THE SENATE

S.B. NO.

2598

THIRTY-THIRD LEGISLATURE, 2026

H.D. 1

STATE OF HAWAII

C.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO NON-GENERAL FUNDS.

 

 

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

 

     SECTION 1.  The legislature finds that fluctuating federal policies continue to cause widespread challenges across the country, including reduced funding for federal and state programs that provide essential community services.  To address these often sudden changes, the executive branch must have the ability to adapt to fluctuating revenue projections by shifting available moneys.

     Accordingly, the purpose of this Act is to allow the moneys in certain special or revolving funds to be used for administrative and operating costs of the related programs.

     SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The corporation shall hold the fund in an account or accounts separate from other funds.  The corporation shall [invest and reinvest] use the fund [and the income thereof] to:

     (1)  Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

     (2)  Acquire interests or rights in land having value to the State for agricultural production, agricultural infrastructure, irrigation, watershed protection related to agricultural viability, or other purpose consistent with this chapter.  The interests or rights in land acquired may include the fee title, the establishment of a permanent conservation easement under chapter 198, an agricultural easement, or other easement or interest in the land.  The acquisition shall constitute a public purpose for which public funds may be expended or advanced;

     (3)  Pay costs related to the operation, maintenance, and management of lands acquired under paragraph (2) that are necessary to protect, maintain, or restore resources that are at risk on those lands, or that provide for greater public access and enjoyment of the lands; provided that the payment of costs from the fund related to the operation, maintenance, and management of lands acquired under paragraph (2) shall not exceed five per cent of the fund's annual fund revenues for the previous year;

     (4)  Pay debt service on state financial instruments relating to the acquisition of land under paragraph (2);

    [(2)] (5)  Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

    [(3)] (6)  Purchase securities as may be lawful investments for fiduciaries in the State.

     All appropriations, grants, contractual reimbursements, and other funds not designated for this purpose may be used to pay for the proper general expenses and to carry out the purposes of the corporation[.], including for personnel and other operating costs.

     Any net proceeds or revenue from the operation, management, sale, lease, or other disposition of land or the improvements on the land acquired or constructed by the board under this chapter shall be deposited into or credited to the fund."

     SECTION 3.  Section 206E-16, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-16  Hawaii community development special fund.  There is created the Hawaii community development special fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter[.], including the costs of its administration."

     SECTION 4.  Section 206M-62, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-62[]]  Strategic development programs revolving fund.  (a)  There is established the strategic development programs revolving fund.  The following moneys shall be deposited into the strategic development programs revolving fund and shall not be considered part of the general fund:  all moneys appropriated by the legislature, received as repayments of loans, earned on investments, received pursuant to a venture agreement, received as royalties, received as premiums or fees charged by the development corporation, or otherwise received by the development corporation.

     (b)  Moneys in the strategic development programs revolving fund shall be used for the following purposes:

     (1)  To administer and fund the cost of operations of strategic development programs under part V of chapter 206M; and

     (2)  For any other purpose deemed necessary to carry out the purposes of part V of chapter 206M."

     SECTION 5.  Section 302A-1706, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The school facilities special fund shall be administered by the authority and used to fund any school development, planning, or construction project, including prekindergarten facilities, within the jurisdiction of the authority[.], including the cost of operations."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

 

Report Title:

Special Funds; Revolving Funds

 

Description:

Authorizes the use of moneys in certain special and revolving funds for operation and administration costs of related programs.  Authorizes the use of the Hawaii agricultural development revolving fund moneys for the acquisition of interests or rights in land and any ongoing costs related thereto.  (CD1)

 

 

 

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