STAND. COM. REP. NO.3260

Honolulu, Hawaii

, 2002

RE: H.B. No. 2827

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2827, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE FINANCES,"

begs leave to report as follows:

The purpose of this measure is to transfer moneys from special and revolving funds into the general fund.

The bill also:

(1) Establishes the Litigation Deposits Trust Fund;

(2) Establishes criteria for the establishment and continuance of new special and revolving funds by the legislature;

(3) Requires the Department of Budget and Finance to audit each special and revolving fund under certain conditions;

(4) Requires all general funds encumbered but not expended within one fiscal year to lapse into the general fund;

(5) Establishes criteria for the establishment and continuance of administratively established accounts and funds;

(6) Allows appropriations from the Emergency and Budget Reserve Fund for programs essential to education; and

(7) Reclassifies, repeals, or discontinues certain special and revolving funds pursuant to recommendations of the Auditor.

Your Committee has amended the bill by changing various dollar amounts transferred from special or revolving funds to the general fund and by transferring moneys from the following additional special or revolving funds (and amounts) to the general fund:

(1) The Assistance for Agricultural Enterprises on Kauai Revolving Fund ($500,000);

(2) The Assistance for Aquaculture Enterprise on Kauai Revolving Fund ($500,000);

(3) The Aloha Tower Development Fund ($1,600,000);

(4) The Natural Energy Laboratory of Hawaii Authority Special Fund ($400,000);

(5) The Tourism Research Special Fund Account ($450,000);

(6) The Rental Housing Trust Fund ($2,000,000);

(7) The Kalaeloa Community Development Revolving Fund ($51,950); and

(8) The Spouse and Child Abuse Special Fund ($150,000).

Your Committee has also amended the bill by deleting provisions relating to:

(1) Criteria for the establishment and continuance of special and revolving funds;

(2) Audit of excess funds remaining in special or revolving funds at the end of the fiscal year;

(3) General funds encumbered for more than one fiscal year;

(4) Criteria for the establishment and continuance of administratively established accounts and funds; and

(5) Transferring funds from the following special or revolving funds to the general fund:

(A) The Petroleum Products Control Fund;

(B) The Human Resource Development Special Fund;

(C) The Beach Restoration Special Fund;

(D) The Correctional Industries Revolving Fund;

(E) The Halawa Correctional Facility Inmate Store Revolving Fund;

(F) The Oahu Community Correctional Center Inmate Store Revolving Fund; and

(G) The Women's Community Correctional Center Inmate Store Revolving Fund.

Your Committee has also amended the bill by:

(1) Expanding the conditions under which moneys received through litigation are exempted from deposit into the Litigation Deposits Trust Fund;

(2) Easing the reporting requirements to the legislature regarding the Litigation Deposits Trust Fund; and

(3) Making technical changes that have no substantive effect.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2827, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2827, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair