to ensure that the proceeds, together with all other fines, income, and penalties collected under this section, do not surpass the annual operating costs of conducting compliance resolution activities required under this section. The fees may be collected biennially or pursuant to rules adopted under chapter 91, and shall be deposited into the special fund established under this subsection. Every filing pursuant to chapter 514E or section 485A-202(a)(26) shall be assessed, upon initial filing and at each renewal period in which a renewal is required, a fee that shall be prescribed by rules adopted under chapter 91, and that shall be deposited into the special fund established under this subsection. Any unpaid fee shall be paid by the licensed person, upon application for renewal, restoration, reactivation, or reinstatement of a license, and by the person responsible for the renewal, restoration, reactivation, or reinstatement of a license, upon the application for renewal, restoration, reactivation, or reinstatement of the license. If the fees are not paid, the director may deny renewal, restoration, reactivation, or reinstatement of the license. The director may establish, increase, decrease, or repeal the fees when necessary pursuant to rules adopted under chapter 91. The director may also increase or decrease the fees pursuant to section 92-28.

There is created in the state treasury a special fund to be known as the compliance resolution fund to be expended by the director's designated representatives as provided by this subsection. Notwithstanding any law to the contrary, all revenues, fees, and fines collected by the department shall be deposited into the compliance resolution fund. Unencumbered balances existing on June 30, 1999, in the cable television fund under chapter 440G, the division of consumer advocacy fund under chapter 269, the financial institution examiners' revolving fund, section 412:2-109, the special handling fund, section 414-13, and unencumbered balances existing on June 30, 2002, in the insurance regulation fund, section 431:2-215, shall be deposited into the compliance resolution fund. This provision shall not apply to the drivers education fund underwriters fee, sections 431:10C-115 and 431:10G-107, insurance premium taxes and revenues, revenues of the workers' compensation special compensation fund, section 386-151, the captive insurance administrative fund, section 431:19-101.8, the insurance commissioner's education and training fund, section 431:2-214, the medical malpractice patients' compensation fund as administered under section 5 of Act 232, Session Laws of Hawaii 1984, and fees collected for deposit in the office of consumer protection restitution fund, section 487-14, the real estate appraisers fund, section 466K-1, the real estate recovery fund, section 467-16, the real estate education fund, section 467-19, the contractors recovery fund, section 444-26, the contractors education fund, section 444-29, and the condominium education trust fund, section 514B-71. Any law to the contrary notwithstanding, the director may use the moneys in the fund to employ, without regard to chapter 76, hearings officers and attorneys. All other employees may be employed in accordance with chapter 76. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the department[.]; provided that, beginning on June 1, 2011, the director of finance shall transfer moneys from the fund to retroactively fund all interest payments on general obligation bonds issued for the purposes of assisting the operations of the department of commerce and consumer affairs through infrastructure improvements and shall collect payment for the interest on the general obligation bonds from the fund each year thereafter. The moneys in the fund may be used to train personnel as the director deems necessary and for any other activity related to compliance resolution.

As used in this subsection, unless otherwise required by the context, "compliance resolution" means a determination of whether:

(1) Any licensee or applicant under any chapter subject to the jurisdiction of the department of commerce and consumer affairs has complied with that chapter;

(2) Any person subject to chapter 485A has complied with that chapter;

(3) Any person submitting any filing required by chapter 514E or section 485A-202(a)(26) has complied with chapter 514E or section 485A-202(a)(26);

(4) Any person has complied with the prohibitions against unfair and deceptive acts or practices in trade or commerce; or

(5) Any person subject to chapter 467B has complied with that chapter;

and includes work involved in or supporting the above functions, licensing, or registration of individuals or companies regulated by the department, consumer protection, and other activities of the department.

The director shall prepare and submit an annual report to the governor and the legislature on the use of the compliance resolution fund. The report shall describe expenditures made from the fund including non-payroll operating expenses."

PART VII

COMPLIANCE RESOLUTION FUND - BANKS

SECTION 62. The purpose of this part is to address the taxation of banks and other financial corporations by repealing the requirement that tax revenues from the banking industry be deposited into the compliance resolution fund.

SECTION 63. Section 241-7, Hawaii Revised Statutes, is amended to read as follows:

"§241-7 Disposition of funds. All taxes collected under this chapter shall be state realizations[; provided that, by June 30 of each fiscal year, the sum of $2,000,000 shall be deposited with the director of finance to the credit of the compliance resolution fund as established pursuant to section 26-9(o).] that shall be deposited into the general fund."

SECTION 64. (a) Between July 1, 2011, and December 31, 2011, the commissioner of financial institutions may adopt rules to impose or increase fees charged to banks and other financial corporations under chapter 412, Hawaii Revised Statutes, without regard to the public notice and public hearing requirements of chapter 91, Hawaii Revised Statutes, the small business regulatory review requirements of chapter 201M, Hawaii Revised Statutes, or the limit on fee increases under section 92-28, Hawaii Revised Statutes.

(b) After December 31, 2011, any subsequent amendments to the rules adopted or amended pursuant to subsection (a) shall be subject to all applicable provisions of chapter 91, chapter 201M, and section 92-28, Hawaii Revised Statutes.

THE SENATE	S.B. NO.	120
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 1
STATE OF HAWAII		H.D. 1