SB1473 SD1

SECTION 1. Section 36-28, Hawaii Revised Statutes, is amended to read as follows:

"§36-28 Transfers from state highway fund for central service expenses. (a) Except as hereinafter provided, and notwithstanding any other law to the contrary, there shall be deducted from time to time by the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to the state highway fund created by section 248-8, five per cent of all receipts and deposits in the fund, after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has been previously made, [~~which~~] or $5,000,000, whichever is less.

(b) Beginning September 30, 2025, and every year thereafter, the director of transportation shall propose to the governor an adjustment to the amount transferred from the state highway fund by calculating a percentage based on the Consumer Price Index for All Urban Consumers in the Honolulu area, or a successor index, for the twelve months prior to September 1 of each year, less food and energy, as calculated by the United States Bureau of Labor Statistics; provided that, if in any year the percentage adjustment based on the Price Index for All Urban Consumers in the Honolulu area, or a successor index, would result in negative percentage, the governor may approve a zero per cent adjustment or no adjustment. Upon the governor's approval of the percentage adjustment, the director of finance shall apply the percentage adjustment to the amount deducted from the state highway fund and deduct any additional amounts.

(c) The deductions shall be transferred to the general fund of the State and become general realizations of the State. The state department of transportation shall cooperate with the director of finance in effecting these transfers."

SECTION 2. Section 36-28.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§36-28.5[]] Transfer from airport revenue fund. (a) Any law to the contrary notwithstanding, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the airport revenue fund five per cent of all receipts and deposits in the airport revenue fund after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has previously been made[.], or $5,000,000, whichever is less.

(b) Beginning September 30, 2025, and every year thereafter, the director of transportation shall propose to the governor an adjustment to the amount transferred from the airport revenue fund by calculating a percentage based on the Consumer Price Index for All Urban Consumers in the Honolulu area, or a successor index, for the twelve months prior to September 1 of each year, less food and energy, as calculated by the United States Bureau of Labor Statistics; provided that, if in any year the percentage adjustment based on the Consumer Price Index for All Urban Consumers in the Honolulu area, or a successor index, would result in a negative percentage, the governor may approve a zero per cent adjustment or no adjustment. Upon the governor's approval of the percentage adjustment, the director of finance shall apply the percentage adjustment to the amount deducted from the airport revenue fund and deduct any additional amounts.

(d) For the purpose of this section, the term "any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year" shall include:

(1) Amounts [~~which~~] that are so pledged, charged, or encumbered;

(2) Amounts otherwise required to be applied to the payment of principal of and interest on revenue bonds or other revenue obligations; and

(3) Amounts required by law to be paid from the airport revenue fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for airport purposes.

(e) The director of transportation shall cooperate with the director of finance in effecting the transfer."

SECTION 3. Section 36-29, Hawaii Revised Statutes, is amended to read as follows:

"§36-29 Transfer from harbor special fund. (a) Any other law to the contrary notwithstanding, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the harbor special fund five per cent of all receipts and deposits in the harbor special fund after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has previously been made[.], or $5,000,000, whichever is less.

(b) Beginning September 30, 2025, and every year thereafter, the director of transportation shall propose to the governor an adjustment to the amount transferred from the harbor special fund by calculating a percentage based on the Consumer Price Index for All Urban Consumers in the Honolulu area, or a successor index, for the twelve months prior to September 1 of each year, less food and energy, as calculated by the United States Bureau of Labor Statistics; provided that, if in any year the percentage adjustment based on the Consumer Price Index for All Urban Consumers in the Honolulu area, or a successor index, would result in negative percentage, the governor may approve a zero per cent adjustment or no adjustment. Upon the governor's approval of the percentage adjustment, the director of finance shall apply the percentage adjustment to the amount deducted from the harbor special fund and deduct any additional amounts.

(d) For the purposes of this section, the term "any amount pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year" shall include:

(1) Amounts [~~which~~] that are so pledged, charged, or encumbered;

(2) Amounts otherwise required to be applied to the payment of principal of and interest on revenue bonds or other revenue obligations;

(3) Amounts required to be paid into a separate special fund for the payment of principal of and interest on revenue bonds or other revenue obligations payable from the second separate special fund; and

(4) Amounts required by law to be paid from the harbor special fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for harbor purposes.

(e) The second separate special fund maintained by deposits from the harbor special fund shall not be deemed to be a special fund within the meaning of section 36-27 or section 36-30.

(f) The director of transportation shall cooperate with the director of finance in effecting the transfer."

SECTION 4. 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 that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	1473
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII