HB1800

SECTION 1. This Act shall be known and may be cited as the Supplemental Appropriations Act of 2026.

SECTION 2. This Act amends Act 250, Session Laws of Hawaii 2025, and other appropriations and authorizations effective during fiscal biennium 2025‑2027 pursuant to article VII, section 9, of the State Constitution, which provides that the governor may submit to the legislature a bill to amend any appropriation for operating expenditures of the current fiscal biennium and bills to amend any appropriations for capital expenditures of the current fiscal biennium. As provided by section 37‑72, supplemental budget, Hawaii Revised Statutes, the supplemental budget reflects the changes being proposed in the State's program and financial plan and has been prepared in the manner provided in section 37‑71, the budget, Hawaii Revised Statutes.

Section 37-71(b)(4), Hawaii Revised Statutes, prescribes that the information provided in the budget be formatted such that program costs include all costs, including research and development, operating and capital, regardless of the means of financing. Section 37‑71(c)(3), Hawaii Revised Statutes, requires a summary listing of all capital improvement projects by program, at the lowest level of the program structure, which shows for each project, by investment cost elements, the amount of new appropriations and authorizations proposed. Under section 37‑62, definitions, Hawaii Revised Statutes, "cost elements" means the major subdivisions of a cost category. The category "capital investment" includes plans, land acquisition, design, construction, and equipment and furnishing.

SECTION 3. Part I of Act 250, Session Laws of Hawaii 2025, is amended by amending section 2 to read as follows:

"SECTION 2. DEFINITIONS. Unless otherwise clear from the context, as used in this Act:

"Capital project number" means the official number of the capital project, as assigned by the responsible organization.

"Expending agency" means the executive department, independent commission, bureau, office, board, or other establishment of the state government (other than the legislature, Office of Hawaiian Affairs, and judiciary), the political subdivisions of the State, or any quasi‑public institution supported in whole or in part by state funds, which is authorized to expend specified appropriations made by this Act.

Abbreviations, where used to denote the expending agency, shall mean the following:

AGR Department of Agriculture and Biosecurity

AGS Department of Accounting and General Services

ATG Department of the Attorney General

BED Department of Business, Economic Development and

Tourism

BUF Department of Budget and Finance

CCA Department of Commerce and Consumer Affairs

DEF Department of Defense

EDN Department of Education

GOV Office of the Governor

HHL Department of Hawaiian Home Lands

HMS Department of Human Services

HRD Department of Human Resources Development

HTH Department of Health

LAW Department of Law Enforcement

LBR Department of Labor and Industrial Relations

LNR Department of Land and Natural Resources

LTG Office of the Lieutenant Governor

PSD Department of Corrections and Rehabilitation

SUB Subsidies

TAX Department of Taxation

TRN Department of Transportation

UOH University of Hawaii

CCH City and County of Honolulu

COH County of Hawaii

COK County of Kauai

COM County of Maui

"Means of financing" or "MOF" means the source from which funds are appropriated or authorized to be expended for the programs and projects specified in this Act. All appropriations are followed by letter symbols. Such letter symbols, where used, shall have the following meanings:

A general funds

B special funds

C general obligation bond fund

D general obligation bond fund with debt service cost to

be paid from special funds

E revenue bond funds

J federal aid interstate funds

K federal aid primary funds

L federal aid secondary funds

M federal aid urban funds

N federal funds

P other federal funds

R private contributions

S county funds

T trust funds

U interdepartmental transfers

W revolving funds

X other funds

"Position ceiling" means the maximum number of permanent and temporary full‑time equivalent positions that an expending agency is authorized for a particular program during a specified period or periods, as denoted by a single asterisk for permanent full‑time equivalent positions and [~~a pound sign~~] double asterisks for temporary full‑time equivalent positions.

"Program ID" means the unique identifier for the specific program and consists of the abbreviation for the organization responsible for carrying out the program, followed by the organization number for the program."

SECTION 4. Part II of Act 250, Session Laws of Hawaii 2025, is amended by amending section 3 to read as follows:

"SECTION 3. APPROPRIATIONS. The following sums, or so much thereof as may be sufficient to accomplish the purposes and programs designated herein, are hereby appropriated or authorized, as the case may be, from the means of financing specified to the expending agencies designated for the fiscal biennium beginning July 1, 2025, and ending June 30, 2027. The total expenditures and the number of positions in each fiscal year of the biennium shall not exceed the sums and the position ceiling indicated for each fiscal year, except as provided elsewhere in this Act, or as provided by general law.

SECTION 5. Part III of Act 250, Session Laws of Hawaii 2025, is amended:

(1) By adding a new section to read as follows:

"SECTION XX. Provided that the general fund appropriations for Maui Health System, a KFH LLC (HTH214), for fiscal biennium 2025-2027 shall be disbursed by the Hawaii health systems corporation to the Maui Health System, a Kaiser Foundation Hospitals LLC, for its operating subsidies in the respective fiscal years; provided further that the Maui Health System has satisfied all of the standards and conditions of section 323F‑58, Hawaii Revised Statutes."

(2) By adding a new section to read as follows:

"SECTION XX. Provided that out of the general fund appropriation for charter schools (EDN600), the charter schools commission shall determine the sum necessary for fiscal year 2026-2027 for teacher differentials for hard‑to-staff and Hawaiian immersion teachers and disburse it to the impacted schools; provided further that any funds not expended or encumbered for this purpose shall be distributed to the charter schools (EDN600) on a per pupil basis."

(3) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for the Hawaii emergency management agency (DEF118), the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 shall be expended for relief from major disasters pursuant to section 127A-16, Hawaii Revised Statutes; provided further that any funds not expended for this purpose shall lapse to the general fund."

(4) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for the office of the public defender (BUF151), the sum of $165,404 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 shall be transferred to the office of the prosecuting attorney of the city and county of Honolulu for the operation of the community outreach court project."

(5) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for the office of the governor (GOV100), the sum of $10,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the sum of $10,000 or so much thereof as may be necessary for fiscal year 2026-2027 shall be used for the governor's "contingent fund" pursuant to section 37-71(f), Hawaii Revised Statutes; and provided further that such funds may be transferred to other programs and agencies and allotted, with the approval of the governor, to meet contingencies as they arise."

(6) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for collective bargaining - statewide (BUF102), the sum of $1,820,168 or so much thereof as may be necessary for fiscal year 2026-2027 shall be expended for salary adjustments as recommended by the commission on salaries; provided that the governor may transfer funds between departments and programs to implement any salary adjustments as recommended by the commission on salaries."

(7) By adding a new section to read as follows:

"SECTION XX. Provided that of the special fund appropriation for collective bargaining - statewide (BUF102), the sum of $320,844 or so much thereof as may be necessary for fiscal year 2026-2027 shall be expended for salary adjustments as recommended by the commission on salaries; provided that the governor may transfer funds between departments and programs to implement any salary adjustments as recommended by the commission on salaries."

(8) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for vacation payout - statewide (BUF103), the sum of $9,700,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 shall be expended for the purposes of reimbursing all executive departments and agencies for vacation payouts for general funded employees who have left the employ of the executive branch; provided further that any unexpended funds shall lapse to the general fund at the end of the fiscal year."

(9) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriations for retirement benefits payments (BUF741‑BUF748) for fiscal biennium 2025-2027, balances that are unrequired may be transferred to debt service payments (BUF721-BUF728) and health premium payments (BUF761-BUF768); provided further that the funds shall not be expended for any other purpose; and provided further that any unexpended funds shall lapse to the general fund at the end of the fiscal year for which the appropriation was made."

(10) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriations for health premium payments (BUF761-BUF768) for fiscal biennium 2025-2027, balances that are unrequired may be transferred to debt service payments (BUF721‑BUF728) and retirement benefits payments (BUF741‑BUF748); provided further that the funds shall not be expended for any other purpose; and provided further that any unexpended funds shall lapse to the general fund at the end of the fiscal year for which the appropriation was made."

SECTION 6. Part V of Act 250, Session Laws of Hawaii 2025, is amended by amending section 14 to read as follows:

"SECTION 14. CAPITAL IMPROVEMENT PROJECTS AUTHORIZED. The sums appropriated or authorized in part II of this Act for capital improvements shall be expended for the projects listed below. Accounting of the appropriations by the department of accounting and general services shall be based on the projects as the projects are listed in this section. Several related or similar projects may be combined into a single project if the combination is advantageous or convenient for implementation; provided that the total cost of the projects thus combined shall not exceed the total of the sum specified for the projects separately. The amount after each cost element and the total funding for each project listed in this part are in thousands of dollars.

SECTION 7. Part VI of Act 250, Session Laws of Hawaii 2025, is amended by amending Section 15 to read as follows:

"SECTION 15. Any law to the contrary notwithstanding, the appropriations under Act 164, Session Laws of Hawaii 2023, section 7, as amended and renumbered by Act 230, Session Laws of Hawaii 2024, section 7, in the amounts indicated or balances thereof, unallotted, allotted, unencumbered, or encumbered and unrequired, are hereby lapsed:

"Item No. Amount (MOF)

A-2 $ 400,000 A

A-8 405,000 A

A-15 4,500,000 A

D-12 2,000,000 A

E-2 650,000 A

E-13 12,000,000 A

E-14 1,711,745 A

E-14.1 4,200,000 C

E-17 13,557,000 C

E-18 2,000,000 A

F-3 1,100,000 A

G-6 [$] 500,000 C

G-9.3 671,000 C

G-14.3 660,000 C

G-15.3 1,000,000 C

G-24 2,500,000 C

G-25.1 350,000 C

G-30.1 6,950,000 C

G-36 21,000 C

G-46 6,000,000 C

G-52 2,500,000 C

G-53.2 100,000 C

G-54.1 2,000,000 C

G-61.1 1,000,000 C

G-64 130,000 C

G-70.1 500,000 C

G-78.2 4,000,000 C

G-79.2 150,000 C

G-86.1 1,000,000 C

G-92.1 650,000 C

G-98 200,000 C

G-99.2 1,320,000 C

G-111.2 650,000 C

G-112 3,000,000 C

G-112.1 200,000 C

G-113 1,500,000 C

G-113.2 1,680,000 C

G-113.3 1,000,000 C

G-119 100,000 C

G-121 275,000 A

G-140.2 500,000 C

H-2 2,500,000 A

I-10 1,500,000 A

K-8 10,500,000 A""

SECTION 8. Part VIII of Act 250, Session Laws of Hawaii 2025, is amended:

(1) By adding a new section to read as follows:

"SECTION XX. Where it has been determined that changed conditions, such as a reduction in the particular population being served, permit the reduction in the scope of a capital improvement project described in this Act, the governor may authorize such reduction of project scope."

(2) By adding a new section to read as follows:

"SECTION XX. The governor may authorize the expenditure of funds for capital improvement projects not previously authorized in this Act to cope with the effects of natural disasters or unforeseen emergencies, when the effects of the natural disasters or unforeseen emergencies create an urgent need to pursue a course of action that is in the best interest of the State; provided that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor; and provided further that the governor shall use the powers conferred under section 127A‑13, Hawaii Revised Statutes, or any other applicable law to accomplish the purposes of this section."

(3) By adding a new section to read as follows:

"SECTION XX. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances as may be available from the appropriated funds of any program in this Act to supplement the appropriation for any other program in this Act to cope with the effects of natural disasters or other unforeseen emergencies; provided that the effects of such natural disasters or emergencies create an urgent need to pursue a course of action which is in the best interest of the State; provided further that the use of such funds does not conflict with general law; and provided further that no funds shall be expended without a formal declaration of a natural disaster or emergency by the governor."

(4) By adding a new section to read as follows:

"SECTION XX. No appropriation authorized in this Act for expenditure by a political subdivision of this State shall be considered to be a mandate to undertake new programs or to increase the level of services under existing programs of that political subdivision. If any appropriation authorized in this Act constitutes such a mandate within the provisions of section 5 of article VIII of the Hawaii State Constitution, such authorization shall be void and, in the case of capital improvement appropriations designated to be financed from the general obligation bond fund, the total general obligation bonds authorized for such projects shall be correspondingly decreased."

(5) By adding a new section to read as follows:

"SECTION XX. In the event the State should assume the direct operation of any non‑governmental agency receiving state funds under the provisions of this Act, all such funds shall constitute a credit to the State against the costs of acquiring all or any portion of the property, real, personal, or mixed, of such non‑governmental agency. This credit shall be applicable regardless of when such acquisition takes place."

(6) By adding a new section to read as follows:

"SECTION XX. Any provision of this Act to the contrary notwithstanding, the federal fund or other federal fund appropriations made for operating costs authorized under this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all federal fund or other federal fund appropriations made to be expended in fiscal year 2025‑2026 which are unencumbered as of June 30, 2028, shall lapse as of that date and fiscal year 2026‑2027 which are unencumbered as of June 30, 2029, shall lapse as of that date."

(7) By adding a new section to read as follows:

"SECTION XX. The governor may approve the expenditure of all federal funds that are in excess of levels authorized by the legislature; provided further that the governor may allow for an increase in the appropriate federal fund authorization ceiling for the program to accommodate the expenditure of such funds."

(8) By adding a new section to read as follows:

"SECTION XX. Any provision of this Act to the contrary notwithstanding, the governor may approve the extension of the lapse dates for federal fund or other federal fund appropriations and appropriations of other means of financing, except general funds, deemed necessary to qualify for federal aid financing and/or reimbursement, provided in this Act or authorized by the governor pursuant to section XX of this Act as necessary to meet the intent of the federal grant awards."

(9) By adding a new section to read as follows:

"SECTION XX. Where an agency is authorized to secure funds or other property from private organizations or individuals to be expended or utilized in connection with any authorized program, the agency, with the governor's approval, may enter into such undertaking, provided that the provisions of the undertaking comply with applicable state constitutional and statutory requirements."

(10) By adding a new section to read as follows:

"SECTION XX. Except as otherwise provided by general law, negotiations for the purchase of land by state agencies shall be subject to the approval of the governor and the department of land and natural resources, or other appropriate agency; provided that private lands may be acquired for the purpose of exchange for federal lands when the department of land and natural resources and the governor determine that such acquisition and exchange are necessary for the completion of any project specifically authorized by this Act."

(11) By adding a new section to read as follows:

"SECTION XX. Except as otherwise provided, or except as prohibited by specific grant conditions, all federal or non‑general fund reimbursements received by state programs shall be returned to the general fund or fund of originating expenses."

(12) By adding a new section to read as follows:

"SECTION XX. Unless otherwise provided in this Act, the governor is authorized to transfer operating funds between appropriations within the same fund, within an expending agency, for operating purposes."

(13) By adding a new section to read as follows:

"SECTION XX. Except as otherwise provided in this Act, each department or agency is authorized to transfer positions within its respective authorized position ceiling for the purpose of maximizing the utilization of personnel resources and staff productivity; provided that all such actions shall be with the prior approval of the governor and shall be consistent with appropriations provided in this Act and with provisions of part II of chapter 37, Hawaii Revised Statutes."

(14) By adding a new section to read as follows:

"SECTION XX. Any law or provision to the contrary notwithstanding, in expending funds for social welfare programs, education programs, and other programs and agencies having appropriations that are based on population and workload data as specified in the executive budget document, only so much as is necessary to provide the level of services intended by the legislature shall be expended. Affected agencies shall reduce expenditures below appropriations under procedures prescribed by the department of budget and finance in the event actual population and workload trends are less than the figures projected."

(15) By adding a new section to read as follows:

"SECTION XX. With the approval of the governor, expending agencies that use operating appropriations authorized in part II of this Act for planning, land acquisition, design, construction, and equipment for repair and alterations may delegate responsibility and transfer funds to public works – planning, design and construction (AGS221) for the implementation of the repair and alterations, when it is determined by the agencies that it is advantageous to do so."

(16) By adding a new section to read as follows:

"SECTION XX. Provided that of the appropriation for each principal state department as defined by section 26‑4, Hawaii Revised Statutes, the sum of $2,500 in fiscal year 2026‑2027 shall be made available in each department to be established as a separate account for a protocol fund to be expended at the discretion of the executive head of the department or agency (i.e., director, chairperson, comptroller, adjutant general, superintendent, president, or attorney general)."

(17) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for Hawaii state public library system (EDN407), the sum of $2,500 for fiscal year 2026‑2027 may be used to establish a separate protocol account to be expended at the discretion of the state librarian."

(18) By adding a new section to read as follows:

"SECTION XX. Provided that of the general fund appropriation for financial administration (BUF115), the sum of $4,000 for fiscal year 2026‑2027 may be used to establish a separate protocol account to be expended at the discretion of the director of finance for the promotion and improvement of state bond ratings and sales."

(19) By adding a new section to read as follows:

"SECTION XX. Provided that of the special fund appropriation for spectator events and shows – aloha stadium (BED180), the sum of $2,500 for fiscal year 2026‑2027 may be expended at the discretion of the stadium manager for stadium‑related purposes."

(20) By adding a new section to read as follows:

"SECTION XX. Except as otherwise provided, the appropriation for the office of the governor (GOV100) shall be expended at the discretion of the governor."

(21) By adding a new section to read as follows:

"SECTION XX. Except as otherwise provided, the appropriation for the office of the lieutenant governor (LTG100) shall be expended at the discretion of the lieutenant governor."

(22) By adding a new section to read as follows:

"SECTION XX. The director of finance is authorized to expend general fund, special fund, and revolving fund savings or balances determined to be available from authorized general fund, special fund, and revolving fund program appropriations, up to an aggregate total of $50,000,000 for fiscal year 2025‑2026 and $50,000,000 for fiscal year 2026‑2027, for municipal lease payments under financing agreements entered into pursuant to chapter 37D, Hawaii Revised Statutes, to finance the acquisition of depreciable assets, including, but not limited to, automobiles, computers, printers, and telecommunications equipment; provided that designated expending agencies (including the department of education and the University of Hawaii) for municipal lease payments and for depreciable assets, including, but not limited to, automobiles, computers, printers, and telecommunications equipment authorized in this Act may delegate to the director of finance the implementation of such acquisitions when it is determined by all involved agencies that it is advantageous to do so."

(23) By adding a new section to read as follows:

"SECTION XX. Notwithstanding any provision in part III of this Act, the governor is authorized to transfer savings or unrequired balances as may be available of general funds from any program in this Act to supplement the department of land and natural resources' fire-fighter's contingency fund; provided that these funds shall be used to prevent, control, and extinguish wildland fires within forest reserves, public hunting areas, wildlife and plant sanctuaries, and natural area reserves, and to fulfill mutual aid agreements in cooperation with fire control agencies of the counties and federal government."

(24) By adding a new section to read as follows:

"SECTION XX. Provided that the director of finance shall ensure that non-facility per pupil general fund amounts allocated for department of education and charter school students are equal on an annualized fiscal year basis; provided further that, for the purposes of this section, all general fund appropriations for school-based budgeting (EDN100), instructional support (EDN200), state administration (EDN300), and school support (EDN400) shall be considered non-facility appropriations for the department of education; provided further that for the purposes of this section, the general fund appropriation for charter schools (EDN600) shall be considered the non‑facility appropriation for charter schools; provided further that, for the purposes of this section, all grant appropriations issued pursuant to chapter 42F, Hawaii Revised Statutes, shall be excluded from non-facility appropriations for the department of education and charter schools; and provided further that, notwithstanding any other law to the contrary, for fiscal year 2026‑2027, the director of finance shall:

(1) Determine the sum of general fund appropriations made for the department of education and charter school student non‑facility costs;

(2) Determine the sum of department of education and charter school student enrollment based upon verified actual student enrollment counts as of October 15;

(3) Determine a per pupil amount by dividing the sum of general fund appropriations determined under paragraph (1) by the sum of student enrollment determined under paragraph (2);

(4) Transfer a general fund amount between the department of education and charter schools prior to November 1, 2026, respectively, that will provide each with a per pupil allocation equal to the amount determined on an annualized fiscal year basis under paragraph (3); and

(5) Account for all calculations and transfers made pursuant to this section in a report to the legislature, governor, department of education, and charter schools within ten days of any transfer made pursuant to this section."

SECTION 9. If any portion of this Act or its application to any person, entity, or circumstance is held to be invalid for any reason, then the legislature declares that the remainder of the Act and each and every other provision thereof shall not be affected thereby. If any portion of a specific appropriation is held to be invalid for any reason, the remaining portion shall be expended to fulfill the objective of such appropriation to the extent possible.

SECTION 10. In the event manifest clerical, typographical or other mechanical errors are found in this Act, the governor is hereby authorized to correct such errors.

SECTION 11. Nothing in this Act shall affect the validity or continuing effectiveness of any provisions of Act 250, Session Laws of Hawaii 2025, not repealed or modified by this Act.

SECTION 12. Material to be repealed is bracketed and stricken. New statutory material is underscored. In printing this Act, the revisor of statutes need not include the bracketed material or the underscoring.

SECTION 13. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	1800
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII