SB 2598: Special Funds; Revolving Funds

A BILL FOR AN ACT

RELATING TO NON-GENERAL FUNDS.

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

     SECTION 1.  The legislature finds that fluctuating federal policies continue to cause widespread challenges across the country, including reduced funding for federal and state programs that provide essential community services.  To address these often sudden changes, the executive branch must have the ability to adapt to fluctuating revenue projections by shifting available moneys.

     Accordingly, the purpose of this Act is to allow the moneys in certain special or revolving funds to be used for administrative and operating costs of the related programs.

     SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The corporation shall hold the fund in an account or accounts separate from other funds.  The corporation shall [invest and reinvest] use the fund [and the income thereof] to:

     (1)  Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

     (2)  Acquire interests or rights in land having value to the State for agricultural production, agricultural infrastructure, irrigation, watershed protection related to agricultural viability, or other purpose consistent with this chapter.  The interests or rights in land acquired may include the fee title, the establishment of a permanent conservation easement under chapter 198, an agricultural easement, or other easement or interest in the land.  The acquisition shall constitute a public purpose for which public funds may be expended or advanced;

     (3)  Pay costs related to the operation, maintenance, and management of lands acquired under paragraph (2) that are necessary to protect, maintain, or restore resources that are at risk on those lands, or that provide for greater public access and enjoyment of the lands; provided that the payment of costs from the fund related to the operation, maintenance, and management of lands acquired under paragraph (2) shall not exceed five per cent of the fund's annual fund revenues for the previous year;

     (4)  Pay debt service on state financial instruments relating to the acquisition of land under paragraph (2);

    [(2)] (5)  Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

    [(3)] (6)  Purchase securities as may be lawful investments for fiduciaries in the State.

     All appropriations, grants, contractual reimbursements, and other funds not designated for this purpose may be used to pay for the proper general expenses and to carry out the purposes of the corporation[.], including for personnel and other operating costs.

     Any net proceeds or revenue from the operation, management, sale, lease, or other disposition of land or the improvements on the land acquired or constructed by the board under this chapter shall be deposited into or credited to the fund."

     SECTION 3.  Section 206E-16, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-16  Hawaii community development special fund.  There is created the Hawaii community development special fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter[.], including the costs of its administration."

     SECTION 4.  Section 206M-62, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-62[]]  Strategic development programs revolving fund.  (a)  There is established the strategic development programs revolving fund.  The following moneys shall be deposited into the strategic development programs revolving fund and shall not be considered part of the general fund:  all moneys appropriated by the legislature, received as repayments of loans, earned on investments, received pursuant to a venture agreement, received as royalties, received as premiums or fees charged by the development corporation, or otherwise received by the development corporation.

     (b)  Moneys in the strategic development programs revolving fund shall be used for the following purposes:

     (1)  To administer and fund the cost of operations of strategic development programs under part V of chapter 206M; and

     (2)  For any other purpose deemed necessary to carry out the purposes of part V of chapter 206M."

     SECTION 5.  Section 302A-1706, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The school facilities special fund shall be administered by the authority and used to fund any school development, planning, or construction project, including prekindergarten facilities, within the jurisdiction of the authority[.], including the cost of operations."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

Report Title:

Special Funds; Revolving Funds

Description:

Authorizes the use of moneys in certain special and revolving funds for operation and administration costs of related programs.  Authorizes the use of the Hawaii agricultural development revolving fund moneys for the acquisition of interests or rights in land and any ongoing costs related thereto.  (CD1)

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

A BILL FOR AN ACT

RELATING TO NON-GENERAL FUNDS.

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

     SECTION 1.  The legislature finds that fluctuating federal policies continue to cause widespread challenges across the country, including reducefunding for federal and state programs that provide essential community services.  To address these often sudden changes, the executive branch must have the ability to adapt to fluctuating revenue projections by shifting available moneys.

     Accordingly, the purpose of this Act is to allow the moneys in certain special or revolving funds to be used for administrative and operating costs of the related programs.

     SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The corporation shall hold the fund in an account or accounts separate from other funds.  The corporation shall invest and reinvest the fund and the income thereof to:

     (1)  Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

     (2)  Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

     (3)  Purchase securities as may be lawful investments for fiduciaries in the State.

     All appropriations, grants, contractual reimbursements, and other funds not designated for this purpose may be used to pay for the proper general expenses and to carry out the purposes of the corporation[.], including for personnel and other operating costs."

     SECTION 3.  Section 206E-16, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-16  Hawaii community development special fund.  There is created the Hawaii community development special fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter[.], including the costs of its administration."

     SECTION 4.  Section 206M-62, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-62[]]  Strategic development programs revolving fund.  (a)  There is established the strategic development programs revolving fund.  The following moneys shall be deposited into the strategic development programs revolving fund and shall not be considered part of the general fund:  all moneys appropriated by the legislature, received as repayments of loans, earned on investments, received pursuant to a venture agreement, received as royalties, received as premiums or fees charged by the development corporation, or otherwise received by the development corporation.

     (b)  Moneys in the strategic development programs revolving fund shall be used for the following purposes:

     (1)  To administer and fund the cost of operations of strategic development programs under part V of chapter 206M; and

     (2)  For any other purpose deemed necessary to carry out the purposes of part V of chapter 206M."

     SECTION 5.  Section 302A-1706, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The school facilities special fund shall be administered by the authority and used to fund any school development, planning, or construction project, including prekindergarten facilities, within the jurisdiction of the authority[.], including the cost of operations."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Special Funds; Revolving Funds

Description:

Authorizes the use of moneys in certain special and revolving funds for operation and administration costs of the programs.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

RELATING TO NON-GENERAL FUNDS.

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

     SECTION 1.  The legislature finds that fluctuating federal policies continue to cause widespread challenges across the country, including reduced funding for federal and state programs that provide essential community services.  To address these often sudden changes, the executive branch must have the ability to adapt to fluctuating revenue projections by shifting available moneys.

     Accordingly, the purpose of this Act is to allow the moneys in certain special or revolving funds to be used for administrative and operating costs of the related programs.

     SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The corporation shall hold the fund in an account or accounts separate from other funds.  The corporation shall invest and reinvest the fund and the income thereof to:

     (1)  Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

     (2)  Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

     (3)  Purchase securities as may be lawful investments for fiduciaries in the State.

     All appropriations, grants, contractual reimbursements, and other funds not designated for this purpose may be used to pay for the proper general expenses and to carry out the purposes of the corporation[.], including for personnel and other operating costs."

     SECTION 3.  Section 206E-16, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-16  Hawaii community development special fund.  There is created the Hawaii community development special fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter[.], including the costs of its administration."

     SECTION 4.  Section 206M-62, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-62[]]  Strategic development programs revolving fund.  (a)  There is established the strategic development programs revolving fund.  The following moneys shall be deposited into the strategic development programs revolving fund and shall not be considered part of the general fund:  all moneys appropriated by the legislature, received as repayments of loans, earned on investments, received pursuant to a venture agreement, received as royalties, received as premiums or fees charged by the development corporation, or otherwise received by the development corporation.

     (b)  Moneys in the strategic development programs revolving fund shall be used for the following purposes:

     (1)  To administer and fund the cost of operations of strategic development programs under part V of chapter 206M; and

     (2)  For any other purpose deemed necessary to carry out the purposes of part V of chapter 206M."

     SECTION 5.  Section 302A-1706, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The school facilities special fund shall be administered by the authority and used to fund any school development, planning, or construction project, including prekindergarten facilities, within the jurisdiction of the authority[.], including the cost of operations."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

Report Title:

Special Funds; Revolving Funds

Description:

Authorizes the use of moneys in certain special and revolving funds for operation and administration costs of the programs.

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

STAND. COM. REP. NO. 2817

Honolulu, Hawaii

RE:     S.B. No. 2598

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2598 entitled:

"A BILL FOR AN ACT RELATING TO NON-GENERAL FUNDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow moneys in the Hawaii agricultural development revolving fund, Hawaii community development special fund, strategic development programs revolving fund, and school facilities special fund to be used for administrative and operating costs related to the uses of those respective funds.

     Your Committee received comments on this measure from the Hawaii Community Development Authority, Agribusiness Development Corporation, and Tax Foundation of Hawaii.

     Your Committee finds that expanding the use of moneys in various funds to include funding for administrative and operating costs will help the State to address reduction in federal funding for these programs and to mitigate rapid fluctuation in federal policies.

     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 S.B. No. 2598 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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