GOV. MS&NO. 3
EXECUTIVE CHAMBERS
HONOLULU
DAVID Y. GE
GOVERNOR
July 20, 2021
The Honorable Ronald D. Kouchi, The Honorable Scott K. Saiki,
President Speaker and Members of the
and Members of the Senate House of Representatives
Thirty-First State Legislature Thirty-First State Legislature
State Capitol, Room 409 State Capitol, Room 431
Honolulu, Hawai’i 96813 Honolulu, Hawaii 96813
Dear President Kouchi, Speaker Saiki, and Members of the Legislature:
This is to inform you that on July 20, 2021, pursuant to Section 16 of Article Ill of the
Constitution of the State of Hawaii, the following bill was found to have met my
objections and has been signed into law:
HB1299 HD1 SD1 CD1 AD1 RELATING TO NON-GENERAL FUNDS.
ACT 9 (Special Session 2021)
Sincerely,
DAVI D~i6~E
Governor, State of Hawai’i
Approved by the Governor ~~~ ~ A ~
JUL 2 0 2021 R I ~ I I”JR L ACT 9
HOUSE OF REPRESENTATIVES ~ 1299
THIRTY-FIRST LEGISLATURE, 2021 IN H.D. 1
STATEOFHAWAII ‘ ‘ S.D.1
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A BILL FOR AN ACT
RELATING TO NON-GENERAL FUNDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 PART I. INTRODUCTION
2 SECTION 1. The coronavirus disease 2019 pandemic has swept
3 across the nation and many parts of the world with unanticipated
4 force and brought with it enormous challenges for governments at
5 all levels. These challenges provide opportunities to
6 restructure.
7 The legislature finds that, fundamentally, non-general
8 funds must be reviewed and scrutinized just as much as general
9 funds to determine if resources are being deployed effectively
10 and efficiently.
11 The purpose of this Act is to trigger a full accounting of
12 various non—general funded program objectives, performance, and
13 results by repealing or abolishing those non—general funds and
14 transferring any unencumbered balances to the general fund.
15 PART II. DEPARTMENT OF AGRICULTURE
16 SECTION 2. Section 145—38, Hawaii Revised Statutes, is
17 amended to read as follows:
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I “[-[-]~145-38[.]-] Civil penalty. Any person who violates any
2 provision of this part or rule adopted pursuant to
3 section 145-39 shall be subject to a civil penalty in an amount
4 not to exceed $1,000 per violation. In determining the amount
5 of any civil penalty, the board of agriculture shall give due
6 consideration to:
7 (1) The history of the person’s previous violations;
8 (2) The seriousness of the violation; and
9 (3) The demonstrated good faith of the person charged in
10 attempting to achieve compliance with this part after
11 being notified of the violation.
12 The penalty shall be collected by the department, and the
13 proceeds shall be deposited into the [agricultural dcvclopmcnt
14 and food occurity opccial fund cotabliDhcd pur9uant to ~cction
15 141 10.] general fund.”
16 SECTION 3. Section 155—4, Hawaii Revised Statutes, is
17 amended to read as follows:
18 “~155-4 Powers and duties of the department. The
19 department of agriculture shall have the following powers:
20 (1) Employ a secretary, who may be exempt from chapter 76,
21 and other full—time and part—time employees, subject
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1 to chapter 76, as are necessary to effectuate the
2 purposes of this chapter[, oubjcct furthcr to thc
3 limitation of fundo in thc •~ricultural ba
4 fund];
5 (2) Designate agents throughout the State as may be
6 necessary for property appraisal, the consideration of
7 loan applications, and the supervision of farming
8 operations of borrowers. The agents may be
9 compensated for their services at rates the department
10 in its discretion may fix;
11 (3) Initiate and carry on a continuing research and
12 education program, utilizing and coordinating the
13 services and facilities of other government agencies
14 and private lenders to the maximum, to inform
15 qualified farmers concerning procedures for obtaining
16 loans and to inform private lenders concerning the
17 advantages of making loans to qualified farmers;
18 (4) Cooperate with private and federal government farm
19 loan sources to increase the amount of loan funds
20 available to qualified farmers in the State;
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1 (5) Assist individual qualified farmers in obtaining loans
2 from other sources. Insofar as available funds and
3 staff permit, counsel and assist individual farmers in
4 establishing and maintaining proper records to prove
5 their farming ability for loan purposes;
6 (6) Insure loans made to qualified farmers and food
7 manufacturers by private lenders under section 155—5;
8 (7) Participate in loans made to qualified farmers and
9 food manufacturers by private lenders under
10 section 155—6;
11 (8) Make direct loans to qualified farmers and food
12 manufacturers under section 155—8;
13 (9) Borrow money for loan purposes;
14 (10) Assign and sell mortgages;
15 (11) Hold title to, maintain, use, manage, operate, sell,
16 lease, or otherwise dispose of personal and real
17 property acquired by way of foreclosure, voluntary
18 surrender, or otherwise, to recover moneys loaned;
19 (12) Sue and be sued in the name of the “State of Hawaii”;
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1 (13) Exercise incidental powers as are deemed necessary or
2 requisite to fulfill its duty in carrying out the
3 purposes of this chapter;
4 (14) Delegate authority to its chairperson to. approve
5 loans, where the requested amount plus any principal
6 balance on existing loans to the applicant, does not
7 exceed $25,000 of state funds; and
8 (15) Adopt rules pursuant to chapter 91 necessary for the
9 purpose of this chapter.”
10 SECTION 4. Section 155-14, Hawaii Revised Statutes, is
11 amended by amending subsection (b) to read as follows:
12 “(b) [All intcrcot and fceo collcctcd by 1hr Hrnnrlmrnt
13 ohall bc dcpo9itcd in the agricultural loan rc~crvc fund to thc
14 cxtcnt nccdcd to carry on the operationo of the department
15 including paymcntz for con3ultative ocrviceo that would
16 ntrcngthen the agriculture loan prorTrr~m:
~~11~~~~~~’ ~n~: mon~m
— ~-uirn1ii~
—--—_z————i— to
17 thece needa chall be tranoferred to the agricultural loan
18 revolving fund at the diocretion of the department.] All
19 payments received on account of principal shall be credited to
20 the agricultural loan revolving fund.”
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1 SECTION 5. Section 155—31, Hawaii Revised Statutes, is
2 amended by deleting the definition of “water infrastructure
3 special fund”.
4 [“Watcr infraotructurc opccial fund” mca~ 4-1-~,-~ pccial
r r
5 L
— — -— -I -~ A II
]
6 SECTION 6. Section 155—33, Hawaii Revised Statutes, is
7 amended to read as follows:
8 “~155-33 Powers of the department. The department shall
9 have the following powers:
10 (1) Make loans and expend funds to finance the purchase or
11 installation of water infrastructure equipment for
12 dams, reservoirs, hydroelectric pumping, storm water
13 reclamation, ditch maintenance, spillways, wells,
14 water ducts, water distribution systems, and water
15 tanks;
16 [-(-2-)- Hold and invcot moncyc in thc watcr infraotructurc
17 —
—in n~rm~ttr’r~ h~ 1nw~
18 -(-~+] (2) Hire employees necessary to perform its duties;
19 [~4+1 (3) Enter into contracts for the service of
20 consultants for rendering professional and technical
21 assistance and advice, and any other contracts that
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1 are necessary and proper for the implementation of the
2 loan program;
3 [-f~-)-] (4) Enter into contracts for the administration of
4 the loan program, in accordance with chapter 103D;
5 [-(-6-)-] (5) Establish loan program guidelines to carry out
6 the purposes of this part;
7 [-(-7-)-] (6) Perform all functions necessary to effectuate the
8 purposes of this part;
9 [-(-8-)-] (7) Delegate authority to the chairperson of the
10 board of agriculture to approve loans where the
11 requested amount plus any principal balance on
12 existing loans to the applicant does not exceed
13 $25,000 of state funds; and
14 [+9+] (8) Adopt rules pursuant to chapter 91 necessary for
15 the purpose of this part.”
16 SECTION 7. Section 243—3.5, Hawaii Revised Statutes, is
17 amended by amending subsections (a) and (b) to read as follows:
18 “(a) In addition to any other taxes provided by law,
19 subject to the exemptions set forth in section 243—7, there is
20 hereby imposed a state environmental response, energy, and food
21 security tax on each barrel or fractionalpart of a barrel of
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1 petroleum product sold by a distributor to any retail dealer or
2 end user of petroleum product, other than a refiner. The tax
3 shall be $1.05 on each barrel or fractional part of a barrel of
4 petroleum product that is not aviation fuel; provided that of
5 the tax collected pursuant to this subsection:
6 (1) 5 cents of the tax on each barrel shall be deposited
7 into the environmental response revolving fund
8 established under section 128D—2;
9 (2) 5 cents of the tax on each barrel shall be deposited
10 into the energy security special fund established
11 under section 201—12.8; and
12 (3) 10 cents of the tax on each barrel shall be deposited
13 into the energy systems development special fund
14 established under section 304A-2169.1[; and
15 -(-4* 15 ccntz of thc tax on cach barrcl Dhall bc dcpooitcd
16 into thc agricultural dcvclopmcnt and food ~ccurity
17 zpccial fund cztabliohcd undcr zcction i’ll-iC].
18 The tax imposed by this subsection shall be paid by the
19 distributor of the petroleum product.
20 (b) In addition to subsection (a), the tax shall also be
21 imposed on each one million British thermal units of fossil fuel
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1 sold by a distributor to any retail dealer or end user, other
2 than a refiner, of fossil fuel. The tax shall be 19 cents on
3 each one million British thermal units of fossil fuel; provided
4 that of the tax collected pursuant to this subsection:
5 (1) 4.8 per cent of the tax on each one million British
6 thermal units shall be deposited into the
7 environmental response revolving fund established
8 under section 128D—2;
9 (2) 14.3 per cent of the tax on each one million British
10 thermal units shall be deposited into the energy
11 security special fund established under
12 section 201—12.8; and
13 (3) 9.5 per cent of the tax on each one million British
14 thermal units shall be deposited into the energy
15 systems development special fund established under
16 section 304A—2169.1[; and
17 14.3 pcr ccnt of thc tax on cach onc million British
18 thcrmal unito ohall bc dcpooitcd into thc agricultural
19 dcvclopmcnt and food occurity opccial fund cotabliohcd
20 iinc~rr ~1-~ nn 141—1 fll
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1 The tax imposed by this subsection shall be paid by the
2 distributor of the fossil fuel.”
3 SECTION 8. Section 141—10, Hawaii Revised Statutes, is
4 repealed.
5 [“~14l-lO Agricultural dcvclopmcni ana iooa socurity
6 special fund; est3blishment. (a) Thcrc io cotabli3hcd within
7 thc otatc trca~ury thc agricultural dcvclopmcnt and food
8 occurity Dpccial fund.
9 (b) Thc following moncyo ohall bc dcpoDitcd into thc
10 ~pccia1 fund:
11 .c portion o~ inc cnvironmcntal rc~poncc, cncrgy, a~
12 food occurity tax opccificd undcr ocction 243—3.5;
13 -(-2-)- Any appropriation by thc lcgi3laturc into thc ~pccial
14 fund;
15 -(-2-)- Any grant or donation madc to thc ~pccial fund; and
16 -(-4+ Any intcrczt carncd on thc balancc of thc opccial
17 fund.
18 (c) Subjcct to lcgiGlativc appropriation, moncyo in thc
19 opccial fund may bc cxpcndcd for thc following purpo3co:
20 -+1-)- Thc awarding