HOUSE OF REPRESENTATIVES

H.B. NO.

2540

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

PROPOSING AMENDMENTS TO THE CONSTITUTION OF THE STATE OF HAWAII RELATING TO THE STATE FISCAL STABILIZATION FUND.

 

 

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

 


     SECTION 1.  The purpose of this Act is to establish the state fiscal stabilization fund and require revenues to be deposited into the fund as a means of providing the State with a financial reserve fund.

     SECTION 2.  Article VII of the Constitution of the State of Hawaii is amended by adding a new section to read as follows:

"STATE FISCAL STABILIZATION FUND

     Section  .  There is established in the state treasury the state fiscal stabilization fund, into which shall be deposited revenue sources previously deposited into the emergency and budget reserve fund, and five per cent of the state general fund balance at the close of the fiscal year whenever state general fund revenues for each of two successive fiscal years exceeds revenues for each of the preceding fiscal years by five per cent; provided that whenever the balance of the state fiscal stabilization fund is more than ten percent of general fund revenues for the preceding fiscal year, no deposits shall be made to the fund.

     For the purposes of determining whether the legislature in the next regular session shall provide for a tax refund or tax credit to the taxpayers of the state, as provided under Article VII, section 6 of the Constitution of the State of Hawaii, the transfer into the state fiscal stabilization fund shall occur first before calculating if the requirements of Article VII, section 6 are met.

     Moneys deposited into the state fiscal stabilization fund shall be deposited into the fund by a transfer executed by the director of finance.

     Moneys in the state fiscal stabilization fund shall only be used during times of severe economic downturn or unforeseen reduction in revenues to cover current state fiscal obligations, as provided by law.  Any appropriations from the state fiscal stabilization fund shall require a two-thirds majority vote of each house of the legislature."

     SECTION 3.  The question to be printed on the ballot shall be as follows:

     "Shall the State Constitution be amended to establish the State Fiscal Stabilization Fund and require state revenues to be saved in the fund to pay the financial obligations of the State during fiscal emergencies?"

     SECTION 4.  New Constitutional material is underscored.

     SECTION 5.  This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.

 

INTRODUCED BY:

_____________________________

 

 

By Request


 


 

Report Title:

Constitutional Amendment; State Fiscal Stabilization Fund

 

Description:

Ensures funds are available for future fiscal emergencies by creating the State Fiscal Stabilization Fund in the Constitution and requiring five percent of general fund end of year balances to be deposited into it.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.