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HB1154
HOUSE OF REPRESENTATIVES
H.B. NO.
1154
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO CENTRAL SERVICES ASSESSMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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Section 36-28,
Hawaii Revised Statutes, is amended to read as follows:
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"
�36-28
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Transfers from state highway fund for central
service expenses.
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(a)
�
Except as hereinafter provided, and
notwithstanding any other law to the contrary, there shall be deducted from
time to time by the director of finance, for the purpose of defraying the
prorated estimate of central service expenses of government in relation to the
state highway fund created by section 248-8, five per cent of all receipts and
deposits in the fund, after deducting therefrom any amounts pledged, charged,
or encumbered for the payment of bonds or interest thereon during the current
year, from which receipts or deposits no deduction of five per cent has been
previously made, [
which
]
or $5,000,000, whichever is less.
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(b)
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Beginning September 30, 2025, and every year thereafter, the director of
transportation shall propose to the governor an adjustment to the amount
transferred from the state highway fund by calculating a percentage based on
the Consumer Price Index for All Urban Consumers in the Honolulu area, or a
successor index, for the twelve months prior to September 1 of each year, less
food and energy, as calculated by the United States Bureau of Labor Statistics;
provided that, if in any year the percentage adjustment based on the Urban
Honolulu Consumer Price Index, or a successor index, would result in negative
percentage, the governor can approve a zero per cent adjustment or no
adjustment.
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Upon governor's approval of
the percentage adjustment, the director of finance shall apply the percentage
adjustment to the amount deducted from the state highway fund and deduct any
additional amounts.
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(c)
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The
deductions shall be transferred to the general fund of the State
and become general realizations of the State.
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The state department of transportation shall cooperate with the director
of finance in effecting these transfers."
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SECTION 2.
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Section 36-28.5, Hawaii Revised Statutes, is amended to read as follows:
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"[
[
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�36-28.5
[
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]
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Transfer from airport revenue fund.
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(a)
�
Any law to the contrary notwithstanding, there shall be deducted from
time to time by the director of finance for the purpose of defraying the
prorated estimate of central service expenses of government in relation to the
airport revenue fund five per cent of all receipts and deposits in the airport
revenue fund after deducting therefrom any amounts pledged, charged, or
encumbered for the payment of bonds or interest thereon during the current
year, from which receipts or deposits no deduction of five per cent has
previously been made[
.
]
, or $5,000,000, whichever is less.
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(b)
�
Beginning September 30, 2025, and every year thereafter, the director of
transportation shall propose to the governor an adjustment to the amount
transferred from the airport revenue fund by calculating a percentage based on
the Consumer Price Index for All Urban Consumers in the Honolulu area, or a
successor index, for the twelve months prior to September 1 of each year, less
food and energy, as calculated by the United States Bureau of Labor Statistics;
provided that, if in any year the percentage adjustment based on the Urban
Honolulu Consumer Price Index, or a successor index, would result in negative
percentage, the governor can approve a zero per cent adjustment or no
adjustment.
�
Upon the governor's approval
of the percentage adjustment, the director of finance shall apply the
percentage adjustment to the amount deducted from the airport revenue fund and
deduct any additional amounts.
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(c)
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The deductions shall be transferred to the general fund of the State and
become general realizations of the State.
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(d)
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For the purpose of this section, the term "any amounts pledged,
charged, or encumbered for the payment of bonds or interest thereon during the
current year" shall include:
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(1)
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Amounts
[
which
]
that
are so pledged, charged, or
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encumbered;
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(2)
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Amounts
otherwise required to be applied to the payment of principal of and interest on
revenue bonds or other revenue obligations; and
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(3)
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Amounts
required by law to be paid from the airport revenue fund into the general fund
of the State to reimburse the general fund for bond requirements for general
obligation bonds issued for airport purposes.
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(e)
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The director of transportation shall cooperate with the director of
finance in effecting the transfer."
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SECTION 3.
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Section 36-29, Hawaii Revised Statutes, is amended to read as follows:
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"
�36-29
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Transfer from harbor special fund.
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(a)
�
Any
other law to the contrary notwithstanding, there shall be deducted from time to
time by the director of finance for the purpose of defraying the prorated
estimate of central service expenses of government in relation to the harbor
special fund five per cent of all receipts and deposits in the harbor special
fund after deducting therefrom any amounts pledged, charged, or encumbered for
the payment of bonds or interest thereon during the current year, from which
receipts or deposits no deduction of five per cent has previously been made[
.
]
,
or $5,000,000, whichever is less.
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(b)
�
Beginning September 30, 2025, and every year thereafter, the director of
transportation shall propose to the governor an adjustment to the amount
transferred from the harbor special fund by calculating a percentage based on
the Consumer Price Index for All Urban Consumers in the Honolulu area, or a
successor index, for the twelve months prior to September 1 of each year, less
food and energy, as calculated by the United States Bureau of Labor Statistics;
provided that, if in any year the percentage adjustment based on the Urban
Honolulu Consumer Price Index, or a successor index, would result in negative
percentage, the governor can approve a zero per cent adjustment or no
adjustment.
�
Upon the governor's approval
of the percentage adjustment, the director of finance shall apply the
percentage adjustment to the amount deducted from the harbor special fund and
deduct any additional amounts.
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(c)
�
The deductions shall be transferred to the general fund of the State and
become general realizations of the State.
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(d)
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For the purposes of this section, the term "any amount pledged,
charged, or encumbered for the payment of bonds or interest thereon during the
current year" shall include:
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(1)
�
Amounts
[
which
]
that
are so pledged, charged, or encumbered;
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(2)
�
Amounts
otherwise required to be applied to the payment of principal of and interest on
revenue bonds or other revenue obligations;
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(3)
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Amounts
required to be paid into a separate special fund for the payment of principal
of and interest on revenue bonds or other revenue obligations payable from the
second separate special fund; and
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(4)
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Amounts
required by law to be paid from the harbor special fund into the general fund
of the State to reimburse the general fund for bond requirements for general
obligation bonds issued for harbor purposes.
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(e)
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The second separate special fund maintained by deposits from the harbor
special fund shall not be deemed to be a special fund within the meaning of
section 36-27 or section 36-30.
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(f)
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The director of transportation shall cooperate with the director of
finance in effecting the transfer."
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SECTION 4.
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If any portion of this Act or its application to any person, entity, or
circumstance is held to be invalid for any reason, then the legislature
declares that the remainder of the Act and each and every other provision
thereof shall not be affected thereby.
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SECTION 5.
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If manifest clerical, typographical, or other mechanical errors are
found in this Act, the governor may correct such errors.
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SECTION 6.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.
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SECTION 7.
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This Act, upon its approval, shall take
effect on July 1, 2025.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
Central Service Expenses; Transfers; Central Services
Assessment; Central Service Expenses of Government; State Highway Fund; Airport
Revenue Fund; Harbor Special Fund
Description:
Amends the transfer of funds for central service expenses
from the
State Highway Fund, Airport Revenue Fund, and Harbor Special Fund
by:
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(1) limiting the deduction to five
per cent of all receipts and deposits in the fund, or $5,000,000, whichever is
less, and (2) creating a process to deduct additional amounts based on the
Consumer Price Index.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.