Bill Text: HI HB1296 | 2021 | Regular Session | Amended


Bill Title: Relating To State Funds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2021-07-06 - Vetoed on 07/06/2021 - Returned from the Governor without approval (Gov. Msg. No. 1291). [HB1296 Detail]

Download: Hawaii-2021-HB1296-Amended.html

HOUSE OF REPRESENTATIVES

H.B. NO.

1296

THIRTY-FIRST LEGISLATURE, 2021

H.D. 1

STATE OF HAWAII

S.D. 2

 

C.D. 1

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STATE FUNDS.

 

 

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

 


PART I

     SECTION 1.  The legislature finds that the State is suffering significant economic hardship due to the COVID-19 pandemic.  While the legislature supports tobacco prevention and cessation, given the extraordinary economic conditions that the State is facing, all resources must be examined to protect the overall health, safety, and welfare of the public.

     The purpose of this part is to generate additional general funds to ensure the delivery of critical services statewide by suspending the distribution of tobacco settlement moneys to the Hawaii tobacco prevention and control trust fund and maximizing other state resources.

     SECTION 2.  Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The fund shall be used for the purpose of receiving, allocating, and appropriating the tobacco settlement moneys as follows:

     (1)  Fifteen per cent shall be appropriated into the emergency and budget reserve fund under section 328L‑3;

    [(2)  Twelve and one-half per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5;

     (3)  Twenty-six] (2)  Until July 1, 2033, twenty-six per cent shall be appropriated into the university revenue-undertakings fund created in section 304A‑2167.5, to be applied to the payment of the principal of and interest on, and to generate required coverage, if any, for, revenue bonds issued by the board of regents of the University of Hawaii to finance the cost of construction of a university health and wellness center, including a new medical school facility, to be situated on the island of Oahu; and

    [(4)] (3)  Any remaining amounts in excess of $4,300,000 shall be deposited to the credit of the state general fund;

in the succeeding fiscal year."

     SECTION 3.  Section 328L-6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§328L-6[]]  Tobacco prevention and control advisory board.  (a)  There is established a tobacco prevention and control advisory board under the department for administrative purposes.

     (b)  The tobacco prevention and control advisory board shall consist of members who are involved in tobacco prevention and control.  Membership of the board shall be as follows:

     (1)  One member of the governor's staff, appointed by the governor;

     (2)  One member to be appointed by the governor from a list of two names submitted by the president of the senate;

     (3)  One member to be appointed by the governor from a list of two names submitted by the speaker of the house of representatives;

     (4)  The director or the director's designee;

     (5)  The superintendent of education or the superintendent's designee;

     (6)  Three members having demonstrated interest in and having backgrounds beneficial to controlling and preventing the use of tobacco, appointed by the director of health; and

     (7)  Three members representing populations at risk for tobacco use, appointed by the governor.

     (c)  Members shall:

     (1)  Be appointed or designated, as applicable, without regard to section 26-34;

     (2)  Serve without compensation; and

     (3)  Serve for a term of three years.

     (d)  The tobacco prevention and control advisory board, in collaboration with the department, shall develop a strategic plan for tobacco prevention and control, including:

     (1)  Developing and implementing effective and cost efficient programs, including health promotion and disease prevention;

     (2)  Developing adequate standards and benchmarks by which measures of program success under paragraph (1) of this subsection may be appropriately evaluated; and

     (3)  Assessing the effectiveness of programs engaged in health promotion and disease prevention.

     The strategic plan shall be in writing and shall be a public document.

     [(e)  The tobacco prevention and control advisory board shall advise the on the administration of the Hawaii tobacco prevention and control trust fund.]"

     SECTION 4.  Section 328L-5, Hawaii Revised Statutes, is repealed.

     ["§328L-5  Hawaii tobacco prevention and control trust fund.  (a)  There is established the Hawaii tobacco prevention and control trust fund as a separate fund of a nonprofit entity having a board of directors and qualifying under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, into which shall be deposited moneys received as provided under section 328L-2(b)(2).  The director of health with the concurrence of the governor, shall select, in accordance with law, the entity based upon the proven record of accomplishment of the entity in administering a similar trust fund.

     (b)  Notwithstanding that the Hawaii tobacco prevention and control trust fund is established within a private entity, the department of budget and finance shall have oversight authority over the fund and may make periodic financial audits of the fund; provided that the director of finance may contract with a certified public accountancy firm for this purpose.  The director of health with the concurrence of the governor in their sole discretion may rescind the selection of the entity.  If the selection of the entity [is] rescinded, moneys in the trust fund shall revert back to the State and shall be deemed to be trust moneys.

     (c)  The entity selected under subsection (a), for each fiscal year, may expend up to fifty per cent of the total market value of the Hawaii tobacco prevention and control trust fund on the preceding June 30, for tobacco prevention and control, including but not limited to, reducing cigarette smoking and tobacco use among youth and adults through education and enforcement activities, and controlling and preventing chronic diseases where tobacco is a risk factor.

     (d)  The Hawaii tobacco prevention and control trust fund may receive appropriations, contributions, grants, endowments, or gifts in cash or otherwise from any source, including the State, corporations or other businesses, foundations, government, individuals, and other interested parties; provided that any appropriations made by the State shall not supplant or diminish the funding of existing tobacco prevention and control programs or any health related programs funded in whole or in part by the State.

     (e)  The assets of the Hawaii tobacco prevention and control trust fund shall consist of:

     (1)  Moneys appropriated under section 328L‑2(b)(2);

     (2)  Moneys appropriated to the Hawaii tobacco prevention and control trust fund by the state, county, or federal government;

     (3)  Private contributions of cash or property; and

     (4)  Income and capital gains earned by the trust fund.

     (f)  The aggregate principal sum deposited in the Hawaii tobacco prevention and control trust fund shall be invested by the entity selected under subsection (a) in a manner intended to maximize the rate of return on investment of the trust fund consistent with the objective of preserving the trust fund's principal.

     (g)  If the entity selected under subsection (a) is dissolved, the director of health, with the concurrence of the governor, shall select a successor entity.  If the Hawaii tobacco prevention and control trust fund is terminated, the moneys remaining in the trust fund shall revert back to the State and shall be deemed to be trust moneys.

     (h)  The administration of the Hawaii tobacco prevention and control trust fund shall be advised by the tobacco prevention and control advisory board created under section 328L-6."]

     SECTION 5.  Any contract relating to the management of the Hawaii tobacco prevention and control trust fund moneys shall not extend beyond June 30, 2025.

     SECTION 6.  Any unencumbered balances remaining in the Hawaii tobacco prevention and control trust fund as of June 30, 2025, shall lapse to the credit of the general fund on June 30, 2025.

     SECTION 7.  The department of health shall provide an annual report on the moneys expended from the Hawaii tobacco prevention and control trust fund to the legislature no later than twenty days prior to the convening of the regular sessions of 2022, 2023, 2024, 2025, and 2026.  The report shall identify each recipient of moneys from the fund, the amount of moneys received by each recipient, and the purpose of the expenditure.

PART II

     SECTION 8.  This part is recommended by the governor for immediate passage in accordance with article VII, section 9, of the Constitution of the State of Hawaii.

     SECTION 9.  There is appropriated out of the general revenues of the State of Hawaii the sum of $4,780,880 or so much thereof as may be necessary for fiscal year 2020-2021 for payroll and other current expenses to address the budget shortfall for the state comprehensive emergency medical services system.

     The sum appropriated shall be expended by the department of health for the purposes of this part.

PART III

     SECTION 10.  There is appropriated out of the general revenues of the State of Hawaii the sum of $577,466 or so much thereof as may be necessary for fiscal year 2021-2022 and the same sum or so much thereof as may be necessary for fiscal year 2022-2023 for the establishment of two full-time equivalent (2.00 FTE) permanent positions and five full-time equivalent (5.00 FTE) temporary positions for the office of the governor.

     The sums appropriated shall be expended by the office of the governor for the purposes of this part.

PART IV

     SECTION 11.  Chapter 36, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§36-     Non-general fund positions; reimbursement.  Each department, including the University of Hawaii and the department of education, shall reimburse the State for contributions made by the State pursuant to sections 87A-39 and 88-125, for fringe benefits of employees whose positions are funded by a special fund rather than by the general fund."

     SECTION 12.  Section 245-15, Hawaii Revised Statutes, is amended to read as follows:

     "§245-15  Disposition of revenues.  (a)  All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that, of the moneys collected under the tax imposed pursuant to:

     (1)  Section 245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

     (2)  Section 245-3(a)(6), after September 30, 2007, and prior to October 1, 2008:

          (A)  1.5 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

          (B)  0.25 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5; and

          (C)  0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234;

     (3)  Section 245-3(a)(7), after September 30, 2008, and prior to July 1, 2009:

          (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

          (B)  0.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

          (C)  0.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

          (D)  0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234;

     (4)  Section 245-3(a)(8), after June 30, 2009, and prior to July 1, 2013:

          (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

          (B)  0.75 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

          (C)  0.75 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

          (D)  0.5 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

     (5)  Section 245-3(a)(11), after June 30, 2013, and prior to July 1, 2015:

          (A)  2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

          (B)  1.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

          (C)  1.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321‑1.65; and

          (D)  1.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321‑234; and

     (6)  Section 245-3(a)(11), after June 30, 2015, and [thereafter]:

          (A)  Prior to July 1, 2041, 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for [research and operating expenses and for] capital expenditures;

          (B)  Thereafter, 1.125 cents per cigarette, but not more than $7,400,000 in a fiscal year, shall be deposited to the credit of the trauma system special fund established pursuant to section 321‑22.5;

          (C)  Thereafter, 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

          (D)  Prior to July 1, 2021, 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234.

     (b)  The department shall provide an annual accounting of these dispositions to the legislature."

PART V

     SECTION 13.  The legislature finds that mass shootings and mass casualty events are a public health crisis.  The National Governors Association has stated that efforts to prevent targeted violence map on to other prevention and mitigation efforts, specifically public health models.  The legislature notes that many violence prevention strategies, such as assessment, risk identification, and mitigation, are already included as an important part of new physician training.  These current practices fit well with the objectives and strategies of threat assessment teams, while trained mental health professionals, such as psychiatrists and psychologists, provide crucial insights and skills that are invaluable to interdisciplinary threat assessment.

     The legislature further finds that the Hawaii state fusion center, in partnership with other agencies, has already laid a foundation for a threat assessment program.  Enabling a multidisciplinary threat assessment team consisting of individuals with diverse training and experience can help prevent violence and find solutions to manage threats.

     The purpose of this part is to establish a threat assessment team program within the Hawaii state fusion center of the office of homeland security to train, establish, and operate threat assessment teams.

     SECTION 14.  Chapter 128A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§128A-     Threat assessment team program; established.  (a)  There is established within the Hawaii state fusion center of the office of homeland security a threat assessment team program for the Hawaii state fusion center to train, establish, and operate threat assessment teams.

     (b)  The threat assessment team program and facility shall be located at the First Responders Technology Park, TMK 9‑5‑002:057, at an appropriate time."

PART VI

     SECTION 15.  There is appropriated out of the general revenues of the State of Hawaii the sum of $132,972 or so much thereof as may be necessary for fiscal year 2021-2022 and the same sum or so much thereof as may be necessary for fiscal year 2022-2023 for one full-time equivalent (1.00 FTE) permanent administrative assistant position in the department of human resources development.

     The sums appropriated shall be expended by the department of human resources development for the purposes of this part.

PART VII

     SECTION 16.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 17.  This Act shall take effect on July 1, 2021; provided that sections 3 and 4 shall take effect on June 30, 2025.



 

Report Title:

Hawaii Tobacco Settlement Special Fund; Hawaii Tobacco Prevention and Control Trust Fund; Repeal; Emergency Appropriation; Governor; Cigarette Taxes; UH; Threat Assessment Team Program; DHRD; Positions; Appropriation

 

Description:

Part I:  Repeals the Hawaii tobacco prevention and control trust fund and transfers unencumbered balances to the general fund on 6/30/2025.  Specifies that Hawaii tobacco settlement special fund moneys shall only be deposited into the university revenue-undertakings fund until 7/1/2033.  Prohibits any contract for the management of Hawaii tobacco prevention and control trust fund moneys from extending beyond 6/30/2025.  Imposes a $4,300,000 cap on Hawaii tobacco settlement special fund.  Requires report to the legislature twenty days prior to the convening of the regular sessions of 2022, 2023, 2024, 2025, and 2026 on expenditures from Hawaii tobacco prevention and control trust fund moneys.  Part II:  Makes an emergency appropriation to provide funds for the state comprehensive emergency medical services system for expenses related to collective bargaining and other current expenses.  Part III:  Establishes and funds two permanent and five temporary full-time equivalent positions in the office of the governor.  Part IV:  Requires all departments and the University of Hawaii to reimburse fringe benefit costs for non-general funded positions.  Specifies that the cigarette tax revenues deposited to the credit of the cancer research special fund shall only be used for capital expenditures and only until 7/1/2041.  Ceases deposits of cigarette tax revenues into the emergency medical services special fund on 7/1/2021.  Part V:  Establishes a threat assessment team program.  Part VI:  Funds one full-time equivalent position in the department of human resources development.  (CD1)

 

 

 

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

 

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