Bill Text: HI SB2537 | 2016 | Regular Session | Introduced
Bill Title: Deferred Maintenance Plan ($)
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2016-01-27 - Referred to GVO/JDL, WAM. [SB2537 Detail]
Download: Hawaii-2016-SB2537-Introduced.html
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THE SENATE |
S.B. NO. |
2537 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO DEFERRED MAINTENANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Section 1. The purpose of this Act is to address the deferred maintenance of state buildings, facilities, and other improvements.
More specifically, this Act requires the governor to prepare a deferred maintenance plan to gradually eliminate the deferred maintenance backlog of state-owned buildings, facilities, and other improvements.
The extent of the deferred maintenance backlog is substantial. According to data in the supplemental budget for fiscal years 2015–2016 and 2016–2017, the total deferred maintenance costs of the departments that responded to a department of budget and finance survey is at least $1,570,191,721. The total costs among all state departments, however, may be greater because some departments apparently did not respond to the survey, and the method of assessing deferred maintenance costs may not have been consistent across departments.
The legislature finds that this Act is necessary to:
(1) Preserve state-owned buildings, facilities, and other improvements for public use or benefit, now and into the future;
(2) Decrease future unfunded obligations of the State;
(3) Preserve public moneys by making near-term investments for maintenance instead of incurring much more expensive capital replacement or renewal costs in the future; and
(4) Promote transparency by publicly displaying information regarding the liabilities of the State.
The legislature intends that this Act shall apply to the judiciary by operation of section 601-2, Hawaii Revised Statutes.
SECTION 2. Chapter 37, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . DEFERRED MAINTENANCE PLAN
§37-A Definitions. For purposes of this part, the terms "deferred maintenance costs" and "state-owned building, facility, or other improvement" shall have the same meaning as in section 37-68(5).
§37-B Deferred maintenance plan; required content. The governor shall prepare a plan to gradually eliminate all deferred maintenance costs for state-owned buildings, facilities, and other improvements.
The plan shall include at least the following:
(1) A target date, which shall serve as the goal by which state executive agencies shall endeavor to eliminate all deferred maintenance costs of state-owned buildings, facilities, and other improvements;
(2) Alternative dates to the target date based on different scenarios and contingencies;
(3) Standards and criteria for calculating the deferred maintenance costs of state-owned buildings, facilities, and other improvements. The standards and criteria may differ for different types of state-owned buildings, facilities, and other improvements;
(4) A designation of the state executive agency responsible for calculating the deferred maintenance costs of state-owned buildings, facilities, and other improvements. The governor may designate one central state executive agency to make the calculations for all state-owned buildings, facilities, and other improvements, two or more state executive agencies with expertise in the matter, or each state executive agency that manages state-owned buildings, facilities, or other improvements;
(5) An estimate of the total amount of funds, by means of financing, necessary to eliminate the deferred maintenance costs of all state-owned buildings, facilities, and other improvements;
(6) A proposed schedule to serve as a guide for gradually eliminating all deferred maintenance costs by the target date under paragraph (1). The proposed schedule shall include proposed annual appropriations for deferred maintenance costs projects, by fiscal year and means of financing, until the target date; and
(7) Alternative schedules to the proposed schedule identified under paragraph (1). The alternative schedules shall be based on the alternatives dates identified under paragraph (2).
§37-C Annual updates. (a) The governor shall update the plan annually.
(b) Each update also shall include a progress report on the elimination of the deferred maintenance costs.
§37-D Submittal of initial plan and annual updates. The governor shall submit to the legislature:
(1) The initial plan with the executive budget for the fiscal biennium that ends on June 30, 2021; and
(2) The annual updates with each subsequent supplemental or executive budget, as applicable."
SECTION 3. Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:
"§37-E Extended lapse date for appropriation for deferred maintenance costs. An executive budget act or supplemental budget act may provide that the unexpended or unencumbered balance of an appropriation for a deferred maintenance cost project for a fiscal year shall not lapse at the end of that fiscal year, but shall lapse on a subsequent date that does not violate article VII, section 11, of the state constitution."
SECTION 4. Section 37-41, Hawaii Revised Statutes, is amended to read as follows:
"§37-41 Appropriations to revert to state treasury; exceptions. Unless otherwise provided by section 37-41.5, section 37-E, or any other law, every appropriation or part thereof of any kind made subject to sections 37-31 to 37-40, remaining unexpended and unencumbered at the close of any fiscal year shall lapse and be returned to the general fund or other fund from which the appropriation was made in the manner prescribed in section 40-66."
SECTION 5. Section 37-68, Hawaii Revised Statutes, is amended to read as follows:
"§37-68 Responsibilities of agencies. Under rules as may be prescribed by the director of finance with the approval of the governor:
(1) Each agency assigned the task of developing programs and preparing program and financial plans, budgetary requests, and program performance reports shall develop the programs and prepare the plans, requests, and reports and submit the same to the director of finance at times, on forms, and in a manner as the director may prescribe. For informational purposes, the University of Hawaii shall submit its program and financial plans, budgetary requests, and program performance reports to the legislature at the same time the university submits them to the director of finance. Where new programs are being proposed, each agency shall demonstrate that the program:
(A) Is an appropriate function of state government; and, as applicable
(B) Can be implemented by the public sector as cost-effectively as the private sector while meeting the same plans, goals, objectives, standards, measures of effectiveness, wage, salary, conditions of employment, and employee benefit programs of the State;
(2) Each agency administering state programs and each agency responsible for the formulation of programs and the preparation of program and financial plans, budgetary requests, and program performance reports, shall furnish the department of budget and finance all documents and information as the department may from time to time require. Each agency shall make available all documents and information, as may be requested, to the legislature and any member or committee of either house of the legislature;
(3) The director of finance or any employee of the department of budget and finance, when duly authorized, for the purpose of securing information, shall have access to and may examine any books, documents, papers, or records of any agency;
(4) Each agency submitting a capital improvement project proposal shall furnish the department of budget and finance with an estimate of operational costs for the proposed capital improvement project and all documents that support the estimate of operational costs. Each agency shall make available all documents and related information, as may be requested, to the legislature and any member or committee of either house.
The director of finance shall provide a summary of this information in the multi-year program and financial plan and budget submitted to the legislature before the regular session of each odd-numbered year and the supplemental budget submitted to the legislature before the regular session of each even-numbered year; and
(5) Each agency responsible for operating or maintaining a state-owned building, facility, or other improvement shall furnish the department of budget and finance with an estimate of the deferred maintenance costs for the building, facility, or other improvement.
The director of finance shall provide a summary of this information in the multi-year program and financial plan and budget submitted to the legislature before the regular session of each odd-numbered year and the supplemental budget submitted to the legislature before the regular session of each even-numbered year.
For the purposes of this paragraph[,
"deferred]:
"Deferred maintenance
costs" means the costs to catch up on the repair and maintenance of the
state-owned building, facility, or other improvement that has been delayed past
the ordinarily scheduled repair and maintenance cycle. The [department of
budget and finance] governor or a state executive agency designated by
the governor may further refine this definition in [its] instructions
to the agencies furnishing the information[.]; and
"State-owned building, facility, or other improvement" means a building, facility, or other improvement owned by a state executive agency; provided that a building, facility, or other improvement shall not be deemed "owned" by a state executive agency if leased by the agency to a person."
SECTION 6. Section 601-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The chief justice shall be the administrative head of the judiciary. The chief justice shall make a report to the legislature, at each regular session thereof, of the business of the judiciary and of the administration of justice throughout the State. The chief justice shall present to the legislature a unified budget, six- year program and financial plan, and variance report for all of the programs of the judiciary. The chief justice also shall submit to the legislature a deferred maintenance plan for judiciary-owned buildings, facilities, and other improvements and annual updates that substantially comply with chapter 37, part __; provided that, with regard to the judiciary's deferred maintenance plan, the chief justice shall perform the duties otherwise delegated to the governor under chapter 37, part . The chief justice shall direct the administration of the judiciary, with responsibility for the efficient operation of all of the courts and for the expeditious dispatch of all judicial business."
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2016-2017 for the preparation of the deferred maintenance plan required under section 2 of this Act.
The sum appropriated shall be expended by the office of the governor for the purposes of this Act.
SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000 or so much thereof as may be necessary for fiscal year 2016-2017 for the preparation of the deferred maintenance plan required under section 601-2(a), Hawaii Revised Statutes.
The sum appropriated shall be expended by the judiciary for the purposes of this Act.
SECTION 9. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 2016.
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INTRODUCED BY: |
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Report Title:
Deferred Maintenance Plan
Description:
Requires the governor to prepare a deferred maintenance plan to gradually eliminate the deferred maintenance costs of all state-owned buildings, facilities, and other improvements. Requires the initial plan to be submitted to the legislature with the executive budget for the fiscal biennium 2019-2021. Requires the governor to prepare annual updates. Imposes the same requirements on the chief justice for judiciary-owned buildings, facilities, and other improvements. Appropriates $100,000 to the office of the governor. Appropriates $50,000 to the judiciary.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
