HB679 SD2 PROPOSED LRB 24-1414.

PART I

SECTION 1. This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

PART II

SECTION 2. In accordance with section 9 of article VII of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the general fund expenditure ceiling for fiscal year 2023‑2024 has already been exceeded by $1,005,342,735 or 9.4 per cent. The appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2023-2024 to be further exceeded by $ or per cent. This declaration takes into account the additional general fund appropriations authorized for fiscal year 2023-2024 in this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriations made in this Act are necessary to serve the public interest; and

(2) The appropriations made in this Act meet the needs addressed by this Act.

PART III

SECTION 3. The legislature finds that the devastating wildfires brought on by winds from Hurricane Dora on August 8, 2023, resulted in one of the worst natural disasters in the State's history. The wildfires caused loss of life and displacement of thousands on the island of Maui. The disaster also destroyed nearly all of Lahaina.

The legislature further finds that to support response and recovery efforts and address immediate 2023 wildfire funding needs, the governor, through the seventh emergency proclamation relating to wildfires, dated September 8, 2023, and executive memorandum no. 23-08, redirected $164,100,000, after adjustments, from selected general fund operating appropriations from Act 164, Session Laws of Hawaii 2023, originally intended for specific purposes and capital improvement projects, to the department of budget and finance. The department of budget and finance subsequently transferred the $164,100,000 amount to the major disaster fund along with another $30,000,000 that the governor authorized pursuant to section 5 of Act 164, Session Laws of Hawaii 2023. With the existing $5,000,000 major disaster fund appropriation, a total of $199,100,000 has been allocated to the major disaster fund for initial wildfire response and recovery, including the State's expected share of noncongregate housing and debris clean-up costs initially being paid by the Federal Emergency Management Agency. These steps provided what was thought to be sufficient funding for the State to address the expected fiscal year 2023-2024 response and recovery expenses as of the beginning of January 2024. The legislature further finds that the Federal Emergency Management Agency executed the contract for debris clean-up costs, and the State executed the contracts for noncongregate housing and related expenses for room and board of wildfire victims displaced from their homes.

The State's expenses for noncongregate housing and other expenses including expenses for individuals impacted by the wildfires who have been classified as not eligible for Federal Emergency Management Agency assistance is expected to exceed the amounts previously transferred to the major disaster fund. Because the State executed these contracts, the State is responsible for making payment and will seek reimbursement from the Federal Emergency Management Agency for eligible costs. Issues have recently arisen over what costs are eligible for reimbursement, and the timeline in which the State will be reimbursed for eligible costs is currently not clear. The State will thus require additional funds to cover these immediate expenses in fiscal year 2023-2024.

Accordingly, the purpose of this part is to make an emergency appropriation to cover the State's immediate expenses incurred in the Hawaii wildfires disaster response efforts.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii to the department of budget and finance, departmental administration and budget division (BUFl0l), the sum of $297,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 for expenses related to noncongregate housing and other costs relating to the provision of food, housing or other assistance for individuals affected by the Hawaii wildfires disaster that began on August 8, 2023; provided that any unexpended or unencumbered balance shall lapse to the general fund on June 30, 2026; provided further that any law to the contrary notwithstanding, the governor may authorize the transfer of these funds to the major disaster fund established by section 127A-16, Hawaii Revised Statutes.

SECTION 5. The sum appropriated shall be expended by the department of budget and finance for the purposes of this part.

PART IV

SECTION 6. The legislature finds that the State's contribution of public funds to the one ohana bank trust account is for the compromise and settlement of claims to compensate individuals or their personal representatives affected by serious physical injury or death caused by the Maui wildfires and serves a public purpose.

The purpose of this part is to make an emergency appropriation to fund the State's contribution to the one ohana bank trust account for the compromise and settlement of claims based on the Maui wildfires.

SECTION 7. The legislature finds and declares that the contribution of state moneys to the one ohana bank trust account under this part for the compromise and settlement of claims is in the public interest and for the public health, safety, and general welfare of the State for the following reasons:

(1) The State recognizes the devastating impact of the Maui wildfires on its residents, resulting in physical injury and loss of life;

(2) It is imperative for the State to respond with compassion and support for those affected by the Maui wildfires, ensuring that victims or their personal representatives are provided with fair and just compensation on a timely basis;

(3) The State's contribution to the one ohana bank trust account is for the compromise and settlement of claims for those who have lost loved ones or suffered serious physical injuries in the Maui wildfires. Participation in seeking compensation from the one ohana bank trust account is purely voluntary;

(4) The legislature recognizes that contributors to the one ohana bank trust account besides the State include, among others, the county of Maui, Hawaiian Electric Company, the Kamehameha Schools, Charter Communications/Spectrum, Hawaiian Telcom, and the West Maui Land Company;

(5) The legislature recognizes the one ohana bank trust account as an efficient mechanism to address this urgent and exceptional situation, and understands the one ohana bank trust account's unique ability to provide assistance to those in need;

(6) The legislature recognizes the complexity and challenges of tort litigation and finds it prudent to provide an alternative through the one ohana bank trust account of streamlining the compensation process for those impacted by the Maui wildfires;

(7) The legislature finds that it is in the public interest to encourage swift and fair resolution to claims arising from the Maui wildfires, thus alleviating the burden on the judicial system, and fostering community support, unity, and recovery in the aftermath of the Maui wildfires; and

(8) The legislature recognizes that individuals seeking compensation from the one ohana bank trust account will be required to release the contributing parties to the fund from further liability and are willingly waiving their rights to pursue damages through tort litigation for wrongful death or personal injury claims, contributing to a more efficient resolution process.

Consequently, the legislature finds and declares that the public purpose is served by authorizing the expenditure of public moneys as the State's contribution to the one ohana bank trust account for the compromise and settlement of claims to provide an alternative for compensation to any individual or personal representative of a deceased individual who suffered serious physical injury or died as a result of the Maui wildfires, thus offering a timely and compassionate resolution to those affected by the Maui wildfires while relieving the burden on the judicial system and contributing to the rebuilding of lives and community.

SECTION 8. Any individual who receives compensation from the one ohana fund under this Act shall waive the right to sue for damages related to physical injury or death resulting from the Maui wildfires, recognizing the one ohana fund as an alternative to tort litigation.

SECTION 9. The department of the attorney general shall submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include lists of:

(1) Claims and the amounts paid by the one ohana bank trust account for the calendar year;

(2) The administrative costs incurred for the one ohana bank trust account for the calendar year; and

(3) Contributors and their contribution amounts to the one ohana bank trust account received during the calendar year.

SECTION 10. There is appropriated out of the general revenues of the State of Hawaii the sum of $65,000,000, or so much thereof as may be necessary for fiscal year 2023-2024, to fund the State's contribution to the one ohana bank trust account for the compromise and settlement of claims to compensate individuals or personal representatives affected by serious physical injury or death caused by the 2023 Maui wildfires; provided that the moneys appropriated in this section shall not lapse at the end of the fiscal year for which the appropriation is made; and provided further that any moneys that remain unencumbered on June 30, 2025, shall lapse on that date.

SECTION 11. The sum appropriated shall be expended by the department of the attorney general for the purposes of this part.

PART V

SECTION 12. Part II of Act 164, Session Laws of Hawaii 2023, is amended by amending section 3 as follows:

1. By amending item A-24 to read as follows:

"24. BED160 - HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION

OPERATING BED 150,000,000A [~~230,000,000A~~]

BED 3,100,000N 3,100,000N

23.00* 23.00*

45.00# 45.00#

BED 13,533,889W 14,046,265W

BED 3,000,000P 3,000,000P

INVESTMENT CAPITAL BED 45,000,000C 230,000,000C"

PART VI

SECTION 13. The legislature determines that there are amounts in excess of the requirements of the various funds listed in this Act. The director of finance is authorized to transfer the following amounts or so much thereof as may be necessary for fiscal year 2023-2024 from the following funds to the general fund:

	Account Code - Fund Name	Amount in excess of the requirements of the fund as determined by the legislature ($)	Amount authorized to be transferred to the general fund by the director of finance ($)
	Department of Agriculture (AGR)
1	S-303-A-AGRICULTURAL LOAN REVOLVING FUND	2,000,000	2,000,000
2	S-305-A NON-AGRICULTURAL PARK LANDS SPECIAL FUND	45,000	45,000
3	S-310-A AQUACULTURE LOAN RESERVE FUND	408,135	408,135
4	S-315-A-MILK CONTROL SPECIAL FUND	11,881	11,881
5	S-317-A AGRICULTURAL PARKS SPECIAL FUND	45,000	45,000
6	S-320-A-IRRIGATION SYSTEM REVOLVING FUND	87,000	87,000
7	S-322-A INDUSTRIAL HEMP PROGRAM SPECIAL FUND	90,374	90,374
	Department of the Attorney General (ATG)
8	S-305-N-DNA REGISTRY SPECIAL FUND	79,996	79,996
9	S-350-N-INTERNET CRIMES AGAINST CHILD SPECIAL FUND	181,386	181,386
	Department of Business, Economic Development, and Tourism (BED)
10	S-305-B-ENERGY SECURITY FUND	463,555	463,555
11	S-342-B-STRATEGIC DEVELOPMENT PROGRAMS REVOLVING FUND	5,000,000	5,000,000
12	S-348-B-TOURISM SPECIAL FUND	1,325,891	1,325,891
13	S-361-B-CONVENTION CENTER ENTERPRISE SPECIAL FUND	11,000,000	11,000,000
14	S-376-B-HOUSING FINANCE REVOLVING FUND	2,000,000	2,000,000
	Department of Defense (DEF)
15	S-352-G-HAZARD MITIGATION SPECIAL FUND	390,320	390,320
16	S-353-G-RESILIENT HI REVOLVING LOAN FUND	435,622	435,622
	Department of Human Services (HMS)
17	S-317-K-GENERAL ASSISTANCE PAYMENTS	901,783	901,783
	Department of Human Resources Development (HRD)
18	S-310-P-HUMAN RESOURCES DEVELOPMENT SPECIAL FUND	149,760	149,760
	Department of Health (HTH)
19	S-331-H-EARLY INTERVENTION SPECIAL FUND	204,329	204,329
20	S-338-H-VITAL STATISTICS IMPROVEMENT SPECIAL FUND	11,074	11,074
21	T-981-H-STATE HOSPITAL - DONATIONS (NOT IN S/T)	50,407	50,407
	Department of Labor and Industrial Relations (LBR)
22	T-904-L-WAGE CLAIM FUND	2,000,000	2,000,000
	Department of Land and Natural Resources (LNR)
23	S-302-C-CONSERVATION & RESOURCES ENFORCEMENT	650,858	650,858
24	S-303-C-WATER AND LAND DEVELOPMENT	509,063	509,063
25	S-309-C-BUREAU OF CONVEYANCES SPECIAL FUND	250,000	250,000
26	S-316-C-SPECIAL LAND DEVELOPMENT FUND	1,000,000	1,000,000
27	S-325-C-BEACH RESTORATION SPECIAL FUND	2,166,442	2,166,442
28	S-326-C-WATER RESOURCE MANAGEMENT FUND	65,740	65,740
29	S-342-C-NATURAL AREA RESERVE & WATERSHED MANAGEMENT	174,853	174,853
30	S-349-C-CONSERVATION AND RESOURCES ENFORCEMENT	841,237	841,237
31	S-359-C-OCEAN-BASED RECREATION SPECIAL FUND	2,000,000	2,000,000
	Department of Transportation (TRN)
32	S-318-D-SAFE ROUTES TO SCHOOL PROGRAM	1,814,826	1,814,826
33	S-329-D-MOTORCYCLE/MOTOR SCOOTER OPERATORS EDUCATIONAL FUND	723,725	723,725

PART VII

SECTION 14. Act 247, Session Laws of Hawaii 2022, is amended by amending section 1 to read as follows:

"[SECTION 1. The director of finance is authorized to issue general obligation bonds in the sum of $300,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2022-2023 for the other post-employment benefits trust fund governed by section 87A-42, Hawaii Revised Statutes, to pay or prepay the State's other post-employment benefits liability; provided that:

~~(1)~~ ~~The appropriation made for this transaction as authorized by this section shall not lapse at the end of the fiscal year for which the appropriation is made;~~

~~(2)~~ ~~All moneys from the appropriation unencumbered as of June 30, 2024, shall lapse as of that date; and~~

~~(3)~~ ~~The general obligation bonds authorized by this section shall be issued in the sole discretion of the director of finance; provided that:~~

~~(A)~~ To determine the annual required contribution, a preliminary annual required contribution to the trust fund shall be developed that treats the outstanding bond balance as part of the trust fund's unfunded actuarial accrued liability. The net cash contribution required to be contributed to the trust fund shall be the greater of:

~~(i)~~ ~~The preliminary annual required contribution less the related general obligation bond payment for the respective year; or~~

~~(ii)~~ The annual required contribution amount calculated under section 87A-42(f)(2), Hawaii Revised Statutes, without any special consideration given to the outstanding balance of the general obligation bonds or any related general obligation bond payments, for the respective year;

~~(B)~~ Entities shall only be permitted to issue general obligation bonds if the all-in true interest cost of the bonds is at least three hundred basis points less than the assumed rate of return of the trust fund, to which the proceeds will be contributed;

~~(C)~~ ~~General obligation bonds shall not be issued as a means for addressing budget shortfalls related to contributions required by law; and~~

~~(D)~~ ~~General obligation bonds shall only be issued as a means to produce long-term savings.~~] Repealed."

PART VIII

SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 16. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	679
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII		S.D. 2
		Proposed