HB79 SD1.DOC

SECTION 1. The purpose of this Act is to repeal, terminate, or close certain statutorily or administratively established revolving or trust funds that were clearly identified by the auditor for repeal, termination, or closure in the auditor's report no. 10-09, November 2010, to the legislature, entitled "Review of Revolving Funds, Trust Funds, and Trust Accounts of the Judiciary and the Departments of Commerce and Consumer Affairs, Hawaiian Home Lands, Health, and Human Services". Specifically, these funds are as follows:

(1) Pulama I Na ‘Opio O Hawaii trust fund;

(2) Travel agency recovery fund trust fund;

(3) Collections revolving funds;

(4) Federal maximization revolving fund;

(5) Hawaii public housing authority administration revolving fund;

(6) Health care revolving fund;

(7) Kahikolu ‘Ohana O Wai‘anae project trust fund; and

(8) Teacher's housing operating fund.

SECTION 2. Section 23-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§23-11[]] New special or revolving funds. (a) Within five days after the deadline for the introduction of bills in each legislative session, the [~~clerks~~] clerk of each house of the legislature shall transmit[,] to the [~~legislative~~] auditor for analysis, copies of all legislative bills that were introduced in their respective houses during that session that propose to establish new special or revolving funds.

(b) The criteria to be used by the auditor in analyzing each legislative bill shall include[~~, but not be limited to,~~] the extent to which the fund:

(1) Serves the purpose for which it is being created; and

(2) Reflects a clear link between the benefit sought and [~~changes~~] charges made upon the users or beneficiaries of the program, as opposed to serving primarily as a means to provide the program or users with an automatic means of support which is removed from the normal budget and appropriations process.

Each analysis shall set forth the probable effects of the proposed fund and shall also assess alternative forms of funding.

(c) No later than thirty days prior to the adjournment sine die of each legislative session, the [~~legislative~~] auditor shall submit the analysis of each transmitted legislative bill to each house of the legislature."

SECTION 3. Act 285, Session Laws of Hawaii 1991, is amended by amending section 4 to read as follows:

"SECTION 4. Effective October 1, 1991, all funds remaining in the travel agency recovery fund shall be held for disbursement to claimants pursuant to section 468K-5, Hawaii Revised Statutes, until the fund is exhausted; provided, however, that all such claims are limited to claims arising from travel services purchased prior to October 1, 1991; provided further that no lawsuit commenced on or after October 1, 1993, shall be effective to result in a recovery from the travel agency recovery fund.

Upon being notified of a civil proceeding that may result in a claim against the travel agency recovery fund, pursuant to section 468K-5, Hawaii Revised Statutes, the director shall reserve $8,000 for each licensee involved in each civil proceeding. The funds reserved shall be released only upon the entry of judgment and an order of payment, and shall be released and paid in accordance with the court's orders. Any reserved funds that remain after payment pursuant to court order shall revert to being unreserved funds within the travel agency recovery fund, subject to reservation in any future case.

All funds remaining in the travel agency recovery fund after the resolution of all civil proceedings commenced prior to October 1, 1993, if any, shall become part of the compliance resolution fund for use in travel agency-related cases[.]; provided that the travel agency recovery fund shall be closed on June 30, 2011."

SECTION 4. The judiciary shall terminate the administratively established Pulama I Na ‘Opio O Hawaii trust fund at the close of business on June 30, 2011.

SECTION 5. The Maui regional system board, the east Hawaii regional board, and the west Hawaii regional board of the Hawaii health systems corporation shall terminate their administratively established collections revolving funds at the close of business on June 30, 2011.

SECTION 6. The department of human services shall terminate the following administratively established revolving funds or trust funds:

(1) Federal maximization revolving fund;

(2) Hawaii public housing authority administration revolving fund; and

(3) Kahikolu ‘Ohana O Wai‘anae project trust fund;

at the close of business on June 30, 2011.

SECTION 7. The director of finance is authorized to transfer to the general fund any balances remaining as of June 30, 2011, in the following funds:

(1) Collections revolving funds;

(2) Federal maximization revolving fund;

(3) Health care revolving fund;

(4) Hawaii public housing authority administration revolving fund;

(5) Kahikolu ‘Ohana O Wai‘anae project trust fund;

(6) Pulama I Na ‘Opio O Hawaii trust fund; and

(7) Teacher's housing operating fund.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	79
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII		S.D. 1