SB582 SD1

THE SENATE	S.B. NO.	582
THIRTY-SECOND LEGISLATURE, 2023		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO STATE BUDGET.

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

Section 1. This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Hawaii State Constitution.

SECTION 2. 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, displaced thousands on the island of Maui, and destroyed nearly all of Lahaina.

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 $164,100,000, after adjustments, from selected general fund operating appropriations from Act 164, Session Laws of Hawaii 2023 (Act 164), 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 $164,100,000 to the major disaster fund along with another $30,000,000 that the governor authorized pursuant to section 5 of Act 164. 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 (FEMA). These steps provided what was thought to be sufficient funding for the State to address the expected fiscal year 2023-2024 response and recovery expenses as of the beginning of January 2024.

The legislature further finds that FEMA executed the contract for debris clean-up costs, and the State executed the contracts for noncongregate housing and related expenses for room and board of wildfire victims displaced from their homes. The State's expenses for noncongregate housing and other expenses, including expenses for individuals impacted by the wildfires who have been classified as not eligible for FEMA assistance, is expected to exceed the amounts previously transferred to the major disaster fund. Because the State executed these contracts, the State is responsible for making payment and will seek reimbursement from FEMA for eligible costs. Issues have recently arisen over what costs are eligible and the timeline in which the State will be reimbursed for eligible costs is currently not clear. The State will require additional funds to cover these immediate expenses in fiscal year 2024-2025.

Accordingly, the purpose of this Act is to make an emergency appropriation to cover the State's immediate expenses incurred in the Hawaii wildfires disaster response efforts.

SECTION 3. 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 general fund expenditure ceiling for fiscal year 2023-2024 has already been exceeded by $1,005,342,735 or 9.4 per cent. The appropriations contained in this Act will cause the State general fund expenditure ceiling for fiscal year 2023-2024 to be further exceeded by $ or per cent. This declaration takes into account the additional general fund appropriations authorized for fiscal year 2023-2024 in this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

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

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 for expenses related to noncongregate housing and other costs relating to the provision of food, housing, or other assistance for individuals affected by the Hawaii wildfires disaster that began on August 8, 2023; provided that all moneys that are unencumbered as of June 30, 2026, shall lapse as of that date; provided further that any law to the contrary notwithstanding, the governor may authorize the transfer of these funds to the major disaster fund established by section 127A-16, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of budget and finance, departmental administration and budget division (BUF101) for the purposes of this Act.

SECTION 5. This Act shall take effect upon its approval.