REPORT TITLE:
Repair Special Fund

DESCRIPTION:
Creates school priority repairs and maintenance special fund to
finance major repair projects.  Requires the Governor to hold a
public hearing prior to restricting any funds from the school
priority repairs and maintenance special fund.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2451
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO A REPAIRS AND MAINTENANCE SPECIAL FUND.
 


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

 1      SECTION 1.  Chapter 103, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "103-      School priority repairs and maintenance special
 
 5 fund.  (a)  There is established within the state treasury the
 
 6 school priority repairs and maintenance special fund for the
 
 7 department of education, which shall be administered by the
 
 8 department of accounting and general services.  The school
 
 9 priority repairs and maintenance special fund shall be funded
 
10 from the proceeds of general obligation bonds of the State,
 
11 revenue bonds, or other evidences of indebtedness of the State as
 
12 may be authorized by the legislature from time to time, or from
 
13 other sources as the legislature may determine.
 
14      (b)  Pending authorization and issuance of such obligations,
 
15 the director of finance, with the approval of the governor, may
 
16 advance $            , or so much thereof as is requested by the
 
17 board of education, to the school priority repairs and
 
18 maintenance special fund from moneys available in the general
 
19 fund; provided that the moneys advanced from the general fund
 

 
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 1 shall be repaid by the department of education or by the State
 
 2 from the proceeds of general obligation bonds issued for the
 
 3 purposes of the fund, or from other sources.
 
 4      (c)  General obligation bonds issued for the purposes of the
 
 5 school priority repairs and maintenance special fund shall have a
 
 6 maturity date of not more than ten years.
 
 7      (d)  The school priority repairs and maintenance special
 
 8 fund shall be used for major repairs that extend the useful life
 
 9 of a school facility through a significant improvement or
 
10 upgrade, or provide a better functional or operational
 
11 efficiency.  Major repairs include reroofing, upgrading power
 
12 distribution systems, replacing air conditioning equipment, and
 
13 other repairs that have an anticipated life that generally
 
14 reflect the life of the bond.
 
15      (e)  The board of education, with the assistance of the
 
16 comptroller, shall decide on the specific repair and maintenance
 
17 projects to be implemented.  The comptroller shall implement the
 
18 department of education's respective repair and maintenance
 
19 projects based on the priority list established by the board of
 
20 education.
 
21      (f)  The comptroller may transfer funds from the school
 
22 priority repairs and maintenance special fund account to the
 
23 department of education to implement the department's own repair
 

 
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 1 and maintenance program.
 
 2      (g)  Prior to the implementation of any reduction in
 
 3 allotment proposed by the comptroller, the director of finance,
 
 4 or the governor on repair and maintenance projects financed under
 
 5 this section, the comptroller shall notify the president of the
 
 6 senate, the speaker of the house of representatives, and the
 
 7 chairpersons of the senate committee on ways and means and the
 
 8 house of representatives committee on finance, respectively, of
 
 9 the comptroller's, director's, or governor's intent, and hold a
 
10 public informational hearing on the proposed restriction."
 
11      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "36-27  Transfers from special funds for central service
 
14 expenses.  Except as provided in this section, and
 
15 notwithstanding any other law to the contrary, from time to time
 
16 the director of finance, for the purpose of defraying the
 
17 prorated estimate of central service expenses of government in
 
18 relation to all special funds, except the:
 
19      (1)  Special summer school and intersession fund under
 
20           section 302A-1310;
 
21      (2)  School cafeteria special funds of the department of
 
22           education;
 
23      (3)  Special funds of the University of Hawaii;
 

 
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 1      (4)  State educational facilities improvement special fund;
 
 2      (5)  Convention center capital and operations special fund
 
 3           under section 206X-10.5;
 
 4      (6)  Special funds established by section 206E-6;
 
 5      (7)  Housing loan program revenue bond special fund;
 
 6      (8)  Housing project bond special fund;
 
 7      (9)  Aloha Tower fund created by section 206J-17;
 
 8     (10)  Domestic violence prevention special fund under section
 
 9           321-1.3;
 
10     (11)  Spouse and child abuse special account under section
 
11           346-7.5;
 
12     (12)  Spouse and child abuse special account under section
 
13           601-3.6;
 
14     (13)  Funds of the employees' retirement system created by
 
15           section 88-109;
 
16     (14)  Unemployment compensation fund established under
 
17           section 383-121;
 
18     (15)  Hawaii hurricane relief fund established under chapter
 
19           431P;
 
20     (16)  Hawaii health systems corporation special funds;
 
21     (17)  Boiler and elevator safety revolving fund established
 
22           under section 397-5.5;
 
23     (18)  Tourism special fund established under section 201B-11;
 

 
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 1     (19)  Department of commerce and consumer affairs' special
 
 2           funds;
 
 3     (20)  Compliance resolution fund established under section
 
 4           26-9;
 
 5     (21)  Universal service fund established under chapter 269;
 
 6     (22)  Integrated tax information management systems special
 
 7           fund under section 231-3.2;
 
 8     (23)  Insurance regulation fund under section 431:2-215;
 
 9     (24)  Hawaii tobacco settlement special fund under section
 
10           328L-2; [and]
 
11     (25)  Emergency budget and reserve fund under section 328L-3;
 
12           and
 
13     (26)  School priority repairs and maintenance special fund
 
14           established under section 103-  ;
 
15 shall deduct five per cent of all receipts of all other special
 
16 funds, which deduction shall be transferred to the general fund
 
17 of the State and become general realizations of the State.  All
 
18 officers of the State and other persons having power to allocate
 
19 or disburse any special funds shall cooperate with the director
 
20 in effecting these transfers.  To determine the proper revenue
 
21 base upon which the central service assessment is to be
 
22 calculated, the director shall adopt rules pursuant to chapter 91
 
23 for the purpose of suspending or limiting the application of the
 

 
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 1 central service assessment of any fund.  No later than twenty
 
 2 days prior to the convening of each regular session of the
 
 3 legislature, the director shall report all central service
 
 4 assessments made during the preceding fiscal year."
 
 5      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (a) to read as follows:
 
 7      "(a) Each special fund, except the:
 
 8      (1)  Transportation use special fund established by section
 
 9           261D-1;
 
10      (2)  Special summer school and intersession fund under
 
11           section 302A-1310;
 
12      (3)  School cafeteria special funds of the department of
 
13           education;
 
14      (4)  Special funds of the University of Hawaii;
 
15      (5)  State educational facilities improvement special fund;
 
16      (6)  Special funds established by section 206E-6;
 
17      (7)  Aloha Tower fund created by section 206J-17;
 
18      (8)  Domestic violence prevention special fund under section
 
19           321-1.3;
 
20      (9)  Spouse and child abuse special account under section
 
21           346-7.5;
 
22     (10)  Spouse and child abuse special account under section
 
23           601-3.6;
 

 
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 1     (11)  Funds of the employees' retirement system created by
 
 2           section 88-109;
 
 3     (12)  Unemployment compensation fund established under
 
 4           section 383-121;
 
 5     (13)  Hawaii hurricane relief fund established under chapter
 
 6           431P;
 
 7     (14)  Convention center capital and operations special fund
 
 8           established under section 206X-10.5; 
 
 9     (15)  Hawaii health systems corporation special funds; 
 
10     (16)  Tourism special fund established under section 201B-11;
 
11     (17)  Compliance resolution fund established under section
 
12           26-9;
 
13     (18)  Universal service fund established under chapter 269;
 
14     (19)  Integrated tax information management systems special
 
15           fund;
 
16     (20)  Insurance regulation fund under section 431:2-215;
 
17     (21)  Hawaii tobacco settlement special fund under section
 
18           328L-2; [and]
 
19     (22)  Emergency and budget reserve fund under section 328L-3;
 
20           and
 
21     (23)  School priority repairs and maintenance special fund
 
22           established under section 103-  ;
 
23 shall be responsible for its pro rata share of the administrative
 

 
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                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        


 1 expenses incurred by the department responsible for the
 
 2 operations supported by the special fund concerned."
 
 3      SECTION 4.  The director of finance is authorized to issue
 
 4 general obligation bonds in the sum of $            , or so much
 
 5 thereof as may be necessary, and the same sum, or so much thereof
 
 6 as may be necessary, is appropriated for fiscal year 2000-2001,
 
 7 to be deposited in the school priority repairs and maintenance
 
 8 special fund established pursuant to section 1 of this Act.
 
 9      SECTION 5.  The sum appropriated shall be expended by the
 
10 department of accounting and general services for the purposes of
 
11 section 1 of this Act.
 
12      SECTION 6.  There is appropriated out of the general
 
13 revenues of the State of Hawaii the sum of $           , or so
 
14 much thereof as may be necessary for fiscal year 2000-2001, to be
 
15 deposited in the school priority repairs and maintenance special
 
16 fund established pursuant to section 1 of this Act.
 
17      SECTION 7.  The sum appropriated shall be expended by the
 
18 department of accounting and general services for the purposes of
 
19 this Act.
 
20      SECTION 8.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 9.  This Act shall take effect on July 1, 2000;
 
23 provided that the amendments made to section 36-27, Hawaii
 

 
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                                                        S.D. 1
                                                        


 1 Revised Statutes by this Act shall not be repealed when the
 
 2 section is reenacted on July 31, 2003, pursuant to section 9 of
 
 3 Act 142, Session Laws of Hawaii 1998.