Report Title:

Central Service Expenses Assessment; Special Funds

 

Description:

Increases for 6 years from 7/1/09 to 6/30/15, annual rate of central service expenses assessments fees on special funds to 6%.  Removes all exemptions from central service expenses assessments for all special funds beginning on 6/1/09.

 

HOUSE OF REPRESENTATIVES	H.B. NO.	1734
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to management of state funds.

 

 

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

 

     SECTION 1.  The legislature finds that the State is undergoing a significant and possibly protracted economic downturn in tandem with the national and global economic and financial crises.  Numerous jobs have been lost, a number of large and small companies have declared bankruptcy or left the State, and many families have suffered foreclosure on their over-mortgaged houses.  In the past year, the council on revenues has consistently reduced its forecasts of Hawaii's tax revenues.  Across-the-board spending restrictions have already been put in place in state government and a general hiring freeze has already been implemented except in areas that impact public health and safety.

     In the face of these extraordinary conditions, the State cannot proceed with business as usual.  All resources must be examined to address critical statewide health, safety, and educational needs.  Accordingly, the purpose of this Act is to generate additional general funds to ensure the delivery of critical services statewide by increasing the rate of central service expenses assessment on special funds and to repeal all exemptions from this assessment for all special funds.

     SECTION 2.  Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

     "§36-27  Transfers from special funds for central service expenses.  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)  Housing loan program revenue bond special fund;

     (8)  Housing project bond special fund;

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

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

    (11)  Unemployment compensation fund established under section 383-121;

    (12)  Hawaii hurricane relief fund established under chapter 431P;

    (13)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

    (14)  Tourism special fund established under section 201B-11;

    (15)  Universal service fund established under chapter 269;

    (16)  Emergency and budget reserve fund under section 328L-3;

    (17)  Public schools special fees and charges fund under section 302A-1130(f);

    (18)  Sport fish special fund under section 187A-9.5;

    (19)  Neurotrauma special fund under section 321H-4;

    (20)  Deposit beverage container deposit special fund under section 342G-104;

    (21)  Glass advance disposal fee special fund established by section 342G-82;

    (22)  Center for nursing special fund under section 304A-2163;

    (23)  Passenger facility charge special fund established by section 261-5.5;

    (24)  Solicitation of funds for charitable purposes special fund established by section 467B-15;

    (25)  Land conservation fund established by section 173A-5;

    (26)  Court interpreting services revolving fund under section 607-1.5;

    (27)  Trauma system special fund under section 321-22.5;

    (28)  Hawaii cancer research special fund;

    (29)  Community health centers special fund;

    (30)  Emergency medical services special fund; and

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

shall deduct [five] six 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 3.  Section 36-28, Hawaii Revised Statutes, is amended to read as follows:

     "§36-28  Transfers from state highway fund for central service expenses.  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] six 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] six per cent has been previously made, which 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 4.  Section 36-28.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§36-28.5[]]  Transfer from airport revenue fund.  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] six 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] six per cent has previously been made.  The deductions shall be transferred to the general fund of the State and become general realizations of the State.  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.

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

     SECTION 5.  Section 36-29, Hawaii Revised Statutes, is amended to read as follows:

     "§36-29  Transfer from harbor special fund.  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] six 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] six per cent has previously been made.  The deductions shall be transferred to the general fund of the State and become general realizations of the State.  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.

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

     SECTION 6.  Section 36-29.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§36-29.5[]]  Transfer from boating special fund.  Notwithstanding any law to the contrary, including section 36‑27, 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 boating special fund, [five] six per cent of all receipts and deposits in the boating special fund after subtracting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the time period for which the deduction is to be made.  The deductions shall be transferred to the general fund of the State and shall become general realizations of the State.

     For the purpose of this section, the term "any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon" shall include:

     (1)  Amounts that are so pledged, charged, or encumbered; and

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

     The chairperson of the board of land and natural resources shall cooperate with the director of finance in effecting the transfer."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2009 and be repealed on June 30, 2015.

 

INTRODUCED BY:	_____________________________