SB3068 HD1

SECTION 1. The legislature finds that the devastating wildfires brought on by winds from Hurricane Dora on August 8, 2023, resulted in one of the worst natural disasters in the State's history. The wildfires caused loss of life and displacement of thousands on the island of Maui. The disaster also destroyed nearly all of Lahaina.

The legislature further finds that the constitutional responsibility and power to appropriate rests solely with the legislature. Chapter 127A, Hawaii Revised Statutes, was enacted to provide the administration with sufficient ability, during disasters or emergencies of unprecedented size and destructiveness, to ensure the safety of the public and recovery of the State.

The legislature further finds that transparency, communication, coordination, and collaboration between all branches of government is necessary to develop and implement solutions for survivors. In total, more than $1,000,000,000, or ten per cent, of the general fund budget may be necessary to respond to this disaster.

The legislature further finds that to support response and recovery efforts and address immediate 2023 wildfire funding needs, the governor, through the seventh emergency proclamation relating to wildfires, dated September 8, 2023, and executive memorandum no. 23-08, redirected $172,800,000 from selected general fund operating appropriations from Act 164, Session Laws of Hawaii 2023, originally intended for specific purposes and capital improvement projects, to the department of budget and finance. The department of budget and finance subsequently transferred the $172,800,000 to the major disaster fund and other purposes, along with another $30,000,000 that the governor authorized pursuant to section 5 of Act 164, Session Laws of Hawaii 2023. With the existing $5,000,000 major disaster fund appropriation, a total of $199,100,000 has been allocated to the major disaster fund for initial wildfire response and recovery, including the expected State's share of noncongregate housing and debris clean-up costs initially being paid by the Federal Emergency Management Agency.

The legislature further finds that the federal government has allocated $2,000,000,000 to address recovery efforts in Hawaii. This allocation requires Federal Emergency Management Agency approval before it can be spent.

The legislature notes that this Act is a vital component to funding wildfire recovery. Just as critical is longer term, permanent, comprehensive base budget funding for programs and initiatives that will better prepare the State for future disasters in terms of prevention and planning, which can be found in the Supplemental Appropriations Act of 2024 for fiscal year 2024-2025. The supplemental executive budget appropriates $69,538,898 that includes:

(1) $364,000 for 3.0 positions in the department of business, economic development, and tourism;

(2) $125,000 for temporary libraries in Makawao and Lahaina;

(3) $12,751,554 for emergency management purposes in the department of human services;

(4) $424,344 for 6.0 positions in the Hawaii emergency management agency;

(5) $1,900,000 for consultant contracts for utility dockets at the public utilities commission;

(6) $20,974,000 for wildfire response, rehabilitation, fuel reduction, and fire and emergency response equipment at the department of land and natural resources; and

(7) $33,000,000 for the repair and rehabilitation of highways in Lahaina.

The legislature further finds that uncertainty with the status of Federal Emergency Management Agency eligible and ineligible expenses remain, making accurate appropriations an extreme challenge.

The purpose of this Act is to make appropriations to cover the State's expenses incurred in the Hawaii wildfires disaster response efforts, ensuring that critical state programs retain funding appropriated by the legislature that is necessary for their continued operation, and to continue the Hawaii wildfires disaster response and recovery efforts by allocating $459,720,000 as follows:

(1) Appropriating $200,000,000 to ensure that insurance proceeds are allocated as needed;

(2) Appropriating $186,160,000 relating to the State's response to the Maui wildfires and statewide wildfire mitigation and response;

(3) Appropriating $10,000,000 to the department of land and natural resources for fire and emergency response equipment; and

(4) Authorizing $63,560,000 of reimbursable general obligation funded capital improvement projects.

SECTION 2. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $200,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 for disbursement of insurance claim payments related to the Hawaii wildfires disaster that began on August 8, 2023; provided that the department of accounting and general services shall submit the following information associated with the Hawaii wildfires disaster that began on August 8, 2023, to the legislature on the seventh day of each month:

(1) The date of insurance proceeds allocation;

(2) The amount of proceeds allocated;

(3) The date of any expenditures;

(4) The amount of expenditures made;

(5) The purpose of expenditures;

(6) Any contracts executed for the expenditure of funds;

(7) The liquidation date for all contracts or liabilities; and

(8) A detailed explanation of the public purposes served by the expenditure of resources.

Notwithstanding any law to the contrary, the governor shall submit to the legislature a summary report containing the aforementioned information for the previous twelve-month period from December 1 to November 30 no later than thirty days prior to the convening of the regular session of 2025.

The sum appropriated shall be expended by the department of accounting and general services, state risk management and insurance administration (AGS 203), for the purposes of this Act, with the approval of the comptroller.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $186,160,000 or so much thereof as may be necessary for fiscal year 2024-2025 as a set-aside for recovery costs for the Hawaii wildfires disaster that began on August 8, 2023; provided that notwithstanding any law to the contrary, the governor may authorize the transfer of up to $186,160,000 in general funds to other state agencies for recovery costs for the Hawaii wildfires disaster that began on August 8, 2023; provided further that the governor shall provide notice to the legislature fourteen days prior to the date of any transfer and submit a report to the legislature within five days of each use of this authority; provided further that the report shall include the date of transfer, the amount of the transfer, the program ID to which funds were transferred, and an explanation of the purpose of the transfer of resources.

Notwithstanding any law to the contrary, the governor shall submit to the legislature a summary report containing the aforementioned information for each use of this authority for the previous twelve-month period from December 1 to November 30 no later than thirty days prior to the convening of the regular sessions of 2025 and 2026.

The sum appropriated shall be expended by the department of budget and finance, departmental administration and budget division (BUF 101), for the purposes of this Act.

SECTION 4. Notwithstanding any law to the contrary, the department of budget and finance or any department or agency receiving funds transferred by the governor shall submit the following information associated with the Hawaii wildfires disaster that began on August 8, 2023, to the legislature on the seventh day of each month:

(1) The date of expenditures;

(2) The amount of expenditures made, separately for Federal Emergency Management Agency eligible and Federal Emergency Management Agency ineligible expenses;

(3) The purpose of expenditures;

(4) Any contracts executed for the expenditure of funds;

(5) The liquidation date for all contracts or liabilities; and

(6) A detailed explanation of the public purposes served by the expenditure of resources.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 for fire and emergency response equipment.

The sum appropriated shall be expended by the department of land and natural resources, native resources and fire protection program (LNR 402), for the purposes of this Act.

SECTION 6. The director of finance is authorized to issue reimbursable general obligation bonds in the sum of $63,560,000 and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2024-2025 as follows:

(1) $4,560,000 for a final disposition site;

(2) $11,000,000 for wastewater collection system repairs;

(3) $9,000,000 for wastewater collection system laterals and cleanouts;

(4) $3,000,000 for traffic signal replacement;

(5) $10,000,000 for fire flow improvements to water systems;

(6) $10,000,000 for water supply infrastructure repairs and replacements;

(7) $8,000,000 for storm drainage, flood control, and water quality improvements; and

(8) $8,000,000 for roadway connectivity for disaster evacuation.

The sum appropriated shall be expended by the county of Maui through (SUB 401) for the purposes of this Act; provided that the county of Maui shall reimburse the State for all interest payments made on the debt service of the reimbursable general obligation bonds; provided further that any reimbursements received by the State from the Federal Emergency Management Agency shall be credited towards any principal payments made by the state treasury for the reimbursable general obligation bonds issued.

SECTION 7. The appropriations made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriations are made; provided that all moneys from the appropriations unencumbered as of June 30, 2026, shall lapse as of that date.

SECTION 8. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriations contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

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

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

SECTION 9. This Act shall take effect on July 1, 3000.

THE SENATE	S.B. NO.	3068
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII		H.D. 1