Bill Text: HI SB1189 | 2015 | Regular Session | Amended

Hawaii Senate Bill 1189 (Prior Session Legislation)

Bill Title: Special Funds; Revolving Funds; Department of Business, Economic Development, and Tourism; High Technology Special Fund

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced - Dead) 2015-02-20 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB1189 Detail]

Download: Hawaii-2015-SB1189-Amended.html

THE SENATE	S.B. NO.	1189
TWENTY-EIGHTH LEGISLATURE, 2015		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

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

SECTION 1. The legislature finds that among the many special and revolving funds currently administered by the department of business, economic development, and tourism, three funds have become either dormant or unnecessary. The legislature further finds that the remaining balances in these funds would be more effectively used if transferred to the high technology special fund.

The purpose of this Act is to repeal the following funds and transfer the unencumbered balances into the high technology special fund:

(1) State disaster revolving loan fund;

(2) Hawaii community-based economic development revolving fund; and

(3) Fee simple residential revolving fund.

SECTION 2. Section 210D-8, Hawaii Revised Statutes, is amended to read as follows:

"§210D-8 Powers and duties. The department shall have the necessary powers to carry out the purposes of this chapter, including the following:

(1) With advice from the council, prescribe the qualifications for eligibility of applicants for loans and grants;

(2) With advice from the council, establish preferences and priorities in determining eligibility for financial assistance;

(3) Establish the conditions, consistent with the purpose of this chapter, for the awarding of financial assistance;

(4) Provide for inspection at reasonable hours of facilities, books, and records of a community-based organization that has applied for or has been awarded financial assistance and require the submission of progress and final reports;

(5) Provide loans and grants for community-based economic development activities and community-based enterprises for purposes consistent with this chapter;

(6) Determine the necessity for and the extent of security required in a loan;

(7) Prescribe and provide appropriate management counseling and monitoring of business activities;

[~~(8)~~ ~~Administer the Hawaii community-based economic development revolving fund;~~

~~(9)~~] (8) Include in its budget for subsequent fiscal periods amounts necessary to effectuate the purposes of this chapter;

[~~(10)~~] (9) Participate in loans made to qualified persons by private lenders;

[~~(11)~~] (10) Establish interest rates chargeable by the State for direct and participation loans; and

[~~(12)~~] (11) Adopt rules pursuant to chapter 91 to implement this chapter."

SECTION 3. Section 516-5, Hawaii Revised Statutes, is amended to read as follows:

"§516-5 Penalty. Any person who violates this chapter shall be fined not more than $5,000 nor less than $1,000 or imprisoned not more than one year, or both. All fines collected shall be deposited in the [~~fee simple [residential] revolving~~] fund [~~created by this chapter~~]."

SECTION 4. Section 516-45, Hawaii Revised Statutes, is amended to read as follows:

"§516-45 General obligation bonds. The director of finance may, from time to time, issue general obligation bonds in such amounts as may be authorized by the legislature, for the purpose of acquisition by the Hawaii housing finance and development corporation of residential houselots within development tracts pursuant to chapter 516, part II or for the acquisition of suitable properties to exchange pursuant to section 516-24.5 or for the acquisition by the department of land and natural resources under section 171-50.1 of suitable properties for exchange pursuant to section 171-50.2 to effectuate the purpose of this chapter. [The principal and interest of general obligation bonds issued pursuant to this section shall be reimbursed to the general fund from the fee simple residential revolving fund as provided in section 516‑44.] Pending the receipt of funds from the issuance and sale of general obligation bonds, amounts required within the limits of legislative authorization may be advanced to the Hawaii housing finance and development corporation from the general fund of the State. Upon the receipt of the bond funds, the general fund shall be reimbursed the amount advanced."

SECTION 5. Section 209-34, Hawaii Revised Statutes, is repealed.

["~~§209-34 State disaster revolving loan fund.~~ (a) There is established the state disaster revolving loan fund into which shall be deposited all moneys appropriated by the legislature to the fund, contributed or transferred to the fund, and received as repayment of loans and interest payments as provided in this part, and from which the director of business, economic development, and tourism may make loans in accordance with this part.

(b) The director may transfer moneys from the state disaster revolving loan fund established by this section to either the Hawaii capital loan revolving fund established by section 210-3 or the Hawaii innovation development fund established by section 211E-2. Moneys from the Hawaii capital loan revolving fund established by section 210-3, the Hawaii innovation development loan revolving fund established by section 211E-2, and the state disaster revolving loan fund shall be disbursed by the department or the director pursuant to chapters 209, 210, and 211E, respectively. The department or the director may transfer moneys from the Hawaii capital loan revolving fund and the Hawaii innovation development fund to the state disaster revolving loan fund for disbursement pursuant to this chapter.

(c) The total amount of moneys transferred to the state disaster revolving loan fund, the Hawaii capital loan revolving fund, or the Hawaii innovation development fund shall not exceed $1,000,000 for each respective fund within the calendar year.

(d) Notwithstanding subsection (c) to the contrary, the total amount of moneys transferred between the state disaster revolving loan fund and the Hawaii capital loan revolving fund or the Hawaii innovation development fund shall not exceed $1,000,000 within the calendar year if the governor proclaims a state disaster pursuant to section 209-2.

~~(e) The director shall report any transfer of funds made under this section to the legislature within ten days of the transfer.~~

(f) All unexpended and unencumbered moneys remaining in the state disaster revolving loan fund at the close of each fiscal year, which are deemed by the director of finance to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year, shall lapse to the credit of the general fund."]

SECTION 6. Section 210D-4, Hawaii Revised Statutes, is repealed.

["~~§210D-4 Hawaii community-based economic development revolving fund; established.~~ There is established a revolving fund to be known as the Hawaii community-based economic development revolving fund from which moneys shall be loaned or granted by the department under this chapter. All moneys appropriated to the fund by the legislature, received as repayments of loans, payments of interest or fees, and all other moneys received by the fund from any other source shall be deposited into the revolving fund and used for the purposes of this chapter. The department may use all appropriations and other moneys in the revolving fund not appropriated for a designated purpose to make grants or loans."]

SECTION 7. Section 516-44, Hawaii Revised Statutes, is repealed.

["~~§516-44 Fee simple residential revolving fund.~~ A fee simple residential revolving fund is created. The funds appropriated for the purposes of this chapter and chapter 519 and all moneys received or collected by the Hawaii housing finance and development corporation under this chapter and chapter 519 shall be deposited in the revolving fund. Moneys collected to reimburse the corporation from the lessees for their pro rata share of the direct costs incurred by the corporation under this chapter shall be deposited into the revolving fund. The proceeds in the funds shall first be used to pay the principal and interest on bonds or other indebtedness issued by the corporation, or by the State, and then for necessary expenses, including indirect costs of the corporation in administering chapters 516 and 519.

~~Moneys in the fund shall be used to pay all costs of chapters 516 and 519 including administration.~~"]

SECTION 8. On June 30, 2015, all unencumbered balances remaining in the funds repealed by this Act shall be transferred by the director of finance into the high technology special fund.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on June 30, 2015.

Report Title:

Special Funds; Revolving Funds; Department of Business, Economic Development, and Tourism; High Technology Special Fund

Description:

Repeals particular funds that have become dormant or unnecessary and transfers the unencumbered balances in those funds into the high technology special fund. (SD1)

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