HB 1707

Report Title:

Special funds; demonstration of need

Description:

Requires the auditor to find a demonstration of need as an additional criterion in analyzing proposals for new special or revolving funds.

HOUSE OF REPRESENTATIVES	H.B. NO.	1707
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO THE DEMONSTRATION OF NEED BEFORE ESTABLISHING NEW SPECIAL OR REVOLVING FUNDS.

 

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

SECTION 1. Section 23-11, Hawaii Revised Statutes, is amended to read as follows:

"[§23-11] New special or revolving funds. Within five days after the deadline for the introduction of bills in each legislative session, the clerks of each house of the legislature shall transmit, to the legislative auditor for analysis, copies of all legislative bills that were introduced in their respective houses during that session that propose to establish new special or revolving funds.

The criteria to be used by the auditor in analyzing each legislative bill shall include, but not be limited to, the extent to which [the fund]:

(1) The fund serves [Serves] the purpose for which it is being created; [and]

(2) The fund reflects [Reflects] a clear link between the benefit sought and changes made upon the users or beneficiaries of the program, as opposed to serving primarily as a means to provide the program or users with an automatic means of support which is removed from the normal budget and appropriations process; and[.]

(3) the proposal to establish a new special or revolving fund be supported by evidence of need.

Each analysis shall set forth the probable effects of the proposed fund and shall also assess alternative forms of funding.

No later than thirty days prior to the adjournment sine die of each legislative session, the legislative auditor shall submit the analysis of each transmitted legislative bill to each house of the legislature. If the analysis shows a proposal to establish a new special or revolving fund does not meet all three criteria used by the legislative auditor in analyzing such proposals, such measure shall require a two-thirds majority vote of each house of the legislature for passage."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2002.

 

 

INTRODUCED BY:	_____________________________