THE SENATE

S.B. NO.

101

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STATE FUNDS.

 

 

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

 


     Section 1.  The purpose of this Act is to meet the mandate of article VII, section 6, of the Hawaii Constitution, regarding the disposition of excess general fund revenues.  Whenever the state general fund balance at the close of each of two successive fiscal years exceeds five per cent of the general fund revenues for each of the two fiscal years, article VII, section 6, of the Hawaii Constitution mandates the legislature to take certain action regarding the use of the excess general fund revenues.  Under the constitutional amendment of Senate Bill No. 2554 passed during the 2016 regular session and approved by the voters on November 8, 2016, the legislature may, among other options, appropriate excess general fund revenues for the pre-payment of the State's pension or other post-employment benefit liability.  Senate Bill No. 2554 also retains the option to deposit excess general fund revenues into a fund that serves as a temporary supplemental source of funding for the State in times of an emergency, economic downturn, or unforeseen reduction in revenue.  The legislature finds that this Act utilizes those options to comply with article VII, section 6, of the Hawaii Constitution.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 for deposit into the emergency and budget reserve fund.

     The sum appropriated shall be deposited by the department of budget and finance into the emergency and budget reserve fund established by section 328L-3, Hawaii Revised Statutes.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 for the pre-payment of the State's unfunded accrued pension liability for state employees.

     The sum appropriated shall be transmitted by the department of budget and finance to the employees' retirement system for:

     (1)  Deposit into the pension accumulation fund established by section 88-114, Hawaii Revised Statues; and

     (2)  Credit against the unfunded accrued pension liability of state employees.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2017-2018 for the pre-payment of the State's annual required contribution to cover its other post-employment benefit liability under the Hawaii employer-union health benefits trust fund.

     The sum appropriated shall be transmitted by the department of budget and finance to the Hawaii employer-union health benefits trust fund for:

     (1)  Deposit into the trust fund for other post-employment benefits established by section 87A-42, Hawaii Revised Statutes; and

     (2)  Credit against the unfunded accrued liability for the other post-employment benefits of state retirees.

     SECTION 5.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Emergency and Budget Reserve Fund; Accrued Pension Liability; Other Post-Employment Benefits Liability; Appropriation

 

Description:

Makes appropriations for the pre-payment of the accrued pension liability and other post-employment benefits liability of the State.  Makes an appropriation to the emergency and budget reserve fund.  States the intent that this Act is intended to comply with the mandate of Article VII, Section 6, of the Hawaii Constitution regarding the disposition of excess general fund revenues.

 

 

 

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