HOUSE OF REPRESENTATIVES	H.B. NO.	535
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to THE BUDGET.

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

     SECTION 1.  Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§37-   Reporting of intended material changes to expenses, programs, projects, or capital improvement projects. (a)  Prior to the implementation of any material change to an expense, program, project, or capital improvement project for which the legislature has already appropriated funds, the director of finance shall submit a report to the legislature that includes the projected amount of the cost variance and reasons for the intended material change.

(b)  For the purposes of this section, "material change" means:

(1) A modification to an expense, program, project, or capital improvement project that totals at least       per cent of the total amount appropriated by the legislature for that expense, program, project, or capital improvement project, where the total amount appropriated by the legislature shall include the portion that is designated for the works of art special fund, pursuant to section 103‑8.5; or

(2) A modification to the original description, scope, or purpose of an expense, program, project, or capital improvement project."

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

"(b)  Prior to the implementation of any modification in allotment proposed by the director of finance pursuant to subsection (a), in which the sum of the modifications exceed [2.5] per cent of the total general fund appropriation made by the legislature in any fiscal year, the director shall notify the president of the senate, the speaker of the house of representatives, and the chairpersons of the senate committee on ways and means and the house of representatives committee on finance, respectively, of the director's intent.  The notification shall not replace the reporting requirement for any material change to an expense, program, project, or capital improvement project for which the legislature has already appropriated funds, pursuant to section 37‑  ."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Modifications to Legislative Appropriations; Reporting

Description:

Requires the director of finance to report to the legislature the total amount and reasons for any material change to an expense, program, project, or capital improvement project for which the legislature has already appropriated funds.  Defines "material change."  Amends the threshold for reporting modifications to allotments proposed by the director of finance.

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