Bill Text: HI SB2492 | 2020 | Regular Session | Amended
Bill Title: Relating To Management Of Financing Agreements.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2020-02-12 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2492 Detail]
Download: Hawaii-2020-SB2492-Amended.html
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THE SENATE |
S.B. NO. |
2492 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MANAGEMENT OF FINANCING AGREEMENTS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 37D-2, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) There is hereby established and authorized
the financing agreement program of the State.
Any agency desiring to acquire or improve projects through the financing
agreement program established and authorized by this chapter shall submit a
written request to the department providing any information that the department
shall require. Notwithstanding any other
law to the contrary, and except for the Hawaii health systems corporation and
its regional system boards, only with the approval by the attorney general as
to form and legality and upon the written request of one or more agencies may
the department enter into a financing agreement in accordance with this
chapter, and only with the approval by the attorney general as to form and
legality, and by the director as to fiscal responsibility, and upon the written request of an agency, the
agency may enter into a financing agreement in
accordance with this chapter, except that the department of education
may enter into a financing agreement in accordance with section 36-32 with the
concurrence of the director and with the approval of the attorney general as to
form and legality; and that the board of regents of the University of Hawaii
may enter into a financing agreement in accordance with this chapter without
the approval of the director and of the attorney general as to form and
legality if the principal amount of the financing agreement does not exceed
$3,000,000. A financing agreement may be
entered into by the department on behalf of one or more agencies, or by an
agency, at any time after the appropriation of available moneys (before
or after commencement or completion of any improvements or acquisitions to be
financed) and shall be upon terms and conditions the department finds to be
advantageous. In each case of a written
request by the judiciary to participate in the financing agreement program, the
department shall implement the request; provided that the related financing
agreement shall be upon terms and conditions the department finds to be
advantageous. Any financing agreement
entered into by the department without the approval, or by an agency without
the approvals required by this section shall be void and of no effect. A financing agreement entered into prior to
an appropriation of funds for a project that will incur a cumulative cost of more
than $5,000,000 shall be void and of no effect. A single financing agreement entered into by
the department may finance a single item or multiple items of property to be
used by multiple agencies or may finance a single item or multiple items of
property to be used by a single agency.
If the financing agreement is by the department, the department shall
bill any agency that benefits from property acquired with the proceeds of a
financing agreement for the agency's pro rata share of:
(1) The department's costs of administration of the financing agreement program; and
(2) The financing costs, including the principal and interest components of the financing agreement and insurance premiums,
on a monthly or other periodic basis, and may deposit payments received in connection with the billings with a trustee as security for the financing agreement. Any agency receiving such a bill shall be authorized and shall pay the amounts billed from available moneys.
If a financing agreement is by an agency, the agency shall deposit on a monthly or other periodic basis with the department, payments from available moneys with respect to the agency's financing costs, including the principal and interest components of the financing agreement and insurance premiums, which payments the department may deposit with a trustee as security for the financing agreement. The department may bill an agency for the department's costs of administering the agency's payments and the agency receiving such a bill shall be authorized to and shall pay the amounts billed from available moneys.
The $5,000,000 limit shall apply to the total amount of moneys used to finance each project including any expenses related to that project; provided that that projects shall not be artificially divided or parceled so as to evade the requirements of this section."
2. By amending subsection (a) to read:
"(a) There is hereby established
and authorized the financing agreement program of the State. Any agency desiring to acquire or improve projects
through the financing agreement program established and authorized by this
chapter shall submit a written request to the department providing any information
that the department shall require. Notwithstanding
any other law to the contrary, and except for the Hawaii health systems
corporation and its regional system boards, only with the approval by the
attorney general as to form and legality and upon the written request of one or
more agencies may the department enter into a financing agreement in accordance
with this chapter, and only with the approval by the attorney general as to
form and legality, and by the director as to fiscal responsibility, and upon the written request of an agency, the
agency may enter into a financing agreement in
accordance with this chapter, except that the board of regents of the
University of Hawaii may enter into a financing agreement in accordance with
this chapter without the approval of the director and of the attorney general
as to form and legality if the principal amount of the financing agreement does
not exceed $3,000,000. A financing
agreement may be entered into by the department on behalf of one or more agencies,
or by an agency, at any time after the appropriation of available moneys
(before or after commencement or completion of any improvements or acquisitions
to be financed) and shall be upon terms and conditions the department finds to
be advantageous. In each case of a
written request by the judiciary to participate in the financing agreement
program, the department shall implement the request; provided that the related
financing agreement shall be upon terms and conditions the department finds to
be advantageous. Any financing agreement
entered into by the department without the approval, or by an agency without
the approvals required by this section shall be void and of no effect. A financing agreement entered into prior to
an appropriation of funds for a project that will incur a cumulative cost of more
than $5,000,000 shall be void and of no effect. A single financing agreement entered into by
the department may finance a single item or multiple items of property to be
used by multiple agencies or may finance a single item or multiple items of
property to be used by a single agency.
If the financing agreement is by the department, the department shall
bill any agency that benefits from property acquired with the proceeds of a financing
agreement for the agency's pro rata share of:
(1) The department's costs of administration of the financing agreement program; and
(2) The financing costs, including the principal and interest components of the financing agreement and insurance premiums,
on a monthly or other periodic basis, and may deposit payments received in connection with the billings with a trustee as security for the financing agreement. Any agency receiving such a bill shall be authorized and shall pay the amounts billed from available moneys.
If a financing agreement is by an agency, the agency shall deposit on a monthly or other periodic basis with the department, payments from available moneys with respect to the agency's financing costs, including the principal and interest components of the financing agreement and insurance premiums, which payments the department may deposit with a trustee as security for the financing agreement. The department may bill an agency for the department's costs of administering the agency's payments and the agency receiving such a bill shall be authorized to and shall pay the amounts billed from available moneys.
The $5,000,000 limit shall apply to the total amount of moneys used to finance each project including any expenses related to that project; provided that that projects shall not be artificially divided or parceled so as to evade the requirements of this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval; provided that:
(1) The amendments made to section 37D-2(a), Hawaii Revised Statutes, in section 1(1) of this Act shall be repealed on June 30, 2023; and
(2) The amendments made to section 37D-2(a), Hawaii Revised Statutes, in section 1(2) of this Act shall take effect on July 1, 2023.
Report Title:
Financing Agreement; Cap
Description:
Requires appropriation of funds before departments may enter into financing agreements for a project with a cumulative cost exceeding five million dollars. Prohibits the parceling of projects to circumvent (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
