REPORT TITLE:
Special and Revolving Funds


DESCRIPTION:
Repeals certain state special and revolving funds.  Changes the
revenue source of each special fund program affected to the state
general fund.  Changes requirements for transferring funds from
the DOT special fund to the general fund.  Requires deposit of GE
taxes on fuel into state highway fund.  Requires deposit of
rental car and tour vehicle surcharge taxes into the general
fund.  (SB445 SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        445
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO FUNDS.



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

 1                              PART I
 
 2      SECTION 1. Chapter 206P, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "§206P-    Sources and uses of funds.  The director of
 
 6 finance, on behalf of the corporation, shall submit the annual
 
 7 budgetary request for operating revenues to the legislature to
 
 8 carry out the purposes of this chapter.  The director may accept
 
 9 gifts and donations on behalf of the corporation; provided that
 
10 moneys accepted from private sources shall be expended by the
 
11 corporation in the manner prescribed by the contributor.  The
 
12 corporation may expend moneys appropriated by the legislature
 
13 under this chapter to carry out section 206P-4."
 
14      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§36-27  Transfers from special funds for central service
 
17 expenses.  [Except as provided in this section, and
 
18 notwithstanding] Notwithstanding any other law to the contrary,
 
19 from time to time the director of finance, for the purpose of
 

 
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 1 defraying the prorated estimate of central service expenses of
 
 2 government in relation to all special funds, except the:
 
 3      (1)  Special summer school and intersession fund under
 
 4           section 302A-1310;
 
 5      (2)  School cafeteria special funds of the community
 
 6           colleges and the department of education;
 
 7      (3)  Special funds of the student housing, summer session,
 
 8           college of continuing education and community service,
 
 9           campus center, and bookstores of the University of
 
10           Hawaii;
 
11     [(4)  State educational facilities improvement special fund;
 
12      (5)] (4)  Convention center capital and operations special
 
13           fund;
 
14     [(6)] (5)  Special funds established by section 206E-6;
 
15     [(7)] (6)  Housing loan program revenue bond special fund;
 
16     [(8)] (7)  Housing project bond special fund;
 
17     [(9)] (8)  Aloha Tower fund created by section 206J-17;
 
18    [(10)] (9)  Spouse and child abuse special account under
 
19           section 346-7.5;
 
20    [(11)] (10)  Spouse and child abuse special account under
 
21           section 601-3.6;
 
22    [(12)] (11)  Funds of the employees' retirement system created
 

 
 
 
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 1           by section 88-109;
 
 2    [(13)] (12)  Unemployment compensation fund established under
 
 3           section 383-121;
 
 4    [(14)] (13)  Hawaii hurricane relief fund established under
 
 5           chapter 431P;
 
 6    [(15)] (14)  The University of Hawaii tuition and fees special
 
 7           fund; and
 
 8    [(16)] (15)  Division of community hospitals' special funds,
 
 9 shall deduct five per cent of all receipts of all other special
 
10 funds, which deduction shall be transferred to the general fund
 
11 of the State and become general realizations of the State.  All
 
12 officers of the State and other persons having power to allocate
 
13 or disburse any special funds shall cooperate with the director
 
14 in effecting these transfers.  To determine the proper revenue
 
15 base upon which the central service assessment is to be
 
16 calculated, the director shall adopt rules pursuant to chapter 91
 
17 for the purpose of suspending or limiting the application of the
 
18 central service assessment of any fund.  No later than twenty
 
19 days prior to the convening of each regular session of the
 
20 legislature, the director shall report all central service
 
21 assessments made during the preceding fiscal year."
 
22      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 

 
 
 
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 1 amended by amending subsection (a) to read as follows:
 
 2      "(a)  Each special fund, except the:
 
 3      (1)  Transportation use special fund established by
 
 4           section 261D-1;
 
 5      (2)  Special summer school and intersession fund under
 
 6           section 302A-1310;
 
 7      (3)  School cafeteria special funds of the community
 
 8           colleges and the department of education;
 
 9      (4)  Special funds of the student housing, summer session,
 
10           college of continuing education and community service,
 
11           campus center, and bookstores of the University of
 
12           Hawaii;
 
13     [(5)  State educational facilities improvement special fund;
 
14      (6)] (5)  Special funds established by section 206E-6;
 
15     [(7)] (6)  Aloha Tower fund created by section 206J-17;
 
16     [(8)] (7)  Spouse and child abuse special account under
 
17           section 346-7.5;
 
18     [(9)] (8)  Spouse and child abuse special account under
 
19           section 601-3.6;
 
20    [(10)] (9)  Funds of the employees' retirement system created
 
21           by section 88-109;
 
22    [(11)] (10)  Unemployment compensation fund established under
 

 
 
 
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 1           section 383-121;
 
 2    [(12)] (11)  Hawaii hurricane relief fund established under
 
 3           chapter 431P;
 
 4    [(13)] (12)  Convention center capital and operations special
 
 5           fund established under section 206X-10.5;
 
 6    [(14)] (13)  The University of Hawaii tuition and fees special
 
 7           fund; and
 
 8    [(15)] (14)  Division of community hospitals' special funds,
 
 9 shall be responsible for its pro rata share of the administrative
 
10 expenses incurred by the department responsible for the
 
11 operations supported by the special fund concerned."
 
12      SECTION 4.  Section 37-53, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§37-53  Transfer of special funds.  At any time during a
 
15 fiscal year, notwithstanding any other law to the contrary, any
 
16 department may, with the approval of the governor or the director
 
17 of finance if so delegated by the governor, transfer from any
 
18 special fund relating to such department to the general revenues
 
19 of the State all or any portion of moneys determined to be in
 
20 excess of fiscal year requirements for such special fund, except
 
21 for special funds under the control of the department of
 
22 transportation relating to highways, airports, transportation
 

 
 
 
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 1 use, and harbors activities, and special funds under the control
 
 2 of the division of community hospitals of the department of
 
 3 health.  At any time the department of transportation, with the
 
 4 approval of the governor or the director of finance if so
 
 5 delegated by the governor, may transfer from any special fund
 
 6 under the control of the department of transportation, or from
 
 7 any account within any such special fund, to the general revenues
 
 8 of the State or to any other special fund under the control of
 
 9 the department of transportation all or any portion of moneys
 
10 determined to be in excess of requirements for the ensuing
 
11 [twelve months] three years determined as prescribed by rules
 
12 adopted pursuant to chapter 91; provided that no such transfer
 
13 shall be made which would cause a violation of federal law or
 
14 federal grant agreements."
 
15      SECTION 5.  Section 41D-3, Hawaii Revised Statutes, is
 
16 amended by amending subsection (h) to read as follows:
 
17      "(h)  Claims compromised or settled under this section shall
 
18 be paid from the state [risk management revolving] general fund." 
 
19      SECTION 6.  Section 41D-4, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§41D-4  State risk management [revolving fund.]; source and
 
22 use of funds.  (a)  The [state risk management revolving fund is
 

 
 
 
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 1 created and shall be funded in amounts reasonably necessary to:]
 
 2 comptroller shall authorize the disbursement of all moneys
 
 3 appropriated by the legislature under this chapter to:
 
 4      (1)  Carry out the responsibilities of the comptroller
 
 5           established in section 41D-2;
 
 6      (2)  Pay claims to state agencies for losses to property of
 
 7           the State caused by fire or other casualty, including
 
 8           the cost to repair or replace buildings and other
 
 9           structures, replace damaged contents, and to provide
 
10           alternate structures while damaged structures are being
 
11           repaired or replaced;
 
12      (3)  Pay claims against the State under sections 662-11,
 
13           41D-3, and 41D-8; and
 
14      (4)  Pay for losses to the State incurred by the dishonesty,
 
15           nonfeasance, or misfeasance of any officer or employee
 
16           of the State or for any losses to the State through
 
17           larceny, theft, embezzlement, forgery,
 
18           misappropriation, wrongful abstraction, wilful
 
19           misapplication, or any other fraudulent or dishonest
 
20           act committed by one or more of the employees of the
 
21           State acting directly or in collusion with others.
 
22      (b)  In addition to any appropriation the legislature shall
 

 
 
 
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 1 make [to the state risk management revolving fund,] for the
 
 2 purposes of this chapter, the comptroller may apportion to, and
 
 3 collect from, state agencies those amounts of money that, in the
 
 4 discretion of the comptroller, reflect benefits received by the
 
 5 agencies under this chapter.  The comptroller may consider the
 
 6 relevant risk and loss experience of the agencies in making
 
 7 apportionments and assessments.  Funds so collected shall be
 
 8 deposited into the state [risk management revolving] general
 
 9 fund.
 
10      (c)  The comptroller may establish deductibles for the state
 
11 agencies for certain perils or classes of property losses and
 
12 may:
 
13      (1)  Assess the agencies for losses incurred in the amount
 
14           of the deductible; or
 
15      (2)  Reduce the payment from the state risk management
 
16           revolving fund to cover the casualty loss by the amount
 
17           of the deductible.
 
18      (d)  The comptroller may establish a formula for refunds to
 
19 the state agencies based upon the agencies' risk and loss
 
20 experience.
 
21      (e)  Money [in the state risk management revolving fund]
 
22 appropriated by the legislature under this chapter shall be
 

 
 
 
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 1 expended only for the purposes delineated in subsection (a) and
 
 2 only upon the authority of the comptroller, [who is given
 
 3 discretion when to permit expenditures from the fund.  Money in
 
 4 the state risk management revolving fund] and shall not be
 
 5 garnished, attached, or otherwise subjected to legal compulsion
 
 6 to pay actual or alleged obligations of the State, any state
 
 7 agency, or any state employee.
 
 8      (f)  The comptroller shall prepare, for each fiscal year, a
 
 9 report of all claims arbitrated, compromised, or settled for
 
10 $10,000 or less paid [from the state risk management revolving
 
11 fund.] under this chapter.  The report shall be submitted to the
 
12 legislature twenty days prior to the commencement of the regular
 
13 session next succeeding the year for which the report is made.
 
14      (g)  Money received from the settlement of claims or losses
 
15 of the State as delineated in subsection (a) may be deposited
 
16 into the state [risk management revolving] general fund."
 
17      SECTION 7.  Section 41D-8, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "[[]§41D-8[]]  Insurance on public vehicles.  Vehicles owned
 
20 by the State or in the custody and use of any department may be
 
21 self-insured or insured by purchased insurance against public
 
22 liability in compliance with article 10C of chapter 431.
 

 
 
 
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 1 Determinations of whether to insure or self-insure shall be made
 
 2 by the comptroller in conjunction with the state agency having
 
 3 custody or control of the vehicle, or the vehicle may be insured
 
 4 on a complete or excess coverage basis under a comprehensive
 
 5 automobile liability insurance policy entered into by the
 
 6 comptroller.  If the vehicles are self-insured, claims for which
 
 7 the State is liable under article 10C of chapter 431 may be
 
 8 settled and paid by the comptroller [from the state risk
 
 9 management revolving fund,] out of appropriations made by the
 
10 legislature from the state general fund, notwithstanding the
 
11 provisions of chapter 662.  Any purchased state comprehensive
 
12 automobile liability insurance policy shall be administered by
 
13 and be subject to the control of the comptroller."
 
14      SECTION 8.  Section 103-8.5, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "[[]§103-8.5[]]  Works of art [special fund.] programs;
 
17 source and use of funds.  (a)  [There is created a works of art
 
18 special fund, into which shall be transferred one per cent of all
 
19 state fund appropriations for capital improvements designated for
 
20 the construction cost element; provided that this transfer shall
 
21 apply only to capital improvement appropriations that are
 
22 designated for the construction or renovation of state buildings.
 

 
 
 
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 1      (b)  The works of art special fund shall be used] The
 
 2 comptroller shall disburse moneys appropriated by the legislature
 
 3 under this section solely for the following purposes:
 
 4      (1)  Costs related to the acquisition of works of art,
 
 5           including any consultant or staff services required to
 
 6           carry out the art in public places and relocatable
 
 7           works of art programs;
 
 8      (2)  Site modifications, display, and interpretive work
 
 9           necessary for the exhibition of works of art;
 
10      (3)  Upkeep services, including maintenance, repair, and
 
11           restoration of works of art; and
 
12      (4)  Storing and transporting works of art.
 
13      [(c)  The one per cent amount, which is included in all
 
14 capital improvement appropriations, shall be calculated at the
 
15 time the appropriation bills are signed into law.  The moneys
 
16 shall be transferred into the works of art special fund upon
 
17 availability of moneys from the appropriations.
 
18      (d)] (b)  The comptroller and the state foundation on
 
19 culture and the arts shall decide on the specific art objects to
 
20 acquire, giving first consideration to placing appropriate pieces
 
21 of art at the locations of the original appropriation.
 
22      The selection of, commissioning artists for, reviewing of
 

 
 
 
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 1 design, execution, and placement of, and the acceptance of works
 
 2 of art shall be the responsibility of the comptroller and the
 
 3 state foundation on culture and the arts in consultation with the
 
 4 affected agency or department.
 
 5      [Expenditures from the works of art special fund shall be
 
 6 made by the comptroller.]"
 
 7      SECTION 9.  Section 128D-1, Hawaii Revised Statutes, is
 
 8 amended by amending the definition of "fund" to read as follows:
 
 9      ""Fund" means the [environmental response revolving] state
 
10 general fund."
 
11      SECTION 10.  Section 128D-2, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§128D-2 Environmental response [revolving fund; uses.(a)
 
14 There is created within the state treasury an environmental
 
15 response revolving fund, which shall consist of moneys
 
16 appropriated to the fund by the legislature, moneys paid to the
 
17 fund as a result of departmental compliance proceedings, moneys
 
18 paid to the fund pursuant to court-ordered awards or judgments,
 
19 moneys paid to the fund in court-approved or out-of-court
 
20 settlements, all interest attributable to investment of money
 
21 deposited in the fund, moneys generated by the environmental
 
22 response tax established in section 243-3.5, and moneys allotted
 

 
 
 
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 1 to the fund from other sources; provided that when the total
 
 2 balance of the fund exceeds $7,000,000, the department of health
 
 3 shall notify the department of taxation of this fact in writing
 
 4 within ten days.  The department of taxation then shall notify
 
 5 all distributors liable for collecting the tax imposed by section
 
 6 243-3.5 of this fact in writing, and the imposition of the tax
 
 7 shall be discontinued beginning the first day of the second month
 
 8 following the month in which notice is given to the department of
 
 9 taxation.  If the total balance of the fund thereafter declines
 
10 to less than $3,000,000, the department of health shall notify
 
11 the department of taxation which then shall notify all
 
12 distributors liable for collecting the tax imposed by section
 
13 243-3.5 of this fact in writing, and the imposition of the tax
 
14 shall be reinstated beginning the first day of the second month
 
15 following the month in which notice is given to the department of
 
16 taxation.] program; source of funds; disposition of receipts.  
 
17      (a)  All moneys to meet the general operating needs and
 
18 expenses of the department under this chapter shall be allocated
 
19 by the legislature through appropriations out of the state
 
20 general fund.  The department shall include in its budgetary
 
21 request for each upcoming fiscal period, the amounts necessary to
 
22 effectuate the purposes of this chapter.
 

 
 
 
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 1      (b)  Moneys [from the fund] allocated by the legislature
 
 2 shall be expended by the department for response actions,
 
 3 including removal and remedial actions, consistent with this
 
 4 chapter; provided that the revenues generated by the
 
 5 "environmental response tax" and deposited into the
 
 6 [environmental response revolving] state general fund:
 
 7      (1)  Shall be used:
 
 8           (A)  For oil spill planning, prevention, preparedness,
 
 9                education, research, training, removal, and
 
10                remediation; and
 
11           (B)  For direct support for county used oil recycling
 
12                programs; and
 
13      (2)  May also be used to address concerns related to
 
14           drinking water, underground storage tanks, including
 
15           support for the underground storage tank program of the
 
16           department and funding for the acquisition by the State
 
17           of a soil remediation site and facility."
 
18      SECTION 11.  Section 128D-8, Hawaii Revised Statutes, is
 
19 amended by amending subsection (d) to read as follows:
 
20      "(d)  Civil penalties collected under this chapter shall be
 
21 paid to the department for deposit into the [revolving] fund and
 
22 may be recovered in a civil action in a court of competent
 

 
 
 
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 1 jurisdiction where the violation is alleged to have occurred."
 
 2      SECTION 12.  Section 128D-13, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§128D-13[]]  Reporting requirements.  The department
 
 5 shall submit to the legislature an annual report, including a
 
 6 comprehensive budget to implement remedial action plans requiring
 
 7 funding by the [environmental response revolving] fund.  This
 
 8 report shall identify those sites eligible for remedial action
 
 9 under CERCLA, including a statement as to any appropriation that
 
10 may be necessary to pay the State's share of the plan."
 
11      SECTION 13.  Section 128D-19, Hawaii Revised Statutes, is
 
12 amended by amending subsection (d) to read as follows:
 
13      "(d)  A petitioner who is liable under this chapter may
 
14 recover the petitioner's reasonable costs of compliance with the
 
15 order from the fund, [or, if there are not sufficient moneys in
 
16 the fund to satisfy the claims, then from the State,] to the
 
17 extent that the petitioner can demonstrate, on the administrative
 
18 record, that the director's decision in selecting the action
 
19 ordered was arbitrary and capricious or was otherwise not in
 
20 accordance with the law.  Reimbursement awarded under this
 
21 subsection shall include all costs incurred by the petitioner
 
22 pursuant to the order.  If only a portion of the order is found
 

 
 
 
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 1 to be arbitrary and capricious or otherwise not in accordance
 
 2 with law, reimbursement awarded under this paragraph shall
 
 3 include all costs incurred by the petitioner pursuant to the
 
 4 portions of the order found to be arbitrary and capricious or
 
 5 otherwise not in accordance with the law."
 
 6      SECTION 14.  Section 168-3, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "[[]§168-3[]]  Funds.  The board of agriculture shall pay
 
 9 all receipts and revenues received by it from the operation of an
 
10 irrigation and water utilization system into the [irrigation
 
11 system revolving fund established under section 167-22.  The
 
12 fund] state general fund.  Moneys appropriated by the legislature
 
13 shall be used and expended for the following purposes:
 
14      (1)  Payment of the operating and maintenance costs of the
 
15           system;
 
16      (2)  Repairs, replacements, additions, and extensions;
 
17      (3)  Reimbursement to the State the amount of any principal
 
18           or interest due upon any bond issue under this
 
19           chapter."
 
20      SECTION 15.  Section 168-5, Hawaii Revised Statutes, is
 
21 amended by amending subsection (a) to read as follows:
 
22      "(a)  There shall be a special account in the [irrigation
 

 
 
 
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 1 system revolving fund of the board of agriculture] department of
 
 2 budget and finance to be known as the "irrigation systems
 
 3 account".  The director of finance may make temporary use of any
 
 4 portion or all of the money not immediately needed for
 
 5 construction and operation of an irrigation system for the
 
 6 purpose of paying warrants drawn on the treasury for current
 
 7 indebtedness of the State, or for deposit in the state sinking
 
 8 fund for the repayment of bonds, or for investment in state
 
 9 bonds; provided that sufficient of the sums so taken, deposited,
 
10 or invested shall be redeposited to the credit of the irrigation
 
11 systems account prior to the time when any engagement for the
 
12 payment from the account falls due.
 
13      The moneys from the account shall be expended upon warrants
 
14 drawn by the comptroller for the purposes of this chapter."
 
15      SECTION 16.  Section 171-138, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§171-138  Industrial park [special fund.] program; source
 
18 of funds.  (a)  [There is established within the treasury of the
 
19 State the industrial park special fund.  The proceeds of the
 
20 special fund] All moneys to carry out the purposes of this part
 
21 shall be allocated by the legislature out of appropriations made
 
22 from the state general fund.  The department shall include in its
 

 
 
 
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 1 budgetary request for each upcoming fiscal period, the amounts
 
 2 necessary to carry out the purposes of this part.  All
 
 3 appropriations made by the legislature shall be used for the
 
 4 following purposes:
 
 5      (1)  Planning, design, improvement, construction, land
 
 6           acquisition, and equipment necessary for the
 
 7           development or maintenance of industrial parks;
 
 8      (2)  Constructing, operating, maintaining, and improving
 
 9           infrastructure and other public or common facilities
 
10           within industrial parks;
 
11      (3)  Payment of debt service on revenue bonds issued by the
 
12           department for industrial park purposes, and the
 
13           establishment of debt service and other reserves deemed
 
14           necessary by the board;
 
15      (4)  Reimbursement of the general fund for debt service on
 
16           general obligation bonds issued to finance industrial
 
17           park projects, where the bonds are designated to be
 
18           reimbursable out of the [industrial park special fund;]
 
19           general fund; and
 
20      (5)  Any other purpose deemed necessary by the board for the
 
21           purpose of planning, improving, developing, operating,
 
22           and maintaining industrial parks.
 

 
 
 
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 1      (b)  The following receipts shall be deposited into the
 
 2 [special] state general fund:
 
 3      (1)  [Appropriations by the legislature to the special fund;
 
 4      (2)] Lease rents collected from eligible lessees of public
 
 5           lands within industrial parks; and
 
 6     [(3)] (2)  Assessments collected from eligible lessees of
 
 7           public lands within industrial parks which are charged
 
 8           by the board pursuant to conditions in the leases[; and
 
 9      (4)  Interest earned or accrued on moneys in the special
 
10           fund]."
 
11      SECTION 17.  Section 183D-10.5, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§183D-10.5  Wildlife [revolving fund; establishment.]
 
14 program; disposition of receipts.  (a)  [There is established a
 
15 wildlife revolving fund under the department of land and natural
 
16 resources.
 
17      (b)]  The following proceeds received by the department
 
18 shall be [retained by or transmitted to the department of land
 
19 and natural resources for deposit into the wildlife revolving]
 
20 deposited to the credit of the general fund:
 
21      (1)  Moneys collected as fees for hunting licenses,
 
22           attendance of hunter education training programs, and
 

 
 
 
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 1           use of public target ranges;
 
 2      (2)  Moneys collected under the provision of any law
 
 3           relating to the importation, taking, catching, or
 
 4           killing of game, wildlife, and products thereof;
 
 5      (3)  Moneys, other than informers' fees authorized under
 
 6           section 183D-11, collected as fines or bail forfeitures
 
 7           for violation of this chapter or any provision of
 
 8           chapter 195D concerning wildlife conservation; and
 
 9      (4)  Moneys collected from the sale of:
 
10           (A)  Any article, in addition to a hunting license,
 
11                which a person is required to purchase from the
 
12                department in order to hunt, when the requirement
 
13                is established by law or rule; and
 
14           (B)  Any work of art upon which the article under
 
15                subparagraph (A) is based.
 
16      [(c)  Expenditures from the wildlife revolving fund]  (b)
 
17 All moneys appropriated by the legislature for the purposes of
 
18 this section shall be limited to the following:
 
19      (1)  For programs and activities to implement or enforce
 
20           this chapter, including the provision of state funds to
 
21           match federal aid grants under the Pittman-Robertson
 
22           Federal Aid in Wildlife Restoration Act (50 Stat. 917,
 

 
 
 
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 1           16 U.S.C. §669), as amended, for projects concerning
 
 2           wildlife;
 
 3      (2)  For programs and activities to implement or enforce
 
 4           chapter 195D concerning wildlife conservation;
 
 5      (3)  For acquisition of the use, development, or maintenance
 
 6           of trails and accessways into or through forest
 
 7           reserves, natural area reserves, game management areas,
 
 8           wildlife sanctuaries, public hunting areas, private and
 
 9           commercial shooting preserves, or private lands where
 
10           hunting or hiking by the public is authorized; and
 
11      (4)  For research programs and activities concerning
 
12           wildlife conservation and management.  Research
 
13           programs and activities funded under this paragraph may
 
14           be conducted by personnel of the department or through
 
15           grants-in-aid to or contracts with the University of
 
16           Hawaii or other qualified persons.
 
17      [(d)  The proceeds of the wildlife revolving fund shall not
 
18 be used as security for, or pledged to the payment of principal
 
19 or interest on, any bonds or other instruments of indebtedness.
 
20      (e)  In addition to subsections (c) and (f), the] (c)  The
 
21 department may also use moneys [in the wildlife revolving fund]
 
22 appropriated by the legislature under this section for the
 

 
 
 
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 1 importation into, and the management, preservation, propagation,
 
 2 and protection of, game or wildlife in the State; provided that
 
 3 the department prior to authorizing expenditures or expending
 
 4 funds [from the wildlife revolving fund] appropriated by the
 
 5 legislature shall first use those funds to maximize the State's
 
 6 participation to secure federal funds under the Pittman-Robertson
 
 7 Federal Aid in Wildlife Restoration Act, as amended.
 
 8      [(f)  Nothing in this section shall be construed as
 
 9 prohibiting the funding with general funds or other funds of
 
10 programs and activities to implement or enforce this chapter or
 
11 chapter 195D concerning wildlife conservation.
 
12      (g)] (d)  The department shall prepare and submit an annual
 
13 report on [the status of the wildlife revolving fund] funds
 
14 expended under this section to the legislature no later than
 
15 twenty days prior to the convening of each regular session.  The
 
16 report shall include but not be limited to:
 
17      (1)  The [source and] application of moneys [deposited into
 
18           the fund,] expended under this section, including a
 
19           description of the criteria and process used to
 
20           determine funding priorities;
 
21      (2)  A description of programs and activities supported by
 
22           the [fund;] department under the funds allocated by the
 

 
 
 
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 1           legislature under this section;
 
 2      (3)  A summary of program highlights and accomplishments;
 
 3           and
 
 4      (4)  A description of future program plans, including
 
 5           specific goals and objectives."
 
 6      SECTION 18.  Section 184-32, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "[[]§184-32[]]  Aina hoomalu [special fund.(a)  There is
 
 9 established within the state treasury a special fund to be known
 
10 as the aina hoomalu special fund.] program; disposition of
 
11 receipts; source or operating funds.  (a)  All proceeds collected
 
12 by the state parks program involving park user fees or any leases
 
13 or concession agreements shall be deposited into [this] the
 
14 general fund, provided that proceeds derived from the operation
 
15 of Iolani Palace shall be used to supplement its educational and
 
16 interpretive programs. 
 
17      (b)  [The department shall expend the moneys from the aina
 
18 hoomalu special fund after July 1, 1992.]  All moneys necessary
 
19 to carry out the purposes of the aina hoomalu program shall be
 
20 appropriated by the legislature out of the proceeds of the
 
21 general fund.  The funds appropriated by the legislature shall be
 
22 used for the following purposes:
 

 
 
 
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 1      (1)  Permanent staff positions;
 
 2      (2)  Planning and development of interpretive programs;
 
 3      (3)  Construction of interpretive facilities;
 
 4      (4)  Repairs, replacements, additions, and extensions; and
 
 5      (5)  Operation and maintenance costs of programs."
 
 6      SECTION 19.  Section 195F-2, Hawaii Revised Statutes, is
 
 7 amended by deleting the definition of the term "fund".
 
 8      [""Fund" means the forest stewardship fund as established by
 
 9 section 195F-4."]
 
10      SECTION 20.  Section 195F-4, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "[[]§195F-4[]]  Forest stewardship [fund.(a)  There is
 
13 established a special fund within the state treasury known as the
 
14 forest stewardship fund from which] program; operating revenues;
 
15 disposition of receipts.   (a)  All moneys required to make
 
16 payments [shall be made by the board] pursuant to agreements
 
17 entered into with qualified landowners to further the purposes of
 
18 this chapter[.] shall be appropriated by the legislature out of
 
19 the proceeds of the general fund.
 
20      (b)  [The fund shall consist of] All moneys received from
 
21 [any] public or private sources[.  The fund shall be held
 
22 separate and apart from all other moneys, funds, and accounts in
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the state treasury;] shall be deposited to the credit of the
 
 2 general fund; provided that any moneys received from the federal
 
 3 government or from private contributions shall be deposited and
 
 4 accounted for in accordance with conditions established by the
 
 5 agencies or persons from whom the moneys are received.
 
 6      [Investment earnings credited to the fund shall become a
 
 7 part of the assets of the fund.  Any balance remaining in the
 
 8 fund at the end of any fiscal year shall be carried forward in
 
 9 the fund for the next fiscal year.]"
 
10      SECTION 21.  Section 195F-6, Hawaii Revised Statutes, is
 
11 amended by amending subsection (e) to read as follows:
 
12      "(e)  The board shall submit annually a detailed report to
 
13 the governor and legislature setting forth management objectives
 
14 that have been completed, an analysis of problems and issues
 
15 encountered in meeting or failing to meet objectives as set forth
 
16 in the management plans, the financial condition of the [fund,]
 
17 program, and management objectives for the next year." 
 
18      SECTION 22.  Section 201E-40, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§201E-40  Duty to make reports.  Except as otherwise
 
21 provided by law, the housing finance and development corporation
 
22 shall be responsible for the following reports:
 

 
 
 
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 1      (1)  The corporation shall at least once a year file with
 
 2           the governor a report of its activities for the
 
 3           preceding year;
 
 4      (2)  The corporation shall report to the state comptroller
 
 5           on moneys deposited in depositories other than the
 
 6           state treasury under section 40-81, and rules adopted
 
 7           thereunder; and
 
 8      (3)  The corporation shall submit an annual report to the
 
 9           legislature on all corporation program areas [and
 
10           funds], organized by program area, [and by fund within
 
11           each program area,] no later than twenty days prior to
 
12           the convening of each regular session, which shall
 
13           provide the following information on the status of its
 
14           programs and finances:
 
15           (A)  A description of programs being developed in the
 
16                current fiscal biennium, including a summary
 
17                listing of such programs, the status of each
 
18                program, the methods of project financing or
 
19                loans, and other information deemed significant;
 
20           (B)  A description of programs planned for development
 
21                during the two ensuing fiscal bienniums, including
 
22                a summary listing of such proposed programs, the
 

 
 
 
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 1                methods of project financing or loans, and other
 
 2                information deemed significant;
 
 3           (C)  A status report of actual expenditures made in the
 
 4                prior completed fiscal year from each [fund]
 
 5                program established under this chapter, estimated
 
 6                expenditures anticipated for the current fiscal
 
 7                year, and projected expenditures for the ensuing
 
 8                fiscal years to be described in relation to
 
 9                specific projects developed to implement the
 
10                purposes of any program [or fund] established
 
11                under this chapter; and
 
12           (D)  A financial audit and report conducted on an
 
13                annual basis by a certified public accounting
 
14                firm."
 
15      SECTION 23.  Section 201E-57, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "[[]§201E-57[]]  Housing finance [revolving fund]; housing
 
18 project [bond special funds.(a)  There is created a housing
 
19 finance revolving fund to be administered by the corporation.
 
20 Notwithstanding sections 36-21 and 201E-204, the proceeds in the
 
21 fund shall be used] bonds.  (a)  The corporation is authorized to
 
22 expend moneys for long-term and other special financings of the
 

 
 
 
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 1 corporation and for the necessary expenses in administering this
 
 2 chapter.
 
 3      (b)  All moneys received and collected by the corporation,
 
 4 not otherwise pledged or obligated nor required by law to be
 
 5 placed in any other special fund, shall be [deposited in the
 
 6 housing finance revolving fund.
 
 7      (c)  A separate special fund shall be established for each
 
 8 housing project or system of housing projects financed from the
 
 9 proceeds of bonds secured under the same trust indenture.  Each
 
10 fund shall be designated "housing project bond special fund" and
 
11 shall bear additional designation as the corporation deems
 
12 appropriate to properly identify the fund.
 
13      (d)  Notwithstanding any other law to the contrary, all
 
14 revenues, income, and receipts derived from a housing project or
 
15 system of projects financed from the proceeds of bonds or pledged
 
16 to the payment of principal of and interest and premium on bonds,
 
17 shall be paid into the housing project bond special fund
 
18 established for such housing project or system of housing
 
19 projects and applied as provided in the proceedings authorizing
 
20 the issuance of such bonds.] expended to carry out the purposes
 
21 of this section."
 
22      SECTION 24.  Section 201E-132, Hawaii Revised Statutes, is
 

 
 
 
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 1 amended to read as follows:
 
 2      "§201E-132  Rental assistance [revolving fund.(a)  There
 
 3 is created a rental assistance revolving fund to be administered
 
 4 by the corporation.
 
 5      (b)  The aggregate principal sum in the rental assistance
 
 6 revolving fund which may without limitation include sums]
 
 7 receipts; source of operating funds.  (a)  All moneys made
 
 8 available to the corporation from any government program or
 
 9 grant, from private grants or contributions, from the proceeds of
 
10 any bond issue, or by appropriation, shall be invested by the
 
11 corporation in a manner which will maximize the rate of return on
 
12 investment [of the fund]; provided that any investment shall be
 
13 consistent with section 201E-54 but need not comply with section
 
14 36-21.
 
15      [(c)] (b)  The corporation may use, as needed, the aggregate
 
16 principal sum and the accumulated earnings in [the rental
 
17 assistance revolving fund] moneys under this section to make
 
18 payments under the rental assistance contracts or to subsidize
 
19 tenants' rents in projects developed under part II; provided that
 
20 the corporation shall use up to $25,000,000 plus any bond
 
21 proceeds to provide interim construction financing to:
 
22      (1)  Qualified sponsors who are private nonprofit or profit
 

 
 
 
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 1           entities; or
 
 2      (2)  The corporation,
 
 3 for the development of affordable rental housing; provided
 
 4 further that the corporation, in allotting interim construction
 
 5 financing moneys pursuant to this part, shall give preference to
 
 6 rental housing projects developed by qualified sponsors who are
 
 7 private nonprofit or profit entities."
 
 8      SECTION 25.  Section 201E-191, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "[[]§201E-191[]  Housing alteration revolving loan fund for]
 
11 Assistance to persons with physical disabilities.  [There is
 
12 created a housing alteration revolving loan fund for persons with
 
13 physical disabilities, to be administered by the corporation as a
 
14 separate fund from the other funds under this chapter.  The fund]
 
15 All moneys to carry out the purposes of this subpart shall be
 
16 appropriated by the legislature out of the proceeds of the
 
17 general fund.  The corporation shall provide low interest loans
 
18 to eligible persons with physical disabilities or their
 
19 caregivers to make design alterations for the purposes of this
 
20 subpart; provided that the maximum loan shall be $25,000 per
 
21 residence occupied by one or more eligible persons with physical
 
22 disabilities.  Any funds appropriated for the purpose of [the
 

 
 
 
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 1 housing alteration revolving loan fund for] assisting persons
 
 2 with physical disabilities and all moneys received or collected
 
 3 by the corporation for the purpose of [the revolving fund] this
 
 4 section shall be used for loans under this subpart; provided that
 
 5 interest earned on funds appropriated [for the housing alteration
 
 6 revolving loan fund] by the legislature may be used by the
 
 7 corporation for administrative purposes."
 
 8      SECTION 26.  Section 201E-192, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§201E-192  Program administration.  The corporation, in
 
11 administering the housing alteration [revolving loan fund]
 
12 program, shall establish the terms and conditions, maturities,
 
13 interest rates, collateral, and other requirements for loans.
 
14 The corporation shall have the power to take all necessary
 
15 actions to collect any delinquent amounts in the event of a
 
16 default in the payment of any installment of principal or
 
17 interest on any loans made [from the fund] under this subpart and
 
18 to otherwise secure such loans in a manner which affords
 
19 reasonable protection of the State's resources.  The corporation
 
20 may enter into agreements with or purchase services required for
 
21 the purposes of this subpart from any state or national bank
 
22 authorized to accept or hold deposits in the State."
 

 
 
 
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 1      SECTION 27.  Section 201E-193, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§201E-193[]]  Rules.  The corporation, in consultation
 
 4 with the commission on persons with disabilities, shall adopt
 
 5 rules in accordance with chapter 91 with respect to the
 
 6 administration of this program [and the fund,] including, but not
 
 7 limited to, rules concerning income eligibility, certification of
 
 8 medical necessity, and degree of physical disability."
 
 9      SECTION 28.  Section 201E-203, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "[[]§201E-203[]]  Bond financing.  The director of finance
 
12 may issue general obligation bonds and short term project notes
 
13 of the State in the aggregate amount not to exceed $105,000,000
 
14 [for the dwelling unit revolving fund created by section
 
15 201E-204.] to finance the development of dwelling units or
 
16 reimburse the general fund.
 
17      Pending the receipt of funds from the issuance and sale of
 
18 such bonds and notes, the amount required for the purposes of
 
19 this chapter shall be advanced from the general fund of the
 
20 State.  Upon the receipt of the bond or note funds, the general
 
21 fund shall be reimbursed.  [The director of finance may sequester
 
22 and separate the proceeds from sale of the bonds and notes into
 

 
 
 
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 1 separate funds and the amounts in either fund may be used for any
 
 2 of the purposes set forth in this chapter.]"
 
 3      SECTION 29.  Section 201E-204, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§201E-204  Dwelling unit [revolving fund.  There is created
 
 6 a dwelling unit revolving fund.  The funds appropriated for the
 
 7 purpose of the dwelling unit revolving fund and all moneys
 
 8 received or collected by the corporation for the purpose of the
 
 9 revolving fund shall be deposited in the revolving fund.  The
 
10 proceeds in the revolving fund shall be used to reimburse the
 
11 general fund.] development.  All moneys to carry out the
 
12 development of dwellings under this part shall be appropriated by
 
13 the legislature or out of the proceeds of general obligation
 
14 bonds.  Moneys appropriated by the legislature under this section
 
15 shall be expended to pay the interest on general obligation bonds
 
16 issued for the purposes of the [revolving fund,] dwelling unit
 
17 development program, for the necessary expenses in administering
 
18 this part, and for carrying out the purposes of this part,
 
19 including, but not limited to, the expansion of community
 
20 facilities constructed in conjunction with housing projects, and
 
21 supplementing building costs, federal guarantees required for
 
22 operational losses, and all things required by any federal agency
 

 
 
 
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 1 in the construction and receipt of federal funds for housing
 
 2 projects."
 
 3      SECTION 30.  Section 201E-207, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§201E-207  [Homes revolving fund.  (a)  There is created a
 
 6 separate revolving fund to be administered by the corporation and
 
 7 to be designated as the "homes revolving fund".]  Affordable
 
 8 homes development.  (a)  The development of affordable homes
 
 9 [revolving fund] shall be funded from the proceeds of general
 
10 obligation bonds of the State, revenue bonds, or other evidences
 
11 of indebtedness of the State or the corporation, as may be
 
12 authorized by the legislature from time to time, or from other
 
13 sources as the legislature may determine.
 
14      (b)  Pending authorization and issuance of such obligations,
 
15 the director of finance, with the approval of the governor, may
 
16 advance $145,000,000, or so much thereof as is requested by the
 
17 corporation, [to the homes revolving fund] from moneys available
 
18 in the general fund; provided that the moneys advanced from the
 
19 general fund shall be repaid by the corporation or by the State
 
20 from the proceeds of obligations issued for the purposes of the
 
21 fund, or from other sources.
 
22      (c)  The corporation shall not be required to pay interest
 

 
 
 
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 1 on any general fund moneys advanced to [the homes revolving fund]
 
 2 as provided in subsection (b)."
 
 3      SECTION 31.  Section 201E-207.5, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§201E-207.5  Use of [homes revolving fund.] proceeds to
 
 6 develop affordable housing.  (a)  Moneys [on deposit in the homes
 
 7 revolving fund] generated through the sale of bonds or
 
 8 appropriations made by the legislature shall be applied by the
 
 9 corporation from time to time for the purposes of developing and
 
10 implementing affordable housing programs.  The corporation shall
 
11 provide the governor with a summary of any program to be
 
12 developed, setting forth the various aspects of the program,
 
13 including any projects or loan programs to be a part of the
 
14 program, the methods of financing projects or loans, the
 
15 programs, and other information as the corporation deems relevant
 
16 or as the governor may request.  Any affordable housing program
 
17 may include, without limitation, development of infrastructure,
 
18 development of off-site and on-site improvements required for
 
19 development, providing short-term or interim construction loans,
 
20 development and construction of housing, and advancing equity
 
21 capital for the rental housing system administered by the
 
22 corporation.  The corporation shall adopt rules in accordance
 

 
 
 
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 1 with chapter 91 with respect to the administration of any program
 
 2 and may adopt rules applicable to a single program which are
 
 3 different from rules applicable to other programs.
 
 4      (b)  Moneys [on deposit in the homes revolving fund] under
 
 5 this section shall be expended by the corporation, subject to the
 
 6 following conditions and limitations:
 
 7      (1)  Any expenditure [from the homes revolving fund] shall
 
 8           be made only upon the approval of the governor, after
 
 9           the board of directors of the corporation has
 
10           determined that the purposes and amounts for which the
 
11           moneys are to be applied are consistent with the
 
12           purposes of this section;
 
13      (2)  Expenditures of advances from the general fund
 
14           authorized by section 201E-207 may be made by the
 
15           corporation from time to time with the approval of the
 
16           director of finance, who may establish procedures and
 
17           prescribe rules for controlling the expenditure and
 
18           encumbrance of those funds;
 
19      (3)  Expenditures from the proceeds of general obligation
 
20           bonds, revenue bonds, other evidences of indebtedness
 
21           of the State as may be authorized, or from sources in
 
22           excess of the amount advanced from the general fund
 

 
 
 
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 1           under section 201E-207, may be expended with the
 
 2           approval of the corporation's board of directors for
 
 3           any authorized purpose, and with the approval of the
 
 4           director of finance and the governor, for any
 
 5           authorized purpose; and
 
 6      (4)  Moneys [from the homes revolving fund] under this
 
 7           section shall not be used for mortgage loans or to pay
 
 8           administrative expenses.
 
 9      (c)  The corporation shall maintain proper books and records
 
10 showing, among other things, the amount and purpose of the
 
11 application of moneys [on deposit in the homes revolving fund and
 
12 the source of the moneys, and separate accounting for earnings on
 
13 moneys on deposit in the homes revolving fund] appropriated by
 
14 the legislature and proceeds of advances from the general fund
 
15 and proceeds of borrowings."
 
16      SECTION 32.  Section 201E-217, Hawaii Revised Statutes, is
 
17 amended:
 
18      1.  By amending its title and subsection (a) to read as
 
19 follows:
 
20      "§201E-217  [Hawaii development revolving fund.(a)  There
 
21 shall be a revolving fund to be known as the Hawaii development
 
22 revolving fund which shall be administered by the corporation.]
 

 
 
 
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 1 Loans and grants.  (a)  All repayments of principal and interest
 
 2 on loans or grants made by the corporation [from the fund] shall
 
 3 be [placed in the Hawaii development revolving fund to be used
 
 4 for the purposes of this section.] deposited to the credit of the
 
 5 general fund."
 
 6      2.  By amending subsection (c) to read as follows:
 
 7      "(c)  [In managing the fund, the] The corporation may
 
 8 cooperate with other public and private nonprofit organizations
 
 9 and may enter into loan or grant agreements with them.  The
 
10 necessity for the extent and nature of security required for a
 
11 loan or grant shall be determined by the corporation.  The
 
12 security may include, but is not limited to, a borrowing
 
13 resolution of the nonprofit organization.
 
14      The foregoing powers are subject, however, to the following
 
15 restrictions and limitations:
 
16      (1)  No single loan or grant shall exceed two per cent of
 
17           the project cost;
 
18      (2)  The loan shall be repaid with simple interest not to
 
19           exceed six per cent per year; and
 
20      (3)  The moneys loaned shall be used only for the planning,
 
21           engineering, feasibility studies, and other initial
 
22           costs of commencing projects to provide nonprofit low
 

 
 
 
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 1           or moderate cost housing."
 
 2      SECTION 33.  Section 206M-15.5, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§206M-15.5[]  High technology special fund.  There is
 
 5 established in the state treasury a fund to be known as the high
 
 6 technology special fund, into which shall be deposited all moneys
 
 7 and fees from tenants or other users of the development
 
 8 corporation's industrial parks, projects, other leased
 
 9 facilities, and other services and publications.  All moneys in
 
10 the fund are hereby appropriated for the purposes of and shall be
 
11 expended by the development corporation for the operation,
 
12 maintenance, and management of its industrial parks, projects,
 
13 facilities, services, and publications.] Industrial parks,
 
14 projects, leased facilities, and other services; source of funds.
 
15 (a)  All moneys necessary for the operation, maintenance, and
 
16 management of industrial parks, projects, facilities, and
 
17 services, and for the funding of publications shall be allocated
 
18 by the legislature through appropriations out of the state
 
19 general fund.  The development corporation shall include in its
 
20 budgetary request for each upcoming fiscal period, the amounts
 
21 necessary to effectuate the purposes of this section.
 
22      (b)  All moneys and fees received from tenants or other
 

 
 
 
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 1 users of the development corporation's industrial parks,
 
 2 projects, other leased facilities, and other services and
 
 3 publications shall be deposited to the credit of the state
 
 4 general fund."
 
 5      SECTION 34.  Section 206X-7, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (c) to read as follows:
 
 7      "(c)  As a further condition and consideration of the right
 
 8 to develop the real property within the convention center
 
 9 district under the agreement and pursuant to this chapter, the
 
10 developer shall pay a reasonable sum determined by the authority
 
11 as contribution for the payment of costs relating to:
 
12      (1)  The temporary or permanent relocation of existing
 
13           licensees and lessees, if any, who are displaced
 
14           because of the development within the convention center
 
15           district pursuant to the convention center development
 
16           plan by the developer; or
 
17      (2)  Settlement payments in lieu of payments provided under
 
18           paragraph (1) to existing licensees and lessees, if
 
19           any, who are displaced by the developer because of the
 
20           development within the convention center district
 
21           pursuant to the convention center development plan;
 
22 provided that each displaced licensee or lessee shall have the
 

 
 
 
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 1 option to select either relocation or a settlement payment.
 
 2      Upon the approval by the authority of the relocation plan,
 
 3 which shall be prepared and submitted by the developer to the
 
 4 authority, the developer shall deliver to the authority for
 
 5 deposit [into the convention center capital and operations
 
 6 special] to the credit of the state general fund the sum
 
 7 determined by the authority in the form of a certified check, an
 
 8 irrevocable letter of credit, or surety bond.  The sum determined
 
 9 by the authority shall be used for the implementation of the
 
10 relocation plan; provided that the sum and all interest accrued
 
11 thereon shall be refunded to the developer in the event this
 
12 chapter expires and becomes void.
 
13      The relocation plan shall include an agreement by the
 
14 developer to give every displaced licensee or lessee who does not
 
15 elect to receive a settlement payment under paragraph (2) an
 
16 unassignable right of first refusal of any license or lease of
 
17 space within the convention center district developed and offered
 
18 for those activities similar in size and nature to the business
 
19 conducted by the licensee or lessee at the time of displacement,
 
20 unless this right is waived by any licensee or lessee.
 
21      The authority shall establish a task force to assist in the
 
22 implementation of the relocation plan.  The task force shall
 

 
 
 
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 1 include persons representing agencies, organizations, government,
 
 2 and private interests."
 
 3      SECTION 35.  Section 210D-4, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§210D-4 Hawaii community-based economic development
 
 6 [revolving fund; established.  There is established a revolving
 
 7 fund to be known as the Hawaii community-based economic
 
 8 development revolving fund from which moneys shall be loaned,
 
 9 granted by the department under this chapter.  All moneys
 
10 appropriated to the fund by the legislature, received as
 
11 repayments of loans, payments of interest or fees, received as
 
12 royalties, shall be deposited into the revolving fund and used
 
13 for the purposes of this chapter.  The department may use all
 
14 appropriations and other moneys in the revolving fund not
 
15 appropriated for a designated purpose to make grants or loans,
 
16 provided that at no time shall the department reallocate funds
 
17 from the loan program to the grant program so that insufficient
 
18 funds remain available to make loans.] program; source of
 
19 operating funds.  (a)  All moneys to carry out the purposes of
 
20 the Hawaii community-based program under this chapter shall be
 
21 loaned or granted by the department or allocated by the
 
22 legislature through appropriations out of the state general fund.
 

 
 
 
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 1 The department shall include in its budgetary request for each
 
 2 upcoming fiscal period, the amounts necessary to effectuate the
 
 3 purposes of this section.
 
 4      (b)  All moneys received in repayment of loan principal,
 
 5 interest, and fees shall be deposited to the credit of the state
 
 6 general fund."
 
 7      SECTION 36.  Section 210D-8, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§210D-8 Powers and duties.  The department shall have the
 
10 necessary powers to carry out the purposes of this chapter,
 
11 including the following:
 
12      (1)  With advice from the council, prescribe the
 
13           qualifications for eligibility of applicants for loans
 
14           and grants;
 
15      (2)  With advice from the council, establish preferences and
 
16           priorities in determining eligibility for financial
 
17           assistance;
 
18      (3)  Establish the conditions, consistent with the purpose
 
19           of this chapter, for the awarding of financial
 
20           assistance;
 
21      (4)  Provide for inspection at reasonable hours of
 
22           facilities, books, and records of a community-based
 

 
 
 
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 1           organization which has applied for or has been awarded
 
 2           financial assistance and require the submission of
 
 3           progress and final reports;
 
 4      (5)  Provide loans, and grants for community-based economic
 
 5           development activities and community-based enterprises
 
 6           for purposes consistent with this chapter;
 
 7      (6)  Determine the necessity for and the extent of security
 
 8           required in a loan;
 
 9      (7)  Prescribe and provide appropriate management counseling
 
10           and monitoring of business activities;
 
11     [(8)  Administer the Hawaii community-based economic
 
12           development revolving fund;
 
13      (9)] (8)  Include in its budget for subsequent fiscal
 
14           periods amounts necessary to effectuate the purposes of
 
15           this chapter;
 
16    [(10)] (9)  Participate in loans made to qualified persons by
 
17           private lenders;
 
18    [(11)] (10)  Establish interest rates chargeable by the State
 
19           for direct and participation loans; and
 
20    [(12)] (11)  Adopt rules pursuant to chapter 91 to implement
 
21           this chapter."
 
22      SECTION 37.  Section 211F-5, Hawaii Revised Statutes, is
 

 
 
 
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 1 amended to read as follows:
 
 2      "[[]§211F-5[]]  Hawaii strategic development corporation
 
 3 [revolving fund.  There is established the Hawaii strategic
 
 4 development corporation revolving fund.  The following moneys
 
 5 shall be deposited into the Hawaii strategic development
 
 6 corporation revolving fund and shall not be considered part of
 
 7 the general fund:  all moneys appropriated by the legislature,
 
 8 received]; source of operating funds; disposition of of revenues.
 
 9 All moneys to carry out the purposes of this chapter shall be
 
10 allocated by the legislature out of the proceeds of the general
 
11 fund.  All moneys received by the corporation as repayments of
 
12 loans, [earned] as earnings on investments, [received] pursuant
 
13 to a venture agreement, [received] as royalties, [received] as
 
14 premiums or fees charged by the corporation, or otherwise
 
15 received by the corporation[.] shall be deposited to the credit
 
16 of the general fund."
 
17      SECTION 38.  Section 227D-5, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§227D-5 [Special fund.  There is established in the state
 
20 treasury a fund to be known as the natural energy laboratory of
 
21 Hawaii authority special fund, into which shall be deposited all
 
22 moneys and fees from tenants or other users of the authority's
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 parks, projects, other leased facilities, and other services and
 
 2 publications as well as any grants or gifts received by the
 
 3 authority.  All moneys in the fund are appropriated for the
 
 4 purposes of and shall be expended by the authority for the
 
 5 operation, maintenance, and management of its parks, projects,
 
 6 facilities, services, and publications, and for the design and
 
 7 construction of new facilities and the renovation of or addition
 
 8 to existing facilities.] Project operating funds; disposition of
 
 9 receipts.  (a)  All moneys for the operation, maintenance, and
 
10 management of the natural energy laboratory, and any park,
 
11 project, facility, service, or publication of the authority shall
 
12 be allocated by the legislature through appropriations out of the
 
13 state general fund.  The authority shall include in its budgetary
 
14 request for each upcoming fiscal period, the amounts necessary to
 
15 effectuate the purposes of this section.
 
16      (b)  All moneys and fees collected from tenants and other
 
17 users of the authority's parks, projects, leased facilities,
 
18 other services, and publications shall be deposited to the credit
 
19 of the state general fund."
 
20      SECTION 39.  Section 296-36.5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "[[]§296-36.5[]]  Department of education storeroom[;
 

 


 

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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 revolving fund].  There shall be a storeroom established by the
 
 2 department of education to provide schools a source for commonly
 
 3 used educational, office, and custodial supplies.  [There is
 
 4 established a revolving fund to be known as the "storeroom
 
 5 revolving fund," into which shall be deposited the receipts from
 
 6 charges made to schools for the supplies and cost of issuing such
 
 7 supplies from the storeroom and transfers from other accounts or
 
 8 funds.  Receipts and transfers deposited into the storeroom
 
 9 revolving fund may be expended to purchase educational, office,
 
10 and custodial supplies, and equipment and services needed to
 
11 operate the storeroom.  Balances in excess of $400,000 at the end
 
12 of each fiscal year shall lapse into the general fund.] All
 
13 moneys to purchase commonly used educational, office, and
 
14 custodial supplies shall be allocated by the legislature through
 
15 appropriations out of the state general fund.  The department
 
16 shall include, in its budgetary request for each upcoming fiscal
 
17 period, the amounts necessary to effectuate the purposes of this
 
18 section.  All receipts from charges made to schools for the
 
19 supplies from the storeroom shall be deposited to the credit of
 
20 the state general fund."
 
21      SECTION 40.  Section 304-8.93, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      "[[]§304-8.93[]  Library special fund.  There is established
 
 2 a special fund for the libraries of the University of Hawaii into
 
 3 which shall be deposited all] Disposition of library revenues.
 
 4 All fines, fees, and other revenue derived from the libraries'
 
 5 operations[.] shall be deposited to the credit to the general
 
 6 fund.  [Moneys deposited in this fund may be expended to replace]
 
 7 All moneys for the replacement or repair of lost, damaged,
 
 8 stolen, or outdated books, serials, and periodicals, or to
 
 9 support and improve the services provided by the libraries[.]
 
10 shall be appropriated by the legislature out of the general fund.
 
11 The amounts allocated to each campus library [from the special
 
12 fund] by the legislature shall be proportionate to the amount of
 
13 revenues generated by each library."
 
14      SECTION 41.  Section 304-8.94, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "[[]§304-8.94[]] Conference center [revolving fund.] fees;
 
17 disposition and expenditure.  [There is established a revolving
 
18 fund for the conference center program in the college of
 
19 continuing education and community service of the University of
 
20 Hawaii, Manoa campus.]  All fees, charges, and other moneys
 
21 collected in conjunction with the conference center program shall
 
22 be deposited in the [revolving] general fund.  [The dean of the
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 college of continuing education and community service is
 
 2 authorized to expend funds from the revolving fund for all] All
 
 3 moneys necessary to meet the costs associated with conducting
 
 4 conferences, seminars, and courses by the conference center
 
 5 program, including but not limited to, expenses for honoraria,
 
 6 hotel and room rentals, food and refreshment, printing and
 
 7 mailing, airfare and per diem, leis, rental of audio-visual
 
 8 equipment, and conference supplies and materials[, without regard
 
 9 to chapter 103D and section 103-42.] shall be appropriated by the
 
10 legislature out of the proceeds of the general fund."
 
11      SECTION 42.  Section 304-8.95, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "[[]§304-8.95[]]  Hawaii opportunity program in education.
 
14 (a)  [There is created in the treasury of the State, the Hawaii
 
15 opportunity program in education (HOPE) special fund.]  All
 
16 moneys to carry out the purposes of the Hawaii opportunity
 
17 program in education (HOPE) shall be appropriated by the
 
18 legislature out of the proceeds of the general fund.
 
19 Expenditures [from] of the HOPE [special fund] program shall be
 
20 limited to[:
 
21      (1)  Providing] providing funds to award scholarships for
 
22           the University of Hawaii to financially needy students
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           with priority given to students from ethnic groups
 
 2           which are under-represented in the student population
 
 3           of the University of Hawaii[; and
 
 4      (2)  Pay all costs incident to the prudent investment of the
 
 5           principal and income deposited in the special fund.
 
 6 Appropriations or authorizations from the HOPE special fund shall
 
 7 be expended by the University of Hawaii.
 
 8      (b)  The special fund shall be administered by the director
 
 9 of finance who shall also be responsible for investing the
 
10 principal and income deposited therein in accordance with the
 
11 provisions of chapters 36 and 38 or, at the director's
 
12 discretion, in the same manner as the trustees of the employees
 
13 retirement system of the State are permitted to invest the funds
 
14 in their custody and control under sections 88-119, 88-119.5,
 
15 88-121, and 88-121.5.  The director may pay a reasonable amount
 
16 to any person for servicing and handling mortgages which the
 
17 director may purchase or for supplying investment advisory or
 
18 consultative services, and to meet other costs incident to the
 
19 prudent investment of the special fund].
 
20      (c)  Scholarship awards for the University of Hawaii, funded
 
21 by sums [from the HOPE special fund,] allocated by the
 
22 legislature shall be made beginning in the fiscal year 2001, in
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 accordance with rules adopted by the board of regents pursuant to
 
 2 chapter 91.  The rules shall include criteria for determining
 
 3 under-representation of particular groups in the student
 
 4 population of the university and financial need.  Scholarship
 
 5 awards shall be made from appropriations [or authorizations from
 
 6 the HOPE special fund, and only earnings from the investment of
 
 7 principal and income on deposit in the special fund received
 
 8 after June 30, 2000, shall be available for such appropriations
 
 9 or authorizations.  The total sum appropriated or authorized for
 
10 scholarship awards in any fiscal year shall not exceed ten per
 
11 cent of the amount deposited in the special fund on June 30,
 
12 2000, and in no event shall the total sum appropriated or
 
13 authorized out of the special fund for scholarship awards in any
 
14 fiscal year cause the amount deposited in the HOPE special fund
 
15 to be less than the amount on deposit in the special fund on June
 
16 30, 2000.] by the legislature."
 
17      SECTION 43.  Section 304-8.96, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§304-8.96  University of Hawaii housing assistance
 
20 [revolving fund].  [(a)  There is established a housing
 
21 assistance revolving fund into which shall be deposited] The
 
22 legislature shall allocate not more than twelve per cent of the
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 total indirect overhead funds generated by the university for
 
 2 research and training purposes in the prior fiscal year[.  The
 
 3 fund shall be used] to:
 
 4      (1)  Implement the University of Hawaii housing assistance
 
 5           master plan, in accordance with policies adopted by the
 
 6           board of regents; and
 
 7      (2)  Account for all transactions of the university housing
 
 8           assistance program, including but not limited to
 
 9           revenues, expenditures, loans, and transfers.
 
10      [(b)  The University of Hawaii shall provide an annual
 
11 report to the governor and the legislature describing all
 
12 transactions and activities involved in the administration of the
 
13 housing assistance revolving fund.]"
 
14      SECTION 44.  Section 304-8.97, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§304-8.97  University of Hawaii alumni [revolving fund.]
 
17 revenues; disposition of receipts.  [There is established a
 
18 revolving fund to be known as the University of Hawaii alumni
 
19 revolving fund, into which shall be deposited funds and] All
 
20 proceeds received by the university from alumni activities and
 
21 donations from alumni[.  Funds deposited into this account may be
 
22 expended by the university] shall be deposited to the credit of
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the general fund.  All moneys necessary for [all] the costs
 
 2 associated with conducting alumni affairs activities and programs
 
 3 for the university system, including but not limited to expenses
 
 4 for honoraria, hotel and room rentals, food and refreshment,
 
 5 printing and mailing, banners and signs, plaques and awards,
 
 6 airfare and per diem, leis, rental of audio visual, musical and
 
 7 stage equipment, and activity supplies and materials, shall be
 
 8 appropriated by the legislature out of the proceeds of the
 
 9 general fund without regard to statutory competitive bidding
 
10 requirements."
 
11      SECTION 45.  Section 304-33, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§304-33  State aquarium [special fund.  There is
 
14 established a special fund into which shall be deposited all]
 
15 program; disposition of receipts; source of operating revenues.
 
16 All revenues derived from all admission fees collected in
 
17 conjunction with the operation of the state aquarium[.  Moneys
 
18 deposited in this fund shall be expended] shall be deposited to
 
19 the credit of the general fund.  All moneys necessary for the
 
20 operation of the state aquarium[.  The special fund shall not be
 
21 subject to sections 36-27 and 36-30 relating to special fund
 
22 reimbursements to the state general fund.] shall be appropriated
 

 
 
 
Page 54                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 by the legislature out of the proceeds of the general fund."
 
 2      SECTION 46.  Section 312-3.6, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§312-3.6[]  Libraries special fund.(a)  There is
 
 5 established in the state treasury a libraries special fund into
 
 6 which shall be deposited all moneys collected pursuant to section
 
 7 312-3.5.] Disposition of the proceeds of penalties.  (a)  All
 
 8 moneys collected under section 312-3.5 shall be deposited to the
 
 9 credit of the general fund.
 
10      (b)  The [fund shall be administered by the] state librarian
 
11 [who] shall, unless otherwise directed by the library advisory
 
12 committee, disburse to each public library, the amount
 
13 commensurate with the moneys received from the library under
 
14 section 312-3.5 over the previous fiscal period.  Allocations
 
15 shall be made in quarterly installments within thirty days of the
 
16 end of each calendar quarter.
 
17      (c)  Moneys allocated [from the libraries special fund] by
 
18 the legislature to the public libraries shall be used to purchase
 
19 books or other library materials.  Each public library may post
 
20 on a bulletin board or other appropriate place a list of the
 
21 purchases made [from the special fund] in the preceding quarter.
 
22      (d)  The state librarian shall submit an annual report on
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the [status] expenditures of the libraries [special fund, to
 
 2 include], including deposits into the general fund and the source
 
 3 of these revenues, allocations to each public library,
 
 4 descriptions and amounts of expenditures [made from the fund],
 
 5 and balances remaining on June 30 of each year; provided that
 
 6 this report shall be submitted to the legislature and to the
 
 7 governor, or the director of finance if so delegated by the
 
 8 governor, no later than twenty days prior to the convening of
 
 9 each regular session of the legislature."
 
10      SECTION 47.  Section 321-25, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§321-25  Hawaii registered nurse student loan [fund.]
 
13 program; source of funds.  (a)  [There is established a special
 
14 fund to be known as the Hawaii registered nurse student loan
 
15 fund, from which moneys] All moneys appropriated by the
 
16 legislature to carry out the purposes of the registered nurse
 
17 student loan program shall be loaned by the department for the
 
18 purposes of this section [and into which shall be deposited all].
 
19 All moneys received as repayment for loans as provided for in
 
20 this section[.  All], including all interest and fees collected
 
21 by the department shall be deposited [in a loan reserve fund to
 
22 the extent necessary to carry on the operations of this program.]
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 to the credit of the general fund.  [All payments received on
 
 2 account of principal shall be credited to the Hawaii registered
 
 3 nurse student loan fund, which shall maintain a proper reserve to
 
 4 guarantee sufficient loans for purposes of this section.]
 
 5      (b)  The [Hawaii registered nurse student loan fund]
 
 6 department shall provide loans to selected eligible applicants at
 
 7 not more than five per cent interest per year.  The loan amounts
 
 8 shall be used first for payment of tuition and second for other
 
 9 necessary financial assistance in connection with obtaining a
 
10 degree or certificate from an accredited degree-granting
 
11 university, college, or nursing institution in Hawaii.
 
12 Preference for selection of eligible applicants shall be given
 
13 first to students pursuing a career as a registered nurse, and
 
14 second to students pursuing specialized training for a career as
 
15 a nurse practitioner.
 
16      (c)  In the event that no accredited specialized nursing
 
17 educational programs are available in Hawaii, the director of
 
18 health, in consultation with the screening and selection panel,
 
19 shall give consideration for loan approval to fund training at an
 
20 accredited degree-granting or certificate-granting university,
 
21 college, or nursing institution outside the State of Hawaii.
 
22      (d)  Repayments of loans shall commence twelve months after
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the recipient has graduated, been licensed, and has obtained
 
 2 employment as a registered nurse in Hawaii; provided that loan
 
 3 beneficiaries shall have their repayment obligation reduced by
 
 4 twenty per cent per year for each year they work as a registered
 
 5 nurse in Hawaii.  If a student withdraws from nursing studies
 
 6 prior to graduation, graduates but does not seek employment,
 
 7 graduates and becomes employed in the State in a profession other
 
 8 than as a registered nurse, or graduates and becomes employed in
 
 9 any field outside of the State of Hawaii, repayment shall
 
10 commence immediately.  The [fund] program shall be implemented on
 
11 the basis of legislative appropriations as the legislature may
 
12 deem appropriate.  The [fund] department may also accept
 
13 donations from any legitimate source, including federal and
 
14 private grants and gifts from private foundations or endowment
 
15 organizations.  [Any unencumbered balance, including moneys other
 
16 than legislative appropriations, remaining in the fund as of the
 
17 close of business on June 30, 2000, shall lapse into the general
 
18 fund.]
 
19      (e)  No loan shall be made after June 30, 1995."
 
20      SECTION 48.  Section 321-26, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "[[]§321-26[]]  Rules.  The director of health, in
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 consultation and collaboration with appropriate medical,
 
 2 regulatory, educational, financial, and nursing personnel,
 
 3 resources, or groups in Hawaii shall adopt rules pursuant to
 
 4 chapter 91 to effectuate the purposes of the registered nurse
 
 5 student financial support program [and the Hawaii registered
 
 6 nurse student loan fund] established in sections 321-24 and
 
 7 321-25.  The rules shall establish at a minimum:
 
 8      (1)  The administrative organization of the program;
 
 9      (2)  Qualifications of loan applicants and recipients;
 
10      (3)  A standard contract to be executed by the recipient and
 
11           the applicable program officer stipulating to the
 
12           conditions of the loan, its duration and amount, the
 
13           interest rate, the repayment schedule and its
 
14           obligations, and other items generally included in
 
15           standard student loan contracts;
 
16      (4)  An accounting system for tracking appropriations and
 
17           other contributions, expenditures for loans and
 
18           operating expenses, repayments of loans and interest,
 
19           accounts due and payable, loans due and payable, and
 
20           any other activities generally associated with standard
 
21           accounting practices;
 
22      (5)  Positions required to administer the program [and the
 

 
 
 
Page 59                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           loan fund], and the minimum qualifications, duties, and
 
 2           remuneration for each incumbent, including applicable
 
 3           benefits;
 
 4      (6)  Program application, loan application, and any other
 
 5           forms necessary to efficiently and effectively carry
 
 6           out the purposes of the program [and the loan fund];
 
 7      (7)  Formal and informal avenues of communication between
 
 8           the program and nursing and education institutions; the
 
 9           department of health and other applicable state and
 
10           county agencies; the health care industry in Hawaii,
 
11           including hospitals, clinics, and private facilities
 
12           which employ registered nurses; financial institutions;
 
13           and any other individuals or groups who could assist in
 
14           increasing the pool of licensed registered nurses in
 
15           Hawaii;
 
16      (8)  Minimum standards of conduct for loan recipients;
 
17      (9)  Sanctions for violating the provisions of contracts
 
18           executed pursuant to paragraph (3); other agreements,
 
19           whether oral, written, or implied, relating to the
 
20           recipient's obligations under the program; and the
 
21           standards of conduct adopted pursuant to paragraph (8);
 
22           and
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1     (10)  Any other procedures, requirements, or things necessary
 
 2           to successfully carry out the intent and purpose of the
 
 3           program [and loan funds] created by this section."
 
 4      SECTION 49.  Section 323-73, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§323-73  [Establishment of special funds.(a)  Each public
 
 7 health facility shall place its revenues and all other moneys
 
 8 collected, acquired, or made available for the use of that
 
 9 facility, into a special fund to be used for the payment of its
 
10 lawful operating expenditures, except that:
 
11      (1)  Any moneys received from the federal government or
 
12           private contributions shall be deposited and accounted
 
13           for in accordance with conditions established by the
 
14           agencies or persons from whom the moneys are received;
 
15      (2)  With the concurrence of the director of finance, moneys
 
16           in trust or revolving funds administered by the
 
17           community hospitals may be deposited in depositories
 
18           other than the state treasury; and
 
19      (3)  Amounts of less than $1,000 collected from patients and
 
20           health insurance providers shall be deposited into the
 
21           appropriate collections revolving fund established
 
22           under section 323-74.
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 At the beginning of each quarterly allotment period, the director
 
 2 shall assess from each hospital special fund an amount equal to
 
 3 two per cent of the moneys in the hospital special fund and
 
 4 deposit those amounts into the facility administration fund
 
 5 established in subsection (b).  At the end of each quarterly
 
 6 allotment period, the director shall transfer all moneys
 
 7 remaining in a hospital special fund not required for the lawful
 
 8 operating expenditures of the hospital for that quarterly
 
 9 allotment period into the facility administration fund.  Public
 
10 health facilities that do not receive general fund augmentation
 
11 may retain one hundred per cent of their unrequired special fund
 
12 revenues in their respective hospital special funds for payment
 
13 of their lawful operating expenditures.
 
14      (b)  There is established within the department of health a
 
15 special fund to be known as the facility administration fund.
 
16 The facility administration fund shall be used to defray the
 
17 general administrative costs of the division and provide
 
18 supplemental funds to public health facilities that do not have
 
19 sufficient moneys in their special funds to cover their required
 
20 lawful operating expenditures, including contingencies for
 
21 correcting hospital deficiencies cited by agencies that monitor
 
22 and evaluate the division.
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (c)  Any other law to the contrary notwithstanding, a
 
 2 separate special fund shall be established for each system of
 
 3 public health facilities for which revenue bonds have been
 
 4 issued.  All income, revenues, and receipts derived from the
 
 5 ownership or operation of the particular system shall be
 
 6 deposited in the special fund and applied in accordance with
 
 7 section 39-62 and the resolution or certificate authorizing and
 
 8 securing the revenue bonds.  For the purposes of determining the
 
 9 amount to be assessed against a special fund established pursuant
 
10 to this subsection, the director may separately allocate a
 
11 portion of the special fund to each separate public health
 
12 facility that constitutes a component of the system, or assess
 
13 from the special fund as a whole.
 
14      (d)  The director shall submit an annual report to the
 
15 legislature, twenty days prior to the convening of each regular
 
16 session, that identifies all fund balances and ceiling increases
 
17 in the various hospital and facility funds, the transfers and
 
18 expenditures made from the funds, and the purposes of the
 
19 expenditures.
 
20      (e)  The division shall maintain the budgetary organization
 
21 codes utilized in fiscal year 1994-1995 for each public health
 
22 facility as an internal reporting and accounting mechanism.]
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 Division of community hospitals; funds; assistance to public
 
 2 health facilities.  (a)  All moneys to cover the general
 
 3 administrative and operating costs of the division of community
 
 4 hospitals and shall be allocated by the legislature through
 
 5 appropriations out of the state general fund.
 
 6      (b)  All moneys to support those public health facilities
 
 7 that do not have sufficient moneys to cover their operating
 
 8 expenditures, including contingencies for correcting hospital
 
 9 deficiencies cited by agencies which monitor and evaluate the
 
10 division, shall be allocated by the legislature, through the
 
11 division of community hospitals, out of appropriations from the
 
12 state general fund.
 
13      (c)  The department shall include in its budgetary request
 
14 for each upcoming fiscal period, the amounts necessary to
 
15 administer and operate the division of community hospitals and to
 
16 support to public health facilities requiring assistance.
 
17      (d)  All moneys received by the division from any other
 
18 source shall be deposited to the credit of the state general
 
19 fund."
 
20      SECTION 50.  Section 333F-17.5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "[[]§333F-17.5[]  Authority to establish specific funding.
 

 
 
 
Page 64                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 The department is authorized to establish and administer special
 
 2 funds for the deposit and expenditure of earned Title XIX funds
 
 3 collected for community program services provided under this
 
 4 chapter in order to maximize the use of federal funds for
 
 5 services to the developmentally disabled.]  Disposition of Title
 
 6 XIX funds.  All earned Title XIX funds collected for community
 
 7 program services under this chapter shall be deposited to the
 
 8 credit of the state general fund."
 
 9      SECTION 51.  Section 334-15, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§334-15  Mental health and substance abuse [special fund;
 
12 established.  (a)  There is established a special fund to be
 
13 known as the mental health and substance abuse special fund into
 
14 which shall be deposited all] program; disposition of receipts;
 
15 source of operating funds.  All revenues and other moneys
 
16 collected from certification programs and treatment services
 
17 rendered by the mental health and substance abuse programs
 
18 operated by the State[.  Notwithstanding any other law to the
 
19 contrary, the department is authorized to establish separate
 
20 accounts within the special fund for depositing moneys received
 
21 from certification programs and from each mental health and
 
22 substance abuse program.  Moneys deposited into the respective
 

 
 
 
Page 65                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 accounts of each program shall be used] shall be deposited to the
 
 2 credit of the general fund.  All moneys necessary for the payment
 
 3 of the operating expenses of the respective [program.] programs
 
 4 under this section shall be appropriated by the legislature out
 
 5 of the proceeds of the general fund.
 
 6      (b)  The director shall submit a report to the legislature,
 
 7 not later than twenty days prior to the convening of each regular
 
 8 session, which identifies for each [account in the special fund,
 
 9 the account balance and ceiling increase, any transfers and]
 
10 program, any expenditures made, and the purposes of the
 
11 expenditures."
 
12      SECTION 52.  Section 342B-50, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]§342B-50[]]  Disposition of collected fines and
 
15 penalties.  Fines and penalties collected under sections 342B-47,
 
16 342B-48, and 342B-49 shall be deposited [into the environmental
 
17 response revolving fund established by section 128D-2.] to the
 
18 credit of the state general fund."
 
19      SECTION 53.  Section 342D-39, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "[[]§342D-39[]]  Disposition of collected fines and
 
22 penalties.  Fines and penalties collected under this part shall
 

 
 
 
Page 66                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 be deposited [into the environmental response revolving fund
 
 2 established by section 128D-2.] to the credit of the state
 
 3 general fund."
 
 4      SECTION 54.  Section 342D-54, Hawaii Revised Statutes, is
 
 5 amended:
 
 6      1.  By amending its title to read as follows:
 
 7      "Wastewater treatment works; financial assistance[; state
 
 8 revolving fund]."
 
 9      2.  By amending subsection (c) to read as follows:
 
10      "(c)  [There is established in the state treasury a fund to
 
11 be known as the water pollution control revolving fund solely for
 
12 the purpose of providing] All federal funds to provide financial
 
13 assistance to governmental agencies for the planning, design, and
 
14 construction of wastewater treatment works owned by a
 
15 governmental agency, and for programs and plans under 33 United
 
16 States Code section 1383(c)[;] shall be held on deposit in
 
17 separate accounts within the general fund.  All moneys, including
 
18 federal funds on account in the general fund, needed to carry out
 
19 the purposes of this section shall be allocated by the
 
20 legislature out of the proceeds of the general fund; provided
 
21 that:
 
22      (1)  The director may enter into grant agreements with the
 

 
 
 
Page 67                                                    445
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           administrator of the United States Environmental
 
 2           Protection Agency and accept capitalization grants that
 
 3           shall be deposited into the [revolving] general fund;
 
 4      (2)  The financial assistance that may be provided to
 
 5           governmental agencies from federal funds [and matching
 
 6           state funds in the revolving fund] shall be limited to
 
 7           those projects and types of assistance allowed under 33
 
 8           United States Code section 1383.  Federal funds shall
 
 9           be kept in a separate account or series of accounts
 
10           from the account or accounts for state funds in the
 
11           [revolving] general fund; 
 
12      (3)  [The revolving fund shall be established, maintained,
 
13           and credited with] All loan and other financial
 
14           assistance repayments and [investment] income[, and the
 
15           fund balance] shall be [available in perpetuity for its
 
16           stated purpose;] deposited to the general fund;
 
17      (4)  The director may make and condition loans [from the
 
18           fund] as required by state or federal law.  These loans
 
19           shall:
 
20           (A)  Be made at or below market interest rates;
 
21           (B)  Require annual payments of principal and interest
 
22                with repayment commencing not later than one year
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1                after completion of the project for which the loan
 
 2                is made; and
 
 3           (C)  Be fully amortized not later than twenty years
 
 4                after project completion;
 
 5      (5)  The director shall establish fiscal controls and
 
 6           accounting procedures sufficient to assure proper
 
 7           accounting for appropriate accounting periods of
 
 8           payments and disbursements received and made [by the
 
 9           revolving fund and for fund balances at the beginning
 
10           and end of the accounting period;] under this section;
 
11      (6)  The director may enter into any necessary or required
 
12           agreement and give or make any necessary or required
 
13           assurance or certification with any person to receive
 
14           payments or grants or to make or provide any financial
 
15           assistance in conformance with 33 United States Code
 
16           sections 1381 to 1387;
 
17      (7)  No loan [from the revolving fund] shall be made unless
 
18           the loan recipient establishes a dedicated source of
 
19           revenue for the repayment of the loan;
 
20      (8)  The director shall adopt rules pursuant to chapter 91
 
21           for the purposes of this section, including but not
 
22           limited to fees for loans and other financial
 

 
 
 
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 1           assistance, and penalties for default of loan and other
 
 2           financial assistance repayments;
 
 3      (9)  If established, fees shall cover the costs of current
 
 4           activities including the issuance of loans and other
 
 5           financial assistance, monitoring of loans and other
 
 6           financial assistance repayments and conditions,
 
 7           technical review of the planning and design documents,
 
 8           monitoring of construction activities, and conducting
 
 9           operation and maintenance inspections of wastewater
 
10           facilities[, and other activities of the revolving
 
11           fund] pursuant to 33 United States Code sections 1381
 
12           to 1387; all moneys collected as fees shall be
 
13           deposited into [an administrative expense account or
 
14           accounts as needed] the general fund to comply with 33
 
15           United States Code section 1383(d)(7) and shall be used
 
16           exclusively to support the activities [of the revolving
 
17           fund;] of this section; and
 
18     (10)  Not less than twenty days prior to the convening of
 
19           each regular session of the legislature, the director
 
20           shall submit a report to the legislature of all grants
 
21           or loans made from the [revolving fund] general fund
 
22           during the last completed fiscal year, and during the
 

 
 
 
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 1           first three months of the fiscal year in progress.  For
 
 2           each grant or loan, the report shall include:
 
 3           (A)  The name of the recipient;
 
 4           (B)  The effective date of the grant or loan;
 
 5           (C)  The amount provided; and
 
 6           (D)  The intended or actual use of the funds."
 
 7      3.  By amending subsection (e) to read as follows:
 
 8      "(e)  The department of budget and finance, with the
 
 9 approval of the governor, is authorized to issue revenue bonds at
 
10 such times and in such amount or amounts, not to exceed
 
11 $250,000,000 in aggregate principal, as may be necessary to carry
 
12 out the purposes of this section.  All such bonds shall be issued
 
13 pursuant to part III of chapter 39, except as provided in this
 
14 section.  The resolution or certificate providing for the
 
15 issuance of the bonds may provide that all or part of the
 
16 proceeds of the bonds shall be deposited in the [revolving]
 
17 general fund, where the proceeds may be held and invested in a
 
18 separate account or accounts until used in accordance with
 
19 subsection (c).  For the purposes of providing a source of
 
20 revenue or security for these bonds, the director may pledge
 
21 funds [deposited or to be deposited in the revolving fund]
 
22 appropriated by the legislature to the payment or security of the
 

 
 
 
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 1 bonds or the loans, and the pledge shall constitute a lien and
 
 2 security interest on the funds to the extent and with the
 
 3 priority set forth in the document establishing the pledge,
 
 4 without physical delivery, recording, or other further act."
 
 5      SECTION 55.  Section 342F-11.5, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "[[]§342F-11.5[]]  Disposition of collected fines and
 
 8 penalties.  Fines and penalties collected under sections 342F-9
 
 9 and 342F-11 shall be deposited [into the environmental response
 
10 revolving fund established by section 128D-2.] to the credit of
 
11 the state general fund."
 
12      SECTION 56.  Section 342H-10.5, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§342H-10.5  Disposition of collected fines and penalties.
 
15 Except as otherwise provided in this section, fines and penalties
 
16 collected under sections 342H-9 and 342H-10 shall be deposited
 
17 [into the environmental response revolving fund established by
 
18 section 128D-2.] to the credit of the state general fund.  Where
 
19 a county individually, or the State and a county jointly,
 
20 initiates and conducts an investigation resulting in the
 
21 imposition and collection of a fine or penalty, pursuant to
 
22 section 342H-30(c), the fine or penalty shall be distributed as
 

 
 
 
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 1 follows:
 
 2      (1)  One half to the department of the county whose officers
 
 3           or employees initiated and conducted the investigation;
 
 4           and
 
 5      (2)  One half to the [environmental response revolving fund
 
 6           established in section 128D-2.] state general fund."
 
 7      SECTION 57.  Section 342J-10.5, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "[[]§342J-10.5[]]  Disposition of collected fines and
 
10 penalties.  Fines and penalties collected under sections 342J-9
 
11 and 342J-10 shall be deposited [into the environmental response
 
12 revolving fund established by section 128D-2.] to the credit of
 
13 the state general fund."
 
14      SECTION 58.  Section 353-31, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§353-31  [Revolving funds for correctional facility stores.
 
17 Subject to the approval of the department of budget and finance,
 
18 a special revolving fund for each correctional facility store may
 
19 be established for the purpose of purchasing items to be resold
 
20 to inmates.]  Disposition of proceeds of correctional facility
 
21 stores.  All moneys received from the resale of allowable items
 
22 in correctional facility stores shall be deposited [in the
 

 
 
 
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 1 revolving fund for each such store.  The proceeds of each fund]
 
 2 into the general fund.  All moneys appropriated by the
 
 3 legislature under this section shall be expended at the
 
 4 discretion of the director, but shall be used only for purchasing
 
 5 items to be resold to inmates and for purchasing of other goods
 
 6 or services for inmate benefits and needs."
 
 7      SECTION 59.  Section 354D-10, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§354D-10  Correctional industries [revolving fund.  [(a)]
 
10 There is created the correctional industries revolving fund to be
 
11 administered by the department.] sale receipts; disposition.  All
 
12 moneys collected by the department from the sale or disposition
 
13 of goods and services produced in accordance with this chapter
 
14 and any inmate deductions shall be deposited into the
 
15 [correctional industries revolving] general fund.  [The proceeds
 
16 in the correctional industries revolving fund shall be used for:]
 
17 All moneys necessary for the purchase or lease of supplies,
 
18 equipment, and machinery; the construction, leasing, or
 
19 renovating of buildings used to carry out the purposes of this
 
20 chapter; the salaries of personnel necessary to administer the
 
21 enterprises established in accordance with this chapter; payment
 
22 of inmates for work assignments; the reimbursement of
 

 
 
 
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 1 incarceration costs of the inmates related to the inmates'
 
 2 participation in correctional industries; and other necessary
 
 3 expenses[; provided that the correctional industries revolving
 
 4 fund shall not be maintained in excess of the amount necessary to
 
 5 carry out the purposes of this chapter.] shall be appropriated by
 
 6 the legislature out of the proceeds of the general fund.
 
 7      [(b)  The director shall perform actuarial evaluations of
 
 8 the management and operation of the fund from time to time, as
 
 9 may be necessary, to ensure that the fund is self-sufficient.]"
 
10      SECTION 60.  Section 383-127, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "[[]§383-127[]  Special unemployment] Unemployment insurance
 
13 administration [fund.] program.  (a)  [There is created in the
 
14 state treasury a special fund to be known as the special
 
15 unemployment insurance administration fund.]  All interest,
 
16 fines, and penalties collected under this chapter on and after
 
17 October 1, 1987, shall be paid into [this] the general fund [and
 
18 shall not be commingled with other state funds but maintained in
 
19 a separate account on the books of the depository.  Interest
 
20 earned upon moneys in the administration fund shall be deposited
 
21 and credited to the administration fund].
 
22      All moneys payable to the [administration fund] program
 

 
 
 
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 1 shall be transferred immediately into the [administration]
 
 2 general fund from the clearing account of the unemployment
 
 3 compensation fund.  The director of finance shall [be the
 
 4 treasurer and custodian of the administration fund and shall
 
 5 administer the fund] shall carry out this section in accordance
 
 6 with directions by the director of labor and industrial
 
 7 relations.  The director of finance shall be liable on the
 
 8 director's official bond for the faithful performance of all
 
 9 duties in connection with [the administration fund.] this
 
10 section.  All sums recovered on such surety bond for losses
 
11 sustained by the [administration fund] program shall be deposited
 
12 into the general fund.
 
13      (b)  Notwithstanding any other provisions of this section to
 
14 the contrary, the moneys [in the administration fund]
 
15 appropriated by the legislature shall be used for the payment of
 
16 the following expenses and obligations relating to the
 
17 administration of the unemployment insurance program:
 
18      (1)  Refunds or adjustments of interest on delinquent
 
19           contributions and penalties or fines erroneously
 
20           collected under this chapter;
 
21      (2)  Expenses for which allocation of federal funds have
 
22           been duly requested but not yet received, subject to
 

 
 
 
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 1           the reimbursement of the expenditures against the funds
 
 2           received;
 
 3      (3)  Expenditures deemed necessary by the director in the
 
 4           administration of this chapter for which no allocations
 
 5           of federal administration funds have been made; and
 
 6      (4)  Interest due under the provisions of section 1202(b) of
 
 7           the Social Security Act, as amended, for advances made
 
 8           to the unemployment compensation fund.
 
 9      (c)  No moneys [in the administration fund] appropriated by
 
10 the legislature shall be expended for any purpose for which
 
11 federal funds would otherwise be available.
 
12      (d)  All expenditures [from the administration fund,] under
 
13 this section, except for refunds of penalties and interest
 
14 erroneously collected, shall be approved by the director.
 
15      [(e)  All moneys deposited or paid into the administration
 
16 fund shall be continuously available to the director for
 
17 expenditures consistent with this section and shall not lapse at
 
18 any time.  The director may transfer moneys deposited in the
 
19 administration fund to the unemployment compensation fund as the
 
20 director deems necessary.
 
21      (f)  Twenty days before the convening of the legislature in
 
22 regular session each year, the director shall submit a report to
 

 
 
 
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 1 the legislature on the financial status of the special
 
 2 unemployment insurance administration fund.]"
 
 3      SECTION 61.  Section 383-128, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§383-128  Employment and training [fund established.(a)
 
 6 Effective January 1, 1992, there is established in the state
 
 7 treasury, apart from all other funds in this State, a special
 
 8 fund to be known as the employment and training fund.] program;
 
 9 disposition of receipts; source of operating funds.  All
 
10 assessments collected pursuant to section 383-129 and all other
 
11 moneys received by the [fund from any other source shall be
 
12 deposited into the employment and training fund.] department
 
13 under this section shall be deposited to the credit of the
 
14 general fund.
 
15      (b)  All moneys to carry out the purposes of this section
 
16 shall be appropriated by the legislature out of the proceeds of
 
17 the general fund.  The moneys [in the employment and training
 
18 fund] may be used for funding:
 
19      (1)  The operation of the state employment service for which
 
20           no federal funds have been allocated;
 
21      (2)  Business-specific training programs to create a more
 
22           diversified job base and to carry out the purposes of
 

 
 
 
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 1           the new industry training program pursuant to section
 
 2           394-8;
 
 3      (3)  Industry or employer-specific training programs where
 
 4           there are critical skill shortages in high growth
 
 5           occupational or industry areas;
 
 6      (4)  Training and retraining programs to assist workers who
 
 7           have become recently unemployed or likely to be
 
 8           unemployed;
 
 9      (5)  Programs to assist residents who do not otherwise
 
10           qualify for federal or state job training programs to
 
11           overcome employment barriers; and
 
12      (6)  Training programs to provide job-specific skills for
 
13           individuals in need of assistance to improve career
 
14           employment prospects.
 
15      (c)  The director may require employers assisted by any of
 
16 these programs to contribute up to fifty per cent of the cost of
 
17 such assistance in cash or in-kind contributions.  All such
 
18 contributions shall be deposited to the general fund.
 
19      (d)  The department is authorized to provide grants and
 
20 subsidies to contract for employment, education, and training
 
21 services from public and private agencies and nonprofit
 
22 corporations.  Grants and subsidies for these services shall be
 

 
 
 
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 1 exempt from chapter 42D so funds for these services may be
 
 2 expended in a timely manner to effectuate the purposes of this
 
 3 section.  All other disbursements shall be in accordance with
 
 4 chapter 103D.
 
 5      (e)  For purposes of grants and subsidies awarded under
 
 6 subsection (d), any organization requesting a grant or subsidy
 
 7 shall:
 
 8      (1)  Be licensed and accredited, as applicable, under the
 
 9           laws of the State;
 
10      (2)  Have at least one year's experience with the project or
 
11           in the program area for which the request or proposal
 
12           is being made; except that the director may grant an
 
13           exception where the project or program area deals with
 
14           new industry training; and
 
15      (3)  Be, employ, or have under contract persons who are
 
16           qualified to engage in the program or activity to be
 
17           funded by the State.
 
18      (f)  Recipients of grants or subsidies shall be subject to
 
19 the following conditions:
 
20      (1)  Any organization requesting a grant or subsidy shall
 
21           submit its request together with all the information
 
22           required by the director on an application form
 

 
 
 
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 1           provided by the department;
 
 2      (2)  The recipient of a grant or subsidy shall not use
 
 3           public funds for purposes of entertainment or
 
 4           perquisites;
 
 5      (3)  The recipient of a grant or subsidy shall comply with
 
 6           applicable federal, state, and county laws;
 
 7      (4)  The recipient of a grant or subsidy shall comply with
 
 8           any other requirements the director may prescribe;
 
 9      (5)  The recipient of a grant or subsidy shall allow the
 
10           director, the legislative bodies, and the legislative
 
11           auditor full access to records, reports, files, and
 
12           other related documents so that the program,
 
13           management, and fiscal practices of the grant recipient
 
14           may be monitored and evaluated to assure the proper and
 
15           effective expenditure of public funds;
 
16      (6)  Every grant or subsidy shall be monitored according to
 
17           rules established by the director to ensure compliance
 
18           with this section; and
 
19      (7)  Any recipient of a grant or subsidy under this section
 
20           who withholds or omits any material fact or
 
21           deliberately misrepresents facts to the director or who
 
22           violates the terms of the recipient's contract shall be
 

 
 
 
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 1           in violation of this section and, in addition to any
 
 2           other penalties provided by law, shall be prohibited
 
 3           from applying for a grant or subsidy under this section
 
 4           for a period of five years from the date of
 
 5           termination.
 
 6      (g)  The director shall submit a report to the legislature
 
 7 on the status of the employment and training [fund, including
 
 8 expenditures and] program [results,] at least twenty days prior
 
 9 to the convening of each regular legislative session.
 
10      (h)  The director of finance shall [act as the treasurer and
 
11 custodian of the employment and training fund, invest those
 
12 moneys in accordance with applicable laws and rules, and]
 
13 disburse the moneys [in the employment and training fund]
 
14 appropriated by the legislature in accordance with directions by
 
15 the director of labor and industrial relations.  [All interest
 
16 earned from investment of moneys in the employment and training
 
17 fund shall be deposited in the fund.]  The director of finance
 
18 shall be liable on the director's official bond for the faithful
 
19 performance of all duties in connection with the [employment and
 
20 training fund.] expenditure of funds appropriated by the
 
21 legislature.  All sums recovered on the surety bond for losses
 
22 sustained by the employment and training [fund] program shall be
 

 
 
 
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 1 deposited in the general fund.
 
 2      (i)  [Administrative costs for the collection of employment
 
 3 and training fund contributions and for costs related to the
 
 4 establishment and maintenance of the employment and training fund
 
 5 shall be borne by the fund beginning with fiscal year 1992-1993
 
 6 and thereafter.
 
 7      (j)]  The director may establish positions and hire
 
 8 necessary personnel to establish and administer the employment
 
 9 and training [fund] program without regard to chapters 76 and
 
10 77."
 
11      SECTION 62.  Section 431:2-214, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§431:2-214  [The commissioner's education and training
 
14 fund.(a)  The commissioner may establish a separate fund
 
15 designated as the commissioner's education and training fund.
 
16      (b)  This fund may be used] Reimbursement of expenses.  (a)
 
17 All moneys to compensate or reimburse staff and personnel of the
 
18 insurance division for education and training[.] shall be
 
19 allocated by the legislature out of the proceeds of the general
 
20 fund.  Upon approval by the commissioner, staff and personnel may
 
21 be compensated or reimbursed for:
 
22      (1)  Actual travel expenses in amounts customary for these
 

 
 
 
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 1           expenses;
 
 2      (2)  A reasonable living expense allowance at a rate
 
 3           customary for these expenses;
 
 4      (3)  Per diem compensation at a customary rate; and
 
 5      (4)  Any fees or charges necessary to attend educational and
 
 6           training conferences, workshops, seminars, and any
 
 7           other event of this nature.
 
 8      [(c)] (b)  Any person receiving reimbursement or
 
 9 compensation [from the commissioner's education and training
 
10 fund] under this section shall submit to the commissioner, for
 
11 approval, a detailed account of all expenses and compensation
 
12 necessarily incurred on account of any education and training for
 
13 the insurance division.
 
14      [(d)] (c)  The [commissioner's education and training] state
 
15 general fund may be used to pay the cost of consumer education
 
16 and information, including publication of information, brochures,
 
17 and consumer guides and costs related to conferences, workshops,
 
18 seminars, and any other event of this nature which the
 
19 commissioner sponsors or in which the commissioner or insurance
 
20 division staff participates. "
 
21      SECTION 63.  Section 431:2-307, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "§431:2-307  [Insurance examiners revolving fund and
 
 2 appointment of examiners.(a)  The commissioner may establish a
 
 3 separate fund designated as the insurance examiners revolving
 
 4 fund.
 
 5      (b)  The commissioner may appoint staff examiners, not
 
 6 subject to chapters 76 and 77, and contract with independent
 
 7 contractor examiners, who shall examine the affairs,
 
 8 transactions, accounts, records, documents, and assets of each
 
 9 authorized insurer, general agent, subagent, solicitor, adjuster,
 
10 and agency.  The commissioner may also appoint administrative
 
11 support personnel, not subject to chapters 76 and 77, who shall
 
12 assist and support the examiners.  The commissioner may pay the
 
13 salaries of the staff examiners and administrative support
 
14 personnel from the insurance examiners revolving fund.
 
15      (c)  The funds shall be used to compensate or reimburse
 
16 independent contractor examiners for:
 
17      (1)  Actual travel expenses in amounts customary for such
 
18           expenses and approved by the commissioner;
 
19      (2)  A reasonable living expense at a rate of per diem
 
20           customary for such expenses and approved by the
 
21           commissioner; and
 
22      (3)  Compensation at a rate customary for such compensation
 

 
 
 
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 1           as approved by the commissioner.
 
 2      (d)  The funds may also be used to reimburse insurance
 
 3 division staff examiners and administrative support personnel for
 
 4 the following expenses necessarily incurred on account of an
 
 5 examination and the examiners' education and training:
 
 6      (1)  Actual travel expenses in amounts customary for such
 
 7           expenses and approved by the commissioner;
 
 8      (2)  A reasonable living expense allowance at a rate
 
 9           customary for such expenses and approved by the
 
10           commissioner; and
 
11      (3)  Any fee or tuition necessary to attend educational and
 
12           training conferences, workshops, seminars, and any
 
13           similar events of this nature.
 
14      (e)  The funds may also be used for other expenses relating
 
15 to examinations of insurance companies.
 
16      (f)  All persons receiving any reimbursement or compensation
 
17 from the insurance examiners revolving fund shall submit to the
 
18 commissioner for approval a detailed account of all expenses and
 
19 compensation necessarily incurred.  Persons shall not receive or
 
20 accept any additional emolument on account of an examination.  In
 
21 the case of an examination, any reimbursement or compensation
 
22 made by the fund and approved by the commissioner shall be
 

 
 
 
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 1 charged to the person being examined by the commissioner and all
 
 2 receipts shall be credited to the fund.
 
 3      (g)  Moneys in the insurance examiners revolving fund shall
 
 4 not revert to the general fund.
 
 5      (h)  Each authorized insurer shall pay, on or before
 
 6 August 15, 1993, and each year thereafter, on or before July 1, a
 
 7 sum of $550 to the commissioner to be credited to the insurance
 
 8 examiners revolving fund.
 
 9      (i)  The commissioner shall prepare and submit a quarterly
 
10 report to the legislature on the use of the insurance examiners
 
11 revolving fund.  The report shall describe expenditures made from
 
12 the fund including non-payroll operating expenses.] Reimbursement
 
13 and compensation of examiners; source of funds; disposition of
 
14 receipts.  (a)  All moneys necessary for the compensation and
 
15 reimbursement of independent contractor examiners and insurance
 
16 division staff examiners for actual travel expenses, reasonable
 
17 living expenses, and per diem expenses, at customary rates
 
18 approved by the commissioner shall be allocated by the
 
19 legislature through appropriations out of the state general fund.
 
20 The department shall include in its budgetary request for each
 
21 upcoming fiscal period, the amounts necessary to effectuate the
 
22 purposes of this section.
 

 
 
 
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 1      (b)  Each authorized insurer shall deposit at a time
 
 2 determined by the commissioner the sum of $200 with the
 
 3 commissioner for deposit into the state general fund.
 
 4      (c)  All moneys, fees, and other payments received by the
 
 5 commissioner under this part shall be deposited to the credit of
 
 6 the state general fund."
 
 7      SECTION 64.  Section 431:10C-115, Hawaii Revised Statutes,
 
 8 is amended by amending subsections (b) and (c) to read as
 
 9 follows:
 
10      "(b)  The commissioner shall deposit the fees into [a
 
11 special drivers education] general fund [account].
 
12      (c)  The commissioner shall allocate the fees [deposited]
 
13 appropriated by the legislature under this section for each
 
14 fiscal year in the following manner:
 
15      (1)  Fifty per cent to the commissioner to be expended for
 
16           the operation of the drivers education program provided
 
17           in section 286-128(m); and
 
18      (2)  Fifty per cent to the director of commerce and consumer
 
19           affairs for:
 
20           (A)  The drivers education program administered by the
 
21                department of education for high school students;
 
22                and
 

 
 
 
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 1           (B)  The traffic safety education program established
 
 2                and administered by the department of education
 
 3                pursuant to section 302A-417."
 
 4      SECTION 65.  Section 514A-131, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "[[]§514A-131[]]  Condominium management education [fund.]
 
 7 program.  (a)  The real estate commission shall establish a
 
 8 condominium management education [fund that the commission may
 
 9 use] program for educational purposes.  Except as provided in
 
10 section 514A-132, all moneys to carry out the purposes of this
 
11 section shall be allocated by the legislature out of
 
12 appropriations from the general fund.  Educational purposes shall
 
13 include financing or promoting:
 
14      (1)  Education and research in the field of condominium
 
15           management, condominium registration, and real estate
 
16           for the benefit of the public and those required to be
 
17           registered under this chapter;
 
18      (2)  The improvement and more efficient administration of
 
19           condominium associations; and
 
20      (3)  Expeditious and inexpensive procedures for resolving
 
21           condominium association disputes.
 
22      (b)  The commission may use any and all moneys [in the
 

 
 
 
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 1 condominium management education fund] appropriated by the
 
 2 legislature for purposes consistent with subsection (a)."
 
 3      SECTION 66.  Section 514A-132, Hawaii Revised Statutes, is
 
 4 amended:
 
 5      1.  By amending its title to read as follows:
 
 6      "§514A-132  Payments [to the fund]."
 
 7      2.  By amending subsection (b) to read as follows:
 
 8      "(b)  The department of commerce and consumer affairs shall
 
 9 [allocate the] deposit all fees collected to the [condominium
 
10 management education fund established pursuant to section
 
11 514A-131.] the credit of the state general fund."
 
12      SECTION 67.  Section 514A-133, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§514A-133  Management of [fund.] sums received.  (a)  The
 
15 sums received by the commission for [deposit in] the condominium
 
16 management education [fund] program shall be [held by the
 
17 commission within in trust for carrying out the purpose of the
 
18 fund.] deposited to the credit of the general fund. 
 
19      (b)  The commission and the director of commerce and
 
20 consumer affairs may use moneys [in the condominium management
 
21 education fund] allocated by the legislature to employ necessary
 
22 personnel not subject to chapters 76 and 77 for additional staff
 

 
 
 
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 1 support, to provide office space, and to purchase equipment,
 
 2 furniture, and supplies required by the commission to carry out
 
 3 its responsibilities under this part.
 
 4      (c)  The moneys [in the condominium management education
 
 5 fund] allocated by the legislature may be invested and reinvested
 
 6 together with the real estate education fund established under
 
 7 section 467-19 in the same manner as are the funds of the
 
 8 employees retirement system of the State.  The interest from
 
 9 these investments shall be deposited to the credit of the
 
10 [condominium management education fund.] general fund.
 
11      (d)  The commission shall annually submit to the
 
12 legislature, prior to the convening of each regular session:
 
13      (1)  A summary of the programs funded during the prior
 
14           fiscal year and the amount of [money in the fund,]
 
15           moneys expended, and
 
16      (2)  A copy of the budget for the current fiscal year,
 
17           including summary information on programs which were
 
18           funded or are to be funded."
 
19      SECTION 68.  Section 601-3.5, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§601-3.5  Supreme court law library [revolving fund.  There
 
22 is established a revolving fund for the statewide supreme court
 

 
 
 
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 1 law library system into which shall be deposited all];
 
 2 disposition of fines and other revenues.  All fines, fees, and
 
 3 other revenue derived from the supreme court library system's
 
 4 operations[.  Moneys deposited in this fund may be expended]
 
 5 shall be deposited to the credit of the general fund.  All moneys
 
 6 to replace or repair lost, damaged, stolen, unreturned, or
 
 7 outdated books, serials, periodicals, and other library
 
 8 materials, or to support and improve library services[.] shall be
 
 9 appropriated by the legislature out of the proceeds of the
 
10 general fund."
 
11      SECTION 69.  Section 712A-16, Hawaii Revised Statutes, is
 
12 amended:
 
13      1.  By amending subsection (2) to read as follows:
 
14      "(2)  All forfeited property and the sale proceeds thereof,
 
15 up to a maximum of three million dollars per year, not previously
 
16 transferred pursuant to [[]subsection[]] (1)(a) [of this
 
17 section], [shall,] after payment of expenses of administration
 
18 and sale, shall be distributed as follows:
 
19      (a)  One quarter shall be distributed to the unit or units
 
20           of state or local government [[]whose[]] officers or
 
21           employees conducted the investigation and caused the
 
22           arrest of the person whose property was forfeited or
 

 
 
 
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 1           seizure of the property for forfeiture;
 
 2      (b)  One quarter shall be distributed to the prosecuting
 
 3           attorney who instituted the action producing the
 
 4           forfeiture; and
 
 5      (c)  One half shall be deposited into the [criminal
 
 6           forfeiture fund established by this chapter.] general
 
 7           fund."
 
 8      2.  By amending subsection (4) to read as follows:
 
 9      "(4)  [There is established in the department of the
 
10 attorney general a revolving fund to be known as the criminal
 
11 forfeiture fund, hereinafter referred to as the "fund" in which
 
12 shall be deposited one-half of the proceeds of a forfeiture and
 
13 any penalties paid pursuant to section 712A-10(6).]  All moneys
 
14 [in the fund shall be expended by the attorney general and are
 
15 hereby appropriated] for the following purposes[:] shall be
 
16 appropriated by the legislature out of the proceeds of the
 
17 general fund:
 
18      (a)  The payment of any expenses necessary to seize, detain,
 
19           appraise, inventory, safeguard, maintain, advertise, or
 
20           sell property seized, detained, or forfeited pursuant
 
21           to this chapter or of any other necessary expenses
 
22           incident to the seizure, detention, or forfeiture of
 

 
 
 
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 1           such property and such contract services and payments
 
 2           to reimburse any federal, state, or county agency for
 
 3           any expenditures made to perform the foregoing
 
 4           functions;
 
 5      (b)  The payment of awards for information or assistance
 
 6           leading to a civil or criminal proceeding;
 
 7      (c)  The payment of supplemental sums to state and county
 
 8           agencies for law enforcement purposes; and
 
 9      (d)  The payment of expenses arising in connection with
 
10           programs for training and education of law enforcement
 
11           officers."
 
12      3.  By amending subsection (5) to read as follows:
 
13      "(5)  The attorney general may, without regard to the
 
14 requirements of chapter 91, [promulgate] adopt rules [and
 
15 regulations] concerning the disposition of property, [the use of
 
16 the fund,] and compromising and paying valid claims against
 
17 property forfeited pursuant to this chapter."
 
18      4.  By amending subsection (6) to read as follows:
 
19      "(6)  Not less than twenty days prior to the convening of
 
20 each regular session, the attorney general shall provide to the
 
21 legislature a report on the use of the Hawaii omnibus criminal
 
22 forfeiture act during the fiscal year preceding the legislative
 

 
 
 
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 1 session.  The report shall include:
 
 2      (a)  The total amount and type of property seized by law
 
 3           enforcement agencies;
 
 4      (b)  The total number of administrative and judicial actions
 
 5           filed by prosecuting attorneys and the disposition
 
 6           thereof;
 
 7      (c)  The total number of claims or petitions for remission
 
 8           or mitigation filed in administrative actions and the
 
 9           dispositions thereof;
 
10      (d)  The total amount and type of property forfeited and the
 
11           sale proceeds thereof;
 
12      (e)  The total amount and type of property distributed to
 
13           units of state and local government;
 
14      (f)  The amount of money deposited into the [criminal
 
15           forfeiture] general fund; and
 
16      (g)  The amount of money expended by the attorney general
 
17           [from the criminal forfeiture fund] under subsection
 
18           (5) and the reason for the expenditures."
 
19      SECTION 70.  Section 36-32, Hawaii Revised Statutes, is
 
20 repealed.
 
21      ["§36-32  State educational facilities improvement special
 
22 fund.(a)  There is created in the treasury of the State the
 

 
 
 
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 1 state educational facilities improvement special fund, into which
 
 2 shall be deposited a portion of all general excise tax revenues
 
 3 collected by the department of taxation under section 237-31.
 
 4 The special fund shall be used solely to plan, design, acquire
 
 5 lands for and to construct public school facilities and to
 
 6 provide equipment and technology infrastructure to improve public
 
 7 schools and other facilities under the jurisdiction of the
 
 8 department of education, except public libraries.  In addition,
 
 9 activities of the department of education intended to eliminate
 
10 the gap between the facility needs of schools and available
 
11 resources shall be eligible for funding from the special fund.
 
12 Expenditures from the special fund shall be limited to projects
 
13 authorized by the legislature and shall be subject to sections
 
14 37-31, and 37-33 through 37-40.  Appropriations or authorizations
 
15 from the special fund shall be expended by the comptroller.
 
16      (b)  The department of accounting and general services shall
 
17 submit an annual report to the legislature, which shall include a
 
18 financial statement of the special fund and the status of
 
19 projects undertaken pursuant to this section, no later than
 
20 twenty days prior to the convening of each regular session."]
 
21      SECTION 71.  Section 41D-5, Hawaii Revised Statutes, is
 
22 repealed.
 

 
 
 
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 1      ["[§41D-5]  Investment of fund.  The director of finance
 
 2 shall invest all moneys appropriated or assessed to the state
 
 3 risk management revolving fund.  Interest upon the investments
 
 4 shall be credited to the state risk management revolving fund."]
 
 5      SECTION 72.  Section 41D-6, Hawaii Revised Statutes, is
 
 6 repealed.
 
 7      ["[§41D-6]  Fund advancement; dissolution.  If the state
 
 8 risk management revolving fund should become financially
 
 9 incapable of meeting its obligations under this chapter, the
 
10 comptroller, in the comptroller's discretion, may:
 
11      (1)  Request that the governor authorize the transfer of
 
12           sufficient sums to meet the fund's obligations from
 
13           whatever such savings as may be available from other
 
14           current appropriation for any other state program.
 
15           Money so advanced shall be repaid from the state risk
 
16           management revolving fund in annual installments,
 
17           without interest.  The amount of installments shall be
 
18           fixed by the director of finance at whatever amount as
 
19           can reasonably be expected to liquidate indebtedness of
 
20           the fund in not more than ten years; or
 
21      (2)  Dissolve the fund, prorating remaining assets of the
 
22           fund among the claimants, giving priority to those
 

 
 
 
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 1           claims as, in the comptroller's discretion, is
 
 2           appropriate."]
 
 3      SECTION 73.  Section 167-22, Hawaii Revised Statutes, is
 
 4 repealed.
 
 5      ["§167-22  Irrigation system revolving fund.(a)  There is
 
 6 established the irrigation system revolving fund, into which
 
 7 shall be deposited:
 
 8      (1)  All legislative appropriations to the irrigation system
 
 9           revolving fund; and
 
10      (2)  All or any portion of the receipts and revenues
 
11           collected under this chapter, as determined by the
 
12           board of agriculture, exclusive of the receipts and
 
13           revenues deposited into the irrigation water
 
14           development special fund.
 
15      (b)  The irrigation system revolving fund shall be
 
16 administered by the department of agriculture.  Moneys in the
 
17 revolving fund shall be expended for:
 
18      (1)  Administrative costs, engineering surveys, economic
 
19           studies, plans, and maps; and
 
20      (2)  Other water projects or purposes of the board of
 
21           agriculture.  
 
22      In the event any moneys are expended from the revolving fund
 

 
 
 
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 1 for engineering surveys, economic studies, plans, and other
 
 2 expenses directly attributable to any water project, or for the
 
 3 establishment of any water project, the amount of the
 
 4 expenditures shall be reimbursed to the revolving fund from any
 
 5 funds received by the board for and on account of the project."]
 
 6      SECTION 74.  Section 201E-73, Hawaii Revised Statutes, is
 
 7 repealed.
 
 8      ["[§201E-73]  Revenue bonds; special funds.(a)  A separate
 
 9 special fund shall be established for each housing loan program
 
10 or part thereof financed from the proceeds of the revenue bonds
 
11 secured under the same trust indenture.  Each fund shall be
 
12 designated "housing loan program revenue bond special fund" and
 
13 shall bear additional designation as the corporation deems
 
14 appropriate to properly identify the fund.
 
15      (b)  Notwithstanding any other law to the contrary,
 
16 including particularly section 201E-204, all revenues, income,
 
17 and receipts derived from the benefits of the housing loan
 
18 program for which the revenue bonds are issued shall be paid into
 
19 the housing loan program revenue bond special fund established
 
20 for that program and applied as provided in the proceedings
 
21 authorizing the issuance of the revenue bonds."]
 
22      SECTION 75.  If any provision of this Act, or the
 

 
 
 
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 1 application thereof to any person or circumstance is held
 
 2 invalid, the invalidity does not affect other provisions or
 
 3 applications of the Act which can be given effect without the
 
 4 invalid provision or application, and to this end the provisions
 
 5 of this Act are severable.
 
 6                              PART II
 
 7      SECTION 76.  Section 237-31, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§237-31  Remittances.  All remittances of taxes imposed by
 
10 this chapter shall be made by money, bank draft, check, cashier's
 
11 check, money order, or certificate of deposit to the office of
 
12 the department of taxation to which the return was transmitted.
 
13 The department shall issue its receipts therefor to the taxpayer
 
14 and shall pay the moneys into the state treasury as a state
 
15 realization, to be kept and accounted for as provided by law;
 
16 provided that [the sum from all general excise tax revenues
 
17 realized by the State that represents the difference between
 
18 $90,000,000 and the proceeds from the sale of any general
 
19 obligation bonds authorized for that fiscal year for the purposes
 
20 of the state educational facilities improvement special fund
 
21 shall be deposited in the state treasury in each fiscal year to
 
22 the credit of the state educational facilities improvement
 

 
 
 
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 1 special fund; provided further that a]:
 
 2      (1)  A sum, not to exceed $5,000,000, from all general
 
 3           excise tax revenues realized by the State shall be
 
 4           deposited in the state treasury in each fiscal year to
 
 5           the credit of the compound interest bond reserve
 
 6           fund[.]; and
 
 7      (2)  All taxes derived from the sale of liquid fuel under
 
 8           section 237-16, sold or used for operating motor
 
 9           vehicles upon the public highways of the State, shall
 
10           be deposited into the state treasury to the credit of
 
11           the state highway fund."
 
12                             PART III
 
13      SECTION 77.  Of the amount appropriated to the general fund
 
14 in Act 218, Session Laws of Hawaii 1995, as amended by Act 287,
 
15 Session Laws of Hawaii 1996, the amount of $51,444,996, which was
 
16 reflected as a personnel cost restriction by the Executive Branch
 
17 in fiscal year 1996-97, shall be lapsed back into the general
 
18 fund.
 
19      SECTION 78.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 79.  This Act shall take effect on July 1, 2010;
 
22 provided that the administrator of each special or revolving fund
 

 
 
 
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 1 scheduled for repeal in this Act shall transfer to the credit of
 
 2 the state general fund, all unencumbered and unexpended balances
 
 3 remaining in the fund before June 30, 2010.