HOUSE OF REPRESENTATIVES	H.B. NO.	1973
THIRTIETH LEGISLATURE, 2020		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO NON-GENERAL FUNDS.

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

PART I

SECTION 1. The purpose and intent of this Act is to repeal or reclassify certain non-general funds and accounts of the department of transportation pursuant to the recommendations or commentary by the auditor in auditor's report no. 19-05 and the accompanying summary and to transfer the unencumbered balances to the general fund.

PART II

SECTION 2. The purpose and intent of this part is to reclassify certain revolving funds of the department of transportation airports division.

SECTION 3. The following revolving funds are reclassified as trust accounts:

(1) The airport sinking fund for retire term bond revolving fund administratively created in 1969;

(2) The airport system debt service reserve account revolving fund administratively created in 1969;

(3) The airport system interest account revolving fund administratively created in 1969;

(4) The airport system major maintenance, renewal, and replacement account revolving fund administratively created in 1969;

(5) The airport system serial bond principal account revolving fund administratively created in 1969;

(6) The debt service funded coverage revolving fund administratively created in 1994;

(7) The reserve for airline rate mitigation revolving fund administratively created in 1994; and

(8) The reserve for operating and maintenance expenses revolving fund administratively created in 1994.

PART III

SECTION 4. The purpose and intent of this part is to reclassify, repeal, or abolish certain non-general funds of the department of transportation harbors division.

SECTION 5. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

[(7) Aloha Tower fund created by section 206J-17;

(8)] (7) Funds of the employees' retirement system created by section 88-109;

[(9)] (8) Hawaii hurricane relief fund established under chapter 431P;

[(10)] (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

[(11)] (10) Tourism special fund established under section 201B-11;

[(12)] (11) Universal service fund established under section 269-42;

[(13)] (12) Emergency and budget reserve fund under section 328L-3;

[(14)] (13) Public schools special fees and charges fund under section 302A-1130;

[(15)] (14) Sport fish special fund under section 187A-9.5;

[[(16)]] (15) Neurotrauma special fund under section 321H-4;

[[(17)]] (16) Glass advance disposal fee established by section 342G-82;

[[(18)]] (17) Center for nursing special fund under section 304A-2163;

[[(19)]] (18) Passenger facility charge special fund established by section 261-5.5;

[[(20)]] (19) Solicitation of funds for charitable purposes special fund established by section 467B-15;

[[(21)]] (20) Land conservation fund established by section 173A-5;

[[(22)]] (21) Court interpreting services revolving fund under section 607-1.5;

[[(23)]] (22) Trauma system special fund under section 321‑22.5;

[[(24)]] (23) Hawaii cancer research special fund;

[[(25)]] (24) Community health centers special fund;

[[(26)]] (25) Emergency medical services special fund;

[[(27)]] (26) Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[(28)]] (27) Shared services technology special fund under section 27-43;

[[(29)]] (28) Automated victim information and notification system special fund established under section 353-136;

[[(30)]] (29) Deposit beverage container deposit special fund under section 342G-104;

[[(31)]] (30) Hospital sustainability program special fund under [[]section 346G-4[]];

[[(32)]] (31) Nursing facility sustainability program special fund under [[]section 346F-4[]];

[[(33)]](32) Hawaii 3R's school improvement fund under section 302A-1502.4;

[[(34)]] (33) After-school plus program revolving fund under section 302A-1149.5; and

[[(35)]] (34) Civil monetary penalty special fund under section 321-30.2,

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 6. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Special funds established by section 206E-6;

[(6) Aloha Tower fund created by section 206J-17;

(7)] (6) Funds of the employees' retirement system created by section 88-109;

[(8)] (7) Hawaii hurricane relief fund established under chapter 431P;

[(9)] (8) Convention center enterprise special fund established under section 201B-8;

[(10)] (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

[(11)] (10) Tourism special fund established under section 201B-11;

[(12)] (11) Universal service fund established under section 269-42;

[(13)] (12) Emergency and budget reserve fund under section 328L-3;

[(14)] (13) Public schools special fees and charges fund under section 302A-1130;

[(15)] (14) Sport fish special fund under section 187A-9.5;

[[(16)]](15) Neurotrauma special fund under section 321H-4;

[[(17)]] (16) Center for nursing special fund under section 304A-2163;

[[(18)]] (17) Passenger facility charge special fund established by section 261-5.5;

[[(19)]] (18) Court interpreting services revolving fund under section 607-1.5;

[[(20)]] (19) Trauma system special fund under section 321-22.5;

[[(21)]] (20) Hawaii cancer research special fund;

[[(22)]] (21) Community health centers special fund;

[[(23)]] (22) Emergency medical services special fund;

[[(24)]] (23) Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[(25)]](24) Shared services technology special fund under section 27-43;

[[(26)]] (25) Nursing facility sustainability program special fund established pursuant to [[]section 346F-4[]];

[[(27)]] (26) Automated victim information and notification system special fund established under section 353-136;

[[(28)]] (27) Hospital sustainability program special fund under [[]section 346G-4[]]; and

[[(29)]] (28) Civil monetary penalty special fund under section 321-30.2,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 7. Section 206J-17, Hawaii Revised Statutes, is repealed.

["§206J-17 Aloha Tower fund. (a) There is created the Aloha Tower fund. All moneys, rentals, charges, other revenues of the development corporation, and moneys or charges received by the department of transportation, including reimbursements for costs and staff services as a result of planning, development, or redevelopment of the lands located seaward of Nimitz Highway between Pier 4 and Pier 11 shall be deposited into the fund.

(b) The development corporation may establish a separate account with respect to each issue of bonds issued under this chapter and direct that the moneys, rentals, charges, and other revenues pledged to the payment of the bond issue be credited to that account and, as permitted by section 206J-12(g)(7), designate a trustee to receive and receipt for, hold, and administer the moneys in the account. Moneys credited to a separate account held by a trustee may be paid directly to the trustee; provided that appropriate entries are made for purposes of accounting.

(c) The moneys on deposit in the fund shall be used for the purposes of this chapter, lease payments to the department of transportation, and for the development, redevelopment, or improvement of the Honolulu Waterfront located seaward of Nimitz Highway between Pier 4 and Pier 11."]

SECTION 8. The following revolving funds are reclassified as trust accounts:

(1) The 1997 certificate - harbor interest account revolving fund administratively created in 1997;

(2) The 1997 certificate - harbor principal account revolving fund administratively created in 1997;

(3) The 7th supplemental certificate 2010A debt service reserve fund principal revolving fund administratively created in 2010; and

(4) The harbor extraordinary renewal/replacement reserve account revolving fund administratively created in 1997.

SECTION 9. The risk management fire and casualty losses - harbors trust fund administratively created in 2006 is abolished and any remaining unencumbered balances shall lapse to the credit of the general fund.

SECTION 10. All unencumbered balances remaining in the Aloha tower fund repealed by this part shall lapse to the credit of the general fund.

PART IV

SECTION 11. The purpose and intent of this part is to reclassify, repeal, or abolish certain non-general funds of the department of transportation highways division.

SECTION 12. Section 264-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]§264-16[]] State highway clearing accounts. The director of transportation may with the prior approval of the director of finance and comptroller establish the state highway payroll clearing account, employee benefits clearing account, construction administration clearing trust account, and any other necessary clearing account or clearing trust account to effectively account for program costs and appropriations.

The director of transportation may, from time to time, make advances to the clearing accounts or clearing trust accounts from the state highway fund or from any moneys appropriated or otherwise made available to the department. The advances shall be in such amounts as may be required to meet the obligations of the department which are authorized by the legislature.

As soon as practicable after an expenditure from a clearing account[,] or clearing trust account, a determination shall be made of the proper fund or appropriation to which the expenditure should be charged. The fund or account from which funds are advanced shall thereupon be reimbursed out of the proper fund or appropriation."

SECTION 13. Section 264-19, Hawaii Revised Statutes, is repealed.

["[§264-19] Transportation improvement special fund. (a) There is created within the state treasury the transportation improvement special fund to fund qualified transportation projects and to receive reimbursements from private developers who have been advanced public funds to fulfill the conditions of land use development relating to transportation.

The director may expend from the special fund such sums as are necessary to advance transportation projects, including administrative expenses, to the extent permissible:

(1) When such projects:

(A) Have been identified in or are consistent with the statewide transportation plan adopted pursuant to chapter 279A; and

(B) Satisfy all applicable federal and state eligibility requirements; or

(2) When the director determines that funds previously authorized for the aforementioned projects are inadequate or any delay in the completion of such projects would unnecessarily increase their cost or intensify undesirable transportation conditions.

(b) Expenditures from the special fund shall be made on vouchers approved by the director or such other officer as may be designated by the director.

(c) There shall be credited to the special fund all reimbursements and any interest earned or penalty accrued on late payments thereon received from developers who have been advanced public funds to fulfill the conditions of land use development relating to transportation or other transportation requirements imposed upon such developers.

(d) Expenditures from the special fund may not be made by the director without appropriation by the legislature. No expenditure shall be made from, and no obligation shall be incurred against, the special fund in excess of the amount standing to the credit of the special fund or for any purpose for which moneys from the special fund may not lawfully be expended.

(e) The department of transportation shall prepare and submit an annual report to the legislature on the use of the transportation improvement special fund which shall include, but not be limited to:

(1) The [special] fund balance and the expenses made from the [special] fund for the immediately preceding fiscal year; and

(2) Proposed appropriations from the [special] fund for the next fiscal year.

This report shall be submitted to the legislature no later than twenty days prior to the convening of each legislative session.

(f) The director may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of, and to administer, this section.

(g) As used in this section:

"Director" means the director of transportation.

"Special fund" means the transportation improvement special fund."]

SECTION 14. The following revolving funds are reclassified as trust accounts:

(1) The highway senior interest account revolving fund administratively created in 1994;

(2) The highway senior principal account revolving fund administratively created in 1994; and

(3) The highways accrued payroll overhead revolving fund administratively created in 1983.

SECTION 15. The special deposits - highways trust account administratively created in 1979 is reclassified as a trust fund.

SECTION 16. Any unencumbered balances in the highway senior debt service reserve account revolving fund administratively created in 1994 shall be transferred to the credit of the state highway fund established by section 248-8, Hawaii Revised Statutes.

SECTION 17. All unencumbered balances remaining in the transportation improvement special fund repealed by this part shall lapse to the credit of the general fund.

PART V

SECTION 18. Section 291C-3, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) [The director of transportation, through the safe routes to school program coordinator and in consultation with county safe routes to school program coordinators, shall develop a mechanism to provide funds to county safe routes to school programs from the safe routes to school program special fund established under section 291C-4] The legislature shall appropriate funds to the counties to be used for the implementation of county safe routes to school program projects. No later than twenty days prior to the convening of each regular session, each county shall submit to the legislature an annual report on the status and progress of its county safe routes to school program, including an accounting of all grants provided through the program and a timeline for future grant awards."

PART VI

SECTION 19. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 20. This Act shall take effect on July 1, 2050.

Report Title:

DOT; Reclassification of Funds; Repeal of Non-General Funds; Transfer of Balances

Description:

Abolishes, repeals, or reclassifies various non-general funds of the department of transportation. Effective 7/1/2050. (HD1)

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