HOUSE OF REPRESENTATIVES

H.B. NO.

2875

TWENTY-FIFTH LEGISLATURE, 2010

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII HURRICANE RESERVE TRUST FUND.

 

 

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

 


     SECTION 1.  The purpose of this Act is to authorize the loan of moneys from the Hawaii hurricane reserve trust fund to the general fund.

     This Act takes effect upon its approval and sunsets on June 30, 2015.

     SECTION 2.  Section 431P-16, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (g) to read:

     "(g)  Any proceeds from loans or other moneys from the federal government, any proceeds from bonds issued pursuant to this chapter loaned by the director to the Hawaii hurricane relief fund, any repayment of principal and interest on loans to the general fund, and other moneys as the State may make available from time to time shall be deposited into the hurricane reserve trust fund."

     2.  By amending subsection (i) to read:

     "(i)  Moneys in the hurricane reserve trust fund may be:

     (1)  Disbursed upon dissolution of the Hawaii hurricane relief fund; provided that:

         (A)  The net moneys in the hurricane reserve trust fund shall revert to the state general fund after payments by the fund on behalf of licensed property and casualty insurers or the State that are required to be made pursuant to any federal disaster insurance program enacted to provide insurance or reinsurance for hurricane risks are completed; and

         (B)  If such moneys are paid on behalf of licensed property and casualty insurers, payment shall be made in proportion to the premiums from policies of hurricane property insurance serviced by the insurers in the twelve months prior to dissolution of the fund; or

     (2)  [Deposited to the loss mitigation grant fund established under section 431:22-102;] Loaned to the general fund pursuant to legislative act and expended in place of previously appropriated general funds;

provided that all interest earned from the principal in the hurricane reserve trust fund shall be transferred and deposited into the general fund each year that the hurricane reserve trust fund remains in existence.

     Any legislative act that provides for the loan of moneys from the Hawaii hurricane reserve trust fund to the general fund shall also provide for the repayment of the entire principal of and, if any, interest on the loan by June 30 of the second fiscal year following the fiscal year in which the act takes effect or June 30, 2015, whichever is earlier.  As the means of repayment, the legislative act shall dedicate general revenues from an existing or new tax or fee.  If the principal and interest are not fully repaid by the applicable deadline, the director of finance shall transfer the delinquent amount from the general fund to the Hawaii hurricane reserve trust fund.  No penalty shall be charged on any delinquent principal or interest.  The director shall make the transfer without necessity of appropriation or any other legislation."

     SECTION 3.  Section 431P-16.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§431P-16.5[]]  Transfer or loan of funds; immunity.  There shall be no cause of action, claim for damages or relief, charge, or any other liability of any kind whatsoever created against the State, the Hawaii hurricane relief fund, the commissioner, or their respective agents, employees, or board, by, or relating to[, the]:

     (1)  The transfer of any moneys from the hurricane reserve trust fund to the loss mitigation grant fund or from the loss mitigation grant fund to the hurricane reserve trust fund or involving the loss mitigation grant program[.]; or

     (2)  The loan of any moneys from the hurricane reserve trust fund to the general fund."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval and shall be repealed on June 30, 2015; provided that:

     (1)  Sections 431P-16 and 431P-16.5, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective day of this Act; and

     (2)  The repeal of this Act shall not affect the obligation of the State to repay any loan made from the Hawaii hurricane relief fund pursuant to this Act.

 



 

 

Report Title:

Hawaii Hurricane Reserve Trust Fund; Loan To General Fund

 

Description:

Authorizes the loan of moneys from the Hawaii hurricane reserve trust fund to the general fund.  Takes effect upon approval and sunsets on 06/30/15. (HB2875 HD1)

 

 

 

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