Bill > SB326

This bill amends Section 37-52.4 of the Hawaii Revised Statutes to provide more specific guidance on establishing and maintaining revolving funds, which are special financial accounts used by government agencies for specific purposes. The bill clarifies that revolving funds can only be created by legislative action and must meet several key criteria: they must serve a demonstrable need by explaining the program's purpose, scope, and financial details; show a clear connection between the benefits provided and the charges imposed; provide an essential financing mechanism; and most importantly, prove financial self-sustainability. The new provisions require the legislature to ensure that when establishing or reviewing a revolving fund, it can demonstrate financial sustainability through either annual projections showing the fund can operate without general fund appropriations or by presenting a detailed schedule of projected payments that will fund the account. This change aims to ensure more rigorous financial oversight and accountability for special government funding mechanisms, preventing the creation of revolving funds that might become financial burdens on the state's general fund.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=326&year=2025