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

A BILL FOR AN ACT

RELATING TO STATE FUNDS.

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

PART I

     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  The legislature finds that certain funds, established by statutes that have long been repealed, are effectively non-functional.  The legislature further finds that since the statutory purposes for which these funds were established have been repealed, these funds have outlived their usefulness to the State.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.  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 3.  On July 1, 2011:

     (1)  All moneys in the travel agency recovery fund, the travel agency education fund, and the patients' compensation 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, the travel agency education fund, and the patients' compensation fund shall cease to exist.

PART II

     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[]], 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-2252, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2252[]]  Child care programs [revolving] special fund.  There is established a child care programs [revolving] 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 [revolving] special fund.  Expenditures from the [revolving] 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."

     SECTION 6.  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] special fund [and the University of Hawaii housing assistance revolving 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 7.  Section 304A-2254, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2254[]]  Discoveries and inventions [revolving] special fund.  There is established a discoveries and inventions [revolving] 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."

     SECTION 8.  Section 304A-2259, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2259[]]  University of Hawaii alumni [revolving] special fund.  There is established the University of Hawaii alumni [revolving] 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 [revolving] special 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 9.  Section 304A-2261, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2261[]]  University of Hawaii at Manoa intercollegiate athletics [revolving] special fund and University of Hawaii at Hilo intercollegiate athletics [revolving] special fund.  Notwithstanding any other law to the contrary, there are established the University of Hawaii at Manoa intercollegiate athletics [revolving] special fund and the University of Hawaii at Hilo intercollegiate athletics [revolving] 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 [revolving] special funds.

     The university shall maintain the financial integrity and viability of these [revolving] 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."

     SECTION 10.  Section 304A-2262, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2262[]]  Animal research farm, Waialee, Oahu [revolving] special fund.  There is established the animal research farm, Waialee, Oahu [revolving] 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 [revolving] special fund shall be expended for animal research, and services and supplies related thereto."

     SECTION 11.  Section 304A-2271, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2271[]]  University of Hawaii-Hilo theatre [revolving] special fund.  There is established the University of Hawaii-Hilo theatre [revolving] 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 [revolving] 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, leis, rental or purchase of equipment, and theater supplies and materials."

     SECTION 12.  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 13.  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 14.  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 15.  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 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-2353, Hawaii Revised Statutes, is repealed.

["[§304A-2353]  The Senator Hiram L. Fong scholarship program; endowment trust.  (a)  There is established the Senator Hiram L. Fong scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

(b)  Awards shall be granted annually to one female student and one male student who:

(1) Are graduates of a public high school in the State;

(2) Are upperclassmen at the university;

(3) Submit winning essays to the board of regents on the senator's contributions to Hawaii;

(4) Have a demonstrated commitment to local community issues, as shown by volunteer work and participation in community organizations; and

(5) Have a demonstrated interest and knowledge of the history of immigration to Hawaii.

(c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

(1) Pay for the costs of tuition and fees for a single academic year;

(2) Pay for the costs of textbooks and other instructional materials for a single academic year;

(3) Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

(4) Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

(d)  The board of regents shall adopt rules to implement the Senator Hiram L. Fong scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

(e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Hiram L. Fong scholarship program."]

     SECTION 18.  Section 304A-2354, Hawaii Revised Statutes, is repealed.

["[§304A-2354]  The Senator Oren E. Long scholarship program; endowment trust.  (a)  There is established the Senator Oren E. Long scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

(b)  Awards shall be granted annually to one female student and one male student who:

(1) Are graduates of a public high school in the State;

(2) Are upperclassmen at the university; and

(3) Submit winning essays to the board of regents on the senator's contributions to Hawaii.

(c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

(1) Pay for the costs of tuition and fees for a single academic year;

(2) Pay for the costs of textbooks and other instructional materials for a single academic year;

(3) Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

(4) Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

(d)  The board of regents shall adopt rules to implement the Senator Oren E. Long scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

(e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Oren E. Long scholarship program."]

     SECTION 19.  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 general fund.

     SECTION 20.  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 21.  The conversion of revolving funds to special funds pursuant to sections 5, 7, 8, 9, 10, and 11 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

     SECTION 22.  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 2011-2012.

     The purpose of this part is to help address the fiscal year 2011-2012 budget shortfall by transferring excess balances from various non-general funds into the State's general fund.

     SECTION 23.  The legislature determines that there is in the state risk management revolving fund at least $600,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the state risk management revolving fund to the general fund the sum of $600,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 24.  The legislature determines that there is in the medicaid investigations recovery fund at least $688,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the state medicaid investigations recovery fund to the general fund the sum of $688,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 25.  The legislature determines that there is in the convention center enterprise special fund at least $500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the convention center enterprise special fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 26.  The legislature determines that there is in the tourism special fund at least $500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the tourism special fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 27.  The legislature determines that there is in the energy security special fund at least $500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the energy security special fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 28.  The legislature determines that there is in the statewide geospatial information and data integration special fund at least $500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the statewide geospatial information and data integration special fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 29.  The legislature determines that there is in the Hawaii community development revolving fund at least $2,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the Hawaii community development revolving fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 30.  The legislature determines that there is in the aloha tower fund at least $2,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the aloha tower fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 31.  The legislature determines that there is in the compliance resolution fund at least $1,500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the compliance resolution fund to the general fund the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 32.  The legislature determines that there is in the mental health and substance abuse special fund at least $4,323,731 in excess of the requirements of the fund.  On July 1, 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 $4,323,731 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 33.  The legislature determines that there is in the drug demand reduction assessments special fund at least $717,263 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the drug demand reduction assessments special fund to the general fund the sum of $717,263 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 34.  The legislature determines that there is in the neurotrauma special fund at least $400,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the neurotrauma special fund to the general fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 35.  The legislature determines that there is in the emergency medical services special fund at least $2,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the emergency medical services special fund to the general fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 36.  The legislature determines that there is in the electronic device recycling fund at least $500,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the electronic device recycling fund to the general fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 37.  The legislature determines that there is in the environmental management special fund at least $1,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the environmental management special fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 38.  The legislature determines that there is in the deposit beverage container deposit special fund at least $1,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the deposit beverage container deposit special fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 39.  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 July 1, 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 2011-2012.

     SECTION 40.  The legislature determines that there is in the special unemployment insurance administration fund at least $1,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the special unemployment insurance administration fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 41.  The legislature determines that there is in the special fund for disability benefits at least $1,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the special fund for disability benefits to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 42.  The legislature determines that there is in the special premium supplementation fund at least $1,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the special premium supplementation fund to the general fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 43.  The legislature determines that there is in the rental motor vehicle customer facility charge special fund at least $10,000,000 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the rental motor vehicle customer facility charge special fund to the general fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 44.  The legislature determines that there is in the rental assistance revolving fund at least $41,100 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the rental assistance revolving fund to the general fund the sum of $41,100 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 45.  The legislature determines that there is in the rental housing assistance fund at least $518,193 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the rental housing assistance fund to the general fund the sum of $518,193 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 46.  The legislature determines that there is in the travel agency recovery fund at least $22 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the travel agency recovery fund to the general fund the sum of $22 or so much thereof as may be necessary for fiscal year 2011-2012.

     SECTION 47.  The legislature determines that there is in the travel agency education fund at least $21,449 in excess of the requirements of the fund.  On July 1, 2011, the director of finance is authorized to transfer from the travel agency education fund to the general fund the sum of $21,449 or so much thereof as may be necessary for fiscal year 2011-2012.

PART IV

     SECTION 48.  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 49.  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 50.  Section 346-311, Hawaii Revised Statutes, is amended by amending the definition of "secondary discounted price" to read as follows:

     ""Secondary discounted price" as it pertains to a drug means the initial discounted price less any further discounts [paid out of the Rx plus special fund]."

     SECTION 51.  Section 346-344, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  For persons meeting the eligibility requirements in section 346-343, the state pharmacy assistance program may pay all or some of the co-payments required under the federal medicare part D pharmacy benefit program, [subject to the sufficiency of funds in the state pharmacy assistance program special fund,] as determined by the department.

     (b)  The state pharmacy assistance program is the payor of last resort [subject to the sufficiency of funds in the state pharmacy assistance program special fund], as determined by the department."

     SECTION 52.  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 53.  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 54.  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."

     SECTION 55.  Section 516-5, Hawaii Revised Statutes, is amended to read as follows:

     "§516-5  Penalty.  Any person who violates this chapter shall be fined not more than $5,000 nor less than $1,000 or imprisoned not more than one year, or both.  All fines collected shall be deposited in the general fund [fee simple [residential] revolving fund created by this chapter]."

     SECTION 56.  Section 516-45, Hawaii Revised Statutes, is amended to read as follows:

     "§516-45  General obligation bonds.  The director of finance may, from time to time, issue general obligation bonds in such amounts as may be authorized by the legislature, for the purpose of acquisition by the Hawaii housing finance and development corporation of residential houselots within development tracts pursuant to chapter 516, part II or for the acquisition of suitable properties to exchange pursuant to section 516-24.5 or for the acquisition by the department of land and natural resources under section 171-50.1 of suitable properties for exchange pursuant to section 171-50.2 to effectuate the purpose of this chapter.  The principal and interest of general obligation bonds issued pursuant to this section shall be reimbursed to the general fund [from the fee simple residential revolving fund as provided in section 516‑44].  Pending the receipt of funds from the issuance and sale of general obligation bonds, amounts required within the limits of legislative authorization may be advanced to the Hawaii housing finance and development corporation from the general fund of the State.  Upon the receipt of the bond funds, the general fund shall be reimbursed the amount advanced."

PART V

     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 304A-2257, Hawaii Revised Statutes, is repealed.

["[§304A-2257]  University of Hawaii student activities revolving fund.  (a)  There is established the University of Hawaii student activities revolving fund into which shall be deposited all funds assessed as compulsory student activity fees and collected by the University of Hawaii on behalf of chartered student organizations and student activity programs of the several campuses of the University of Hawaii system.  All revenues received by chartered student organizations and student activity programs from student activities and programs, except those revenues to which other special funds have prior claim, shall also be deposited into the revolving fund.

(b)  Separate accounts shall be maintained for each chartered student organization and student activity program.  Funds from the accounts may be withdrawn and expended by each respective chartered student organization or student activity program for any purpose that it deems necessary and proper to carry out and achieve its educational responsibilities, programs, and related activities; provided that approval for the expenditure is first obtained from the board of regents or its designated representative, except that approval is not required for expenditures for the purchase of flowers, leis, food, refreshments, and prizes if the purchases do not exceed an amount determined by policies adopted by the board of regents; and provided further that the amount shall not exceed the funds available to any chartered student organization or student activity program annually.

(c)  Other laws to the contrary notwithstanding, any chartered student organization may be permitted to withdraw and expend funds from the special accounts to employ or retain, by contract or otherwise, an attorney or attorneys only for the purpose of defending such organization in any litigation.  Any chartered student organization specifically organized to provide student publications or broadcast communications may also be permitted to withdraw and expend funds from the special accounts to employ or retain, by contract or otherwise, an attorney for the purpose of rendering legal advice to avoid lawsuits.  The expenditures in this subsection shall be approved by, and in accordance with policies adopted by, the board of regents.  No funds expended under this subsection may be used to defend chartered student organizations for any wilful or malicious act or to pay for any claim for loss or damage arising from the activities of the chartered student organizations, including costs, expenses, and liabilities incurred in connection with any claim or proceeding brought against a chartered student organization for damages resulting from the act or omission of a chartered student organization or any member thereof.  All moneys received for the University of Hawaii student activities revolving fund shall be deposited in a depository maintained by the university in accordance with policies that shall be adopted by the board of regents."]

     SECTION 60.  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 61.  Section 346-318, Hawaii Revised Statutes, is repealed.

["§346-318  Rx plus special fund.  (a)  There is established within the state treasury, to be administered by the department, the Rx plus special fund into which shall be deposited:

(1) All moneys received from manufacturers and labelers who pay rebates as provided in section 346-314;

(2) Appropriations made by the legislature to the fund; and

(3) Any other revenues designated for the fund.

(b)  Moneys in the Rx plus special fund shall be used for the following purposes:

(1) Reimbursement payments to participating pharmacies for discounts provided to program participants;

(2) The cost of administering the Rx plus program, including salary and benefits of employees, computer costs, and contracted services as provided in section 346-312; and

(3) Any other purpose deemed necessary by the department for the purpose of operating and administering the Rx plus program.

All interest on special fund balances shall accrue to the special fund.  Upon dissolution of the Rx plus special fund, any unencumbered moneys in the fund shall lapse to the credit of the general fund."]

     SECTION 62.  Section 346-345, Hawaii Revised Statutes, is repealed.

["[§346-345]  Special fund.  (a)  There is established within the state treasury to be administered by the department, the state pharmacy assistance program special fund, into which shall be deposited:

(1) All moneys received from manufacturers that pay rebates as provided in section 346-342(g);

(2) Appropriations made by the legislature to the fund; and

(3) Any other revenues designated for the fund.

(b)  Moneys in the state pharmacy assistance program special fund may be used for:

(1) Reimbursement payments to participating pharmacies for co-payments required under the federal medicare part D pharmacy benefit program as provided to state pharmacy assistance program participants;

(2) The costs of administering the state pharmacy assistance program, including salary and benefits of employees, computer costs, and contracted services as provided in section 346-342(d); and

(3) Any other purpose deemed necessary by the department for the purpose of operating and administering the state pharmacy [assistance] program.

All interest on special fund balances shall accrue to the special fund.  Upon dissolution of the state pharmacy assistance program special fund, any unencumbered moneys in the fund shall lapse to the general fund.

(c)  The department shall expend all revenues received from rebates paid by pharmaceutical manufacturers pursuant to section 346‑342(g) to pay for the benefits to enrollees in the state pharmacy assistance program, the costs of administering the program, and reimbursement of medicaid pharmaceutical costs."]

     SECTION 63.  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."]

     SECTION 64.  Section 516-44, Hawaii Revised Statutes, is repealed.

["§516-44  Fee simple residential revolving fund.  A fee simple residential revolving fund is created.  The funds appropriated for the purposes of this chapter and chapter 519 and all moneys received or collected by the Hawaii housing finance and development corporation under this chapter and chapter 519 shall be deposited in the revolving fund.  Moneys collected to reimburse the corporation from the lessees for their pro rata share of the direct costs incurred by the corporation under this chapter shall be deposited into the revolving fund.  The proceeds in the funds shall first be used to pay the principal and interest on bonds or other indebtedness issued by the corporation, or by the State, and then for necessary expenses, including indirect costs of the corporation in administering chapters 516 and 519.

Moneys in the fund shall be used to pay all costs of chapters 516 and 519 including administration."]

PART VI

     SECTION 65.  (a)  On July 1, 2011, the director of finance shall transfer any unencumbered balances remaining, as of June 30, 2011, in the special funds that are repealed in part V of this Act to the credit of the general fund.

     (b)  The director of finance shall identify any special funds that are repealed in parts II and V of this Act that contain or receive deposits from any federal funding source and is authorized to transfer the portions of those balances consisting of federal funds into corresponding separate special accounts within the general fund to enable the continuation of the purposes funded by the federal funding sources.

     SECTION 66.  It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

     SECTION 67.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 68.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 69.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 70.  This Act shall take effect on July 1, 2011.

Report Title:

Certain Special Funds; Certain Revolving Funds; Repeal

Description:

Repeals certain special funds and transfers balances to the general fund.  Converts certain revolving funds of the University of Hawaii into special funds.  (Proposed SD1)

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