Bills

SB 326: Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Session Year: 2025-2026
House: Senate
Latest Version Date: 2025-04-24

Current Status:

In Progress

(2025-06-25: Act 223, on 06/25/2025 (Gov. Msg. No. 1325).)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

What does this bill do?

The bill requires the Legislature, when creating or reviewing state revolving funds, to make sure each fund can sustain itself financially. Lawmakers must require either annual projections showing the fund will operate without general fund money or a schedule of expected collections of outstanding payments that will provide the money to start or maintain the fund.

Version:

Requires the Legislature, in establishing or reviewing a revolving fund, to ensure the revolving fund is financially self-sustainable by either annual projections that show that the revolving fund will be sustainable without appropriations of general funds or a schedule of projected collections of outstanding payments to the revolving fund. (CD1)

Version:

SB326 CD1

THE SENATE	S.B. NO.	326
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII		H.D. 1
		C.D. 1

A BILL FOR AN ACT

RELATING TO REVOLVING FUNDS.

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

SECTION 1. Section 37-52.4, Hawaii Revised Statutes, is amended to read as follows:

"§37-52.4 Criteria for the establishment and continuance of revolving funds. Revolving funds shall only be established pursuant to an act of the legislature. The legislature, in establishing or reviewing a revolving fund to determine whether it should be continued, shall ensure that the revolving fund:

(1) Serves a need, as demonstrated by:

(A) The purpose of the program to be supported by the fund;

(B) The scope of the program, including financial information on fees to be charged, sources of projected revenue, and costs; and

(2) Reflects a clear nexus between the benefits sought and charges made upon the program users or beneficiaries or a clear link between the program and the sources of revenue, as opposed to serving primarily as a means to provide the program or users with an automatic means of support that is removed from the normal budget and appropriation process;

(3) Provides an appropriate means of financing for the program or activity that is used only when essential to the successful operation of the program or activity; and

(4) Demonstrates the capacity to be financially self‑sustaining[.] by:

(A) Annual projections that show that the revolving fund will be sustainable without appropriations of general funds into the revolving fund; or

(B) A schedule of projected collections of outstanding payments to the revolving fund that will capitalize the revolving fund."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

Report Title:

Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Description:

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

SB326 HD1

THE SENATE	S.B. NO.	326
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO REVOLVING FUNDS.

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

SECTION 1. Section 37-52.4, Hawaii Revised Statutes, is amended to read as follows:

(1) Serves a need, as demonstrated by:

(A) The purpose of the program to be supported by the fund;

(B) The scope of the program, including financial information on fees to be charged, sources of projected revenue, and costs; and

(3) Provides an appropriate means of financing for the program or activity that is used only when essential to the successful operation of the program or activity; and

(4) Demonstrates the capacity to be financially self‑sustaining[.] by:

(A) Annual projections that show that the revolving fund will be sustainable without appropriations of general funds into the revolving fund; or

(B) A schedule of projected collections of outstanding payments to the revolving fund that will capitalize the revolving fund."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 3000.

Report Title:

Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Description:

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

SB326 SD1

THE SENATE	S.B. NO.	326
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO REVOLVING FUNDS.

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

SECTION 1. Section 37-52.4, Hawaii Revised Statutes, is amended to read as follows:

(1) Serves a need, as demonstrated by:

(A) The purpose of the program to be supported by the fund;

(B) The scope of the program, including financial information on fees to be charged, sources of projected revenue, and costs; and

(3) Provides an appropriate means of financing for the program or activity that is used only when essential to the successful operation of the program or activity; and

(4) Demonstrates the capacity to be financially self‑sustaining[.] by:

(A) Annual projections that show that the revolving fund will be sustainable without appropriations of general funds into the revolving fund; or

(B) A schedule of projected collections of outstanding payments to the revolving fund that will capitalize the revolving fund."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.

Report Title:

Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Description:

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

SB326

THE SENATE	S.B. NO.	326
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to revolving funds.

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

SECTION 1. Section 37-52.4, Hawaii Revised Statutes, is amended to read as follows:

(1) Serves a need, as demonstrated by:

(A) The purpose of the program to be supported by the fund;

(B) The scope of the program, including financial information on fees to be charged, sources of projected revenue, and costs; and

(3) Provides an appropriate means of financing for the program or activity that is used only when essential to the successful operation of the program or activity; and

(4) Demonstrates the capacity to be financially self‑sustaining[.] by:

(A) Annual projections that show that the revolving fund will be sustainable without appropriations of general funds into the revolving fund; or

(B) A schedule of projected collections of outstanding payments to the revolving fund that will capitalize the revolving fund."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Description:

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

Date	Status
Jun 25, 2025	Act 223, on 06/25/2025 (Gov. Msg. No. 1325).
Jun 25, 2025	Act 223, 06/25/2025 (Gov. Msg. No. 1325).
May 2, 2025	Enrolled to Governor.
May 2, 2025	Received notice of passage on Final Reading in House (Hse. Com. No. 821).
May 1, 2025	Received notice of Final Reading (Sen. Com. No. 888).
Apr 30, 2025	Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick excused (2).
Apr 30, 2025	Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
Apr 24, 2025	Forty-eight (48) hours notice Wednesday, 04-30-25.
Apr 24, 2025	Reported from Conference Committee (Conf Com. Rep. No. 16) as amended in (CD 1).
Apr 24, 2025	48 Hrs. Notice (as amended CD 1) 04-30-25.
Apr 24, 2025	Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 16).
Apr 23, 2025	The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Yamashita, Takenouchi, Alcos; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
Apr 23, 2025	The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Hashimoto, Kim, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
Apr 22, 2025	Bill scheduled for Conference Committee Meeting on Wednesday, 04-23-25 10:30AM in conference room 309.
Apr 15, 2025	Received notice of Senate conferees (Sen. Com. No. 789).
Apr 15, 2025	Senate Conferees Appointed: Hashimoto Chair; Kim, Fevella.
Apr 15, 2025	Received notice of appointment of House conferees (Hse. Com. No. 731).
Apr 14, 2025	House Conferees Appointed: Yamashita Chair; Takenouchi, Alcos.
Apr 10, 2025	Received notice of disagreement (Sen. Com. No. 779).
Apr 10, 2025	Senate disagrees with House amendments.
Apr 10, 2025	Received from House (Hse. Com. No. 639).
Apr 8, 2025	Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Marten excused (2). Transmitted to Senate.
Apr 4, 2025	Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kapela excused (2).
Apr 4, 2025	Reported from FIN (Stand. Com. Rep. No. 1942) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading.
Mar 27, 2025	The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 3 Excused: Representative(s) Hussey, Alcos, Ward.
Mar 24, 2025	Bill scheduled to be heard by FIN on Thursday, 03-27-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
Mar 4, 2025	Referred to FIN, referral sheet 18
Feb 28, 2025	Pass First Reading
Feb 27, 2025	Received from Senate (Sen. Com. No. 22) in amended form (SD 1).
Feb 27, 2025	Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none). Transmitted to House.
Feb 18, 2025	48 Hrs. Notice 02-27-25.
Feb 18, 2025	Report adopted; Passed Second Reading, as amended (SD 1).
Feb 18, 2025	Reported from WAM (Stand. Com. Rep. No. 692) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading.
Feb 12, 2025	The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
Feb 7, 2025	The committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.
Jan 21, 2025	Referred to WAM.
Jan 15, 2025	Introduced and passed First Reading.
Jan 14, 2025	Pending Introduction.

Date	Description	Location	Votes
Apr 30, 2025	Final Reading	House Floor	48 0 2 Passed
Apr 30, 2025	Final Reading	Senate Floor	25 0 0 Passed
Apr 8, 2025	Third Reading	House Floor	48 0 2 Passed
Mar 27, 2025	The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Finance	13 0 3 Passed
Feb 27, 2025	Third Reading	Senate Floor	25 0 0 Passed
Feb 12, 2025	The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Ways and Means	13 0 0 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
Department of Budget and Finance	** Support

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

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CONFERENCE COMMITTEE REP. NO. 16

Honolulu, Hawaii

, 2025

RE: S.B. No. 326

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 326, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REVOLVING FUNDS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to ensure that state revolving funds meet the self-sustainability requirement.

Specifically, this measure requires the Legislature, when establishing or reviewing a revolving fund, to ensure that the revolving fund demonstrates the capacity to be financially self‑sustainable by either:

(1) Annual projections that show that the revolving fund will be sustainable without appropriations from the general fund; or

(2) A schedule of projected collections of outstanding payments to the revolving fund.

Your Committee on Conference finds that section 37-52.4, Hawaii Revised Statutes, sets forth the requirements for state revolving funds, one of which is self-sustainability. Your Committee on Conference further finds that specifying the methods by which a fund demonstrates a capacity for self-sustainability will facilitate compliance with the statutory requirements for a revolving fund and will promote fiscal responsibility.

Your Committee on Conference has amended this measure by changing its effective date to upon the measure's approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 326, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 326, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

KYLE T. YAMASHITA

Chair

____________________________

TROY N. HASHIMOTO

Chair

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STAND. COM. REP. NO. 1942

Honolulu, Hawaii

, 2025

RE: S.B. No. 326

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred S.B. No. 326, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REVOLVING FUNDS,"

begs leave to report as follows:

The purpose of this measure is to provide specific ways the Legislature may demonstrate the capacity of a revolving fund to be financially self-sustaining when it determines whether the fund should be established or continued.

Your Committee received testimony in support of this measure from the Department of Budget and Finance. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that existing law requires the Legislature, in establishing or reviewing a revolving fund to determine whether it should be continued, to ensure that the revolving fund serves a need; reflects a clear connection between benefits or programs funded and sources of revenue; provides an appropriate means of financing; and demonstrates the capacity to be financially self-sustaining. By adding specificity to the ways the Legislature may demonstrate the capacity of a revolving fund to be financially self-sustaining, this measure encourages fiscal prudence and responsibility.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 326, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 326, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair

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STAND. COM. REP. NO. 692

Honolulu, Hawaii

RE: S.B. No. 326

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 326 entitled:

"A BILL FOR AN ACT RELATING TO REVOLVING FUNDS,"

begs leave to report as follows:

The purpose and intent of this measure is to ensure the sustainability of state revolving funds.

Specifically, this measure requires the Legislature, when establishing or reviewing a revolving fund, to ensure that the revolving fund is financially self-sustainable by either:

(1) Annual projections that show that the revolving fund will be sustainable without appropriations of general funds; or

(2) A schedule of projected collections of outstanding payments to the revolving fund.

Your Committee received testimony in support of this measure from the Department of Budget and Finance.

Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that section 37-52.4, Hawaii Revised Statutes, requires the Legislature, when establishing or reviewing a revolving fund, to ensure the revolving fund demonstrates the capacity to be financially self-sustaining. Your Committee further finds that this measure establishes specific criteria by which a revolving fund could demonstrate this capacity.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 326, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 326, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

DONOVAN M. DELA CRUZ, Chair

Date	Testimony PDF
Mar 27, 2025	SB326_SD1_TESTIMONY_FIN_03-27-25_.PDF
Feb 11, 2025	SB326_TESTIMONY_WAM_02-12-25_.PDF

Discussed in Hearing

48SEC

Authors shown for version:
SB326_CD1 (4/24/2025)

SB 326: Budget; Revolving Funds; Demonstration of Financial Self‑Sustainability

Current Status:

What does this bill do?

Conference Committee

House Standing Committee on Finance

Senate Standing Committee on Ways and Means