Fiscal Administration

HRS div. 1, tit. 6, ch. 46, pt. III

in effect

HRS §46-41 PART III.

46-41. PART III. FISCAL ADMINISTRATION §46‑41 Budgets; financial records on fiscal year basis. Except as otherwise provided in this chapter, all counties shall maintain accounting and financial records on a fiscal year basis, beginning on July 1 or another day of a calendar year and ending on the appropriate day of the next succeeding calendar year. Counties may prepare a budget for a one- or two-year period; provided that accounting and financial records are maintained on a fiscal year basis as described above. [L 1965, c 166, §1; Supp, §138-6.5; HRS §46-41; am L 1993, c 169, §1; am L 2006, c 119, §1]

HRS §46-42 Reports by fiscal officers

46-42. Reports by fiscal officers The director of finance of each county shall prepare and submit to the council, transmit to the comptroller of the State, and publish in a newspaper of general circulation in the county, immediately following the close of each fiscal year, a statement of income and expenditure by funds, showing the principal sources of revenue, the function or purpose for which expenditures were made, together with a consolidated statement showing similar information for all funds; also a statement showing the balance in each fund at the beginning of the fiscal year, plus the receipts minus the disbursements, and the balance on hand at the close of the fiscal year after deducting outstanding warrants and vouchers. The director of finance may publish totals of expenses made by administrative departments for administration and executive purposes. [L 1913, c 21, §1; am L 1917, c 205, §1; RL 1925, §2173; am L 1927, c 46, §1; RL 1935, §2313; am L 1941, c 248, §1; RL 1945, §6004; RL 1955, §138-7; am L 1957, c 152, §1; am imp L 1965, c 166, §1; HRS §46-42; gen ch 1985]

HRS §46-43 County records

46-43. County records (a) Notwithstanding the provisions of any other law to the contrary, the county legislative body shall determine whether, and the extent to which, the county shall create, accept, retain, or store in electronic form any records and convert records to electronic form. (b) The director of finance of each county, with the approval of the legislative body and the legal advisor of the county, may authorize the destruction by burning, machine shredding, chemical disintegration, or other acceptable method of disposal of: (1) All warrants of the county that have been paid and that bear any date ten years prior to the date of destruction; and (2) All bonds and interest coupons of the county that have been canceled or paid and that bear any date two years prior to the date of destruction. (c) The director of finance, with the approval of the county legislative body and the county's legal advisor, shall determine the care, custody, and disposition of other county records and may destroy all vouchers, documents, and other records or papers, exclusive of records required either by law or by the legislative body of the county to be permanently retained, that have been on file or retained for a minimum period to be determined by the legislative body of the county by resolution. [L 1947, c 146, pt of §1; RL 1955, §138-8; am L 1963, c 22, §1; am L 1965, c 95, §1; HRS §46-43; gen ch 1985; am L 2005, c 177, §2]

HRS §46-44.5 Lapsed warrant

46-44.5. Lapsed warrant Any law to the contrary notwithstanding, any warrant drawn upon any county treasury shall be presented for payment before the close of the fiscal year next after the fiscal year in which it has been issued. All warrants not so presented within that time shall be deemed to be lapsed and shall not be paid, and any money held in the county treasury for payment of the warrant shall thereupon be transferred to a trust fund established and known as the lapsed warrants trust fund; provided that the fund balance in the trust fund shall not exceed $500,000 and any excess of that amount shall be transferred to the general fund; provided that within the period of four fiscal years immediately following the year in which the warrant was lapsed, the payee or assignee of the warrant, or, if the payee is deceased, the personal representative of the estate of the payee, or if the estate of the payee is closed, to any person lawfully entitled to the undisposed property of the deceased payee, shall be entitled to payment of the amount of the warrant out of the trust fund upon filing with the director of finance of the county a claim for recovery supported by evidence that may be deemed satisfactory by the director. [L 1974, c 56, §1; am L 1976, c 200, pt of §1; am L 1998, c 298, §1]

HRS §46-45 Excessive expenditures; penalty

46-45. Excessive expenditures; penalty No council, or other board, committee, department, bureau, officer, or employee of any county shall expend, or aid or participate in expending, during any period of time for any purpose, except for and in the exercise by the county of the power of eminent domain, any sum in the absence of an appropriation for the purpose for the period, or any sum in excess of an appropriation, if any, for the purpose for the period, or incur, authorize, or contract, or aid or participate in incurring, authorizing, or contracting, during any fiscal year, liabilities or obligations, whether payable during the fiscal year or not, for any or all purposes, except for and in the exercise by the county of the power of eminent domain, in excess of the amount of money available for the purposes for the county during the year. Any person who violates this section shall be fined not more than $1,000 or imprisoned not more than one year, or both. [L 1911, c 72, §1; RL 1925, §2178; RL 1935, §2315; am L 1941, c 247, §1; RL 1945, §6006; RL 1955, §138-10; HRS §46-45]

HRS §46-46 Excess expenditures; when permitted

46-46. Excess expenditures; when permitted Any provision of law to the contrary notwithstanding, the council of any county may, with the prior approval of the governor and the state director of finance, and upon the authority of the council, any duly authorized department, bureau, officer, or employee of the county may, (1) incur, authorize, and contract, during any fiscal year, liabilities and obligations, whether payable during the fiscal year or not, for any and all purposes, in excess of the moneys available for the purposes of the county during the year, provided that in the case of the county of Hawaii, Kauai, or Maui, the total of liabilities and obligations incurred, authorized, or contracted during any fiscal year in excess of the moneys available to the county during the year shall not exceed $100,000, and in the case of the city and county of Honolulu shall not exceed $250,000, and (2) pay such liabilities and obligations out of any moneys borrowed from the State under section 36-23. [L 1949, c 342, §2; RL 1955, §138-11; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §46-46]

HRS §46-47 Franchise fees, disposition of

46-47. Franchise fees, disposition of All moneys received by any county from any public utility corporation under the provisions of the franchise granted to the corporation shall be kept in the highway fund created by section 249-18 and expended on the construction, maintenance, improvement, and repair of public roads and highways of the county in which the same are received, including for the purposes of this section, the installation, maintenance, and repair of street lights and power, and other charges for street lighting purposes as well as the replacement of old street lights, and footpaths or sidewalks; provided that in the city and county of Honolulu the city council may provide for the maintenance of the traffic department, for other purposes and functions connected with the prevention of automobile accidents and preservation of safety upon the highways and streets in the city and county of Honolulu, and for the establishment and maintenance, under the direction of the police department, of one or more vehicle testing stations, from the moneys. [L 1923, c 106, §1; RL 1925, §2179; am L 1927, c 32, §1; RL 1935, §2316; am L 1939, c 130, §1; am L 1941, c 314, §1; RL 1945, §6007; am L 1945, c 83, §2; am L 1955, c 183, §2; RL 1955, §138-12; HRS §46-47]

HRS §46-48 Deposit of funds in banks

46-48. Deposit of funds in banks Chapter 38, relating to the deposit of state moneys in banks, is extended to the several counties, so that each county and its director of finance and mayor, respectively, shall have all the rights, powers, obligations and duties in respect of the moneys of the counties as the State, its director of finance and governor, respectively, have in respect of the moneys of the State under chapter 38, provided that nothing in this section contained shall be held to preclude the director of finance of any county from making special deposits, with the approval of the council or the mayor, as the case may be, for the safekeeping of public moneys, other than those deposited in banks under this section, as provided in sections 62-111 and 70-13. Note Sections 62-111 and 70-13 referred to in text are repealed. [L 1911, c 156, §1; RL 1925, §2180; RL 1935, §2317; am L 1935, c 67, §4; RL 1945, §6008; RL 1955, §138-13; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §46-48]

HRS §46-49 Interest on deposits

46-49. Interest on deposits If any money deposited by the director of finance, under the provisions of section 46-48, belongs to the waterworks funds, then any interest received on the same shall be paid into and credited to the funds, and if any money so deposited belongs to a bond fund, then any interest received on the same shall be paid into and credited to the fund which provides for the payment of interest on bonds. [L 1927, c 194, §2; RL 1935, §2318; am L 1935, c 67, §5; RL 1945, §6010; RL 1955, §138-14; am L 1963, c 18, §1; HRS §46-49]

HRS §46-50 Short term investment of county moneys

46-50. Short term investment of county moneys (a) The director of finance of each county may, with the approval of the legislative body, invest county moneys that are in excess of the amounts necessary for the meeting of immediate requirements when in the judgment of the legislative body the action will not impede or hamper the necessary financial operations of the county in: (1) Bonds or interest-bearing notes or obligations: (A) Of the county; (B) Of the State; (C) Of the United States; or (D) Of agencies of the United States for which the full faith and credit of the United States are pledged for the payment of principal and interest; (2) Federal Farm Credit System notes and bonds; (3) Federal Agricultural Mortgage Corporation notes and bonds; (4) Federal Home Loan Bank notes and bonds; (5) Federal Home Loan Mortgage Corporation bonds; (6) Federal National Mortgage Association notes and bonds; (7) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof; (8) Tennessee Valley Authority notes and bonds; (9) Repurchase agreements fully collateralized by any such bonds or securities; (10) Federally insured savings accounts; (11) Time certificates of deposit; (12) Certificates of deposit open account; (13) Bonds of any improvement district of any county of the State; provided that the bonds are of investment grade or supported by the general obligation pledge of the county in which the improvement district is located; (14) Bank, savings and loan association, and financial services loan company repurchase agreements; (15) Student loan resource securities including: (A) Student loan auction rate securities; (B) Student loan asset-backed notes; (C) Student loan program revenue notes and bonds; and (D) Securities issued pursuant to Rule 144A of the Securities Act of 1933, including any private placement issues; issued with either bond insurance or overcollateralization guaranteed by the United States Department of Education; provided all insurers maintain a triple-A rating by Standard & Poor's, Moody's, Duff & Phelps, Fitch, or any other major national securities rating agency; (16) Commercial paper with an A1/P1 or equivalent rating by any national securities rating service; (17) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and (18) Securities of a money market fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in title 17 Code of Federal Regulations section 270.2a-7; provided the investments are due to mature not more than five years from the date of investment. The income derived therefrom shall be deposited in the fund or funds that the legislative body shall direct; provided that if any money invested under this section belongs to any waterworks fund, then any income derived therefrom shall be paid into and credited to the fund. (b) Except with respect to an early withdrawal penalty on an investment permitted by this section, the amount of such penalty being mutually agreed at the time of acquisition of such investment, no investment permitted by this section shall require or may in the future require payments by the county, whether unilateral, reciprocal, or otherwise, including margin payments, or shall bear interest at a variable rate which causes or may cause the market price of such investment to fluctuate; provided that such limitation shall not apply to money market mutual funds which: (1) Invest solely in: (A) Direct and general obligations of the United States of America; or (B) Obligations of any agency or instrumentality of the United States of America, the payment of the principal and interest on which are unconditionally guaranteed by the full faith and credit of the United States of America; (2) Are rated at the time of purchase "AAAm-G" or its equivalent by Standard & Poor's Ratings Group; and (3) Are open-end management investment companies regulated under the Investment Company Act of 1940, as amended, which calculate their current price per share pursuant to Rule 2a-7 (title 17 Code of Federal Regulations section 270.2a-7) promulgated under such act. (c) Furthermore, a county shall not acquire any investment or enter into any agreement in connection with the acquisition of any investment or related to any existing investment held by the county, which would require or may in the future require any payment by the county, whether unilateral, reciprocal, or otherwise, such as swap agreements, hedge agreements, or other similar agreements. For purposes of this subsection, payment for a swap agreement or hedge agreement means any payment made by the county in consideration or in exchange for a reciprocal payment by any person, including a variable rate payment in exchange for a fixed rate payment, a fixed rate payment in exchange for a variable rate payment, a payment when a cap or a floor amount is exceeded, or other similar payment. [L 1945, c 43, pt of §1; RL 1955, §138-15; am L 1965, c 40, §1; am L 1976, c 86, §1; HRS §46-50; am L 1998, c 297, §1; am L 2007, c 24, §1; am L 2017, c 193, §1]

HRS §46-51 Deposit of securities with mainland depositories

46-51. Deposit of securities with mainland depositories The director of finance of each county may, with the approval of the council, deposit securities owned by the county in mainland depositories. The securities shall be subject to all the terms, conditions, and authorizations of the depository agreement which the director of finance may have or may make with any such mainland depository. Further, the director of finance of each county may, with the approval of the council, and with the consent of the state director of finance, place such securities under the control of the state director of finance for safekeeping in mainland depositories. The securities shall be subject to all the terms, conditions, and authorizations of any depository agreement which the state director of finance may have or make with any mainland depository, and all expenses thereof shall be borne by the county. Moneys received by any mainland depository, on behalf of the county, or on behalf of the state director of finance for the county, from the sale or redemption of securities, or as interest, shall not for a period of thirty days after the receipt thereof by the depository be considered as deposits within the meaning of chapter 38, and moneys placed with the depositories for the purchase of securities shall not be considered as deposits within the meaning of chapter 38. [L 1945, c 43, pt of §1; RL 1955, §138-16; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §46-51]

HRS §46-52 Deposit of securities

46-52. Deposit of securities The directors of finance of the several counties may deposit for safekeeping with the state director of finance securities deposited with them by the banks with whom they have deposits. The duly authorized representatives of any bank shall at all times during the office hours of the state director of finance have access to the security or securities belonging to the bank deposited with the state director of finance by the directors of finance of the several counties for the purpose of examining the same and removing such coupons as may have matured, the examination to be made in the presence of the state director of finance or the director's representative. [L 1935, c 25, §2; RL 1945, §6009; RL 1955, §138-17; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §46-52; gen ch 1985]

HRS §46-53 Loans to the State

46-53. Loans to the State When there are county moneys which in the judgment of the county director of finance are in excess of the amounts necessary for the immediate county requirements, the county director of finance may, with the approval of the director's council, make temporary loans therefrom to the State if in the director's judgment the action will not impede or hamper the necessary financial operations of the county. The loans to the State may be made without interest, or at such rates of interest, and upon such other terms and conditions, as may be agreed upon between the county director of finance, and the state director of finance and as may be approved by the council and the governor. The loans shall be made only upon the request of the state director of finance, approved by the governor, and they shall be repayable upon the demand of the county director of finance. [L 1945, c 133, §2; RL 1955, §138-18; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §46-53; gen ch 1985]

HRS §46-54 Collection of delinquent license fees, taxes, and other amounts

46-54. Collection of delinquent license fees, taxes, and other amounts In addition to the penalty or forfeiture prescribed by law, an action for the recovery of any delinquent license fees, taxes, or other amounts payable by law, may be brought by the director of finance of any county in the name of the county to which the license fee, tax, or other amount payable by law is due. [L 1943, c 175, §1; RL 1945, §6018; RL 1955, §138-19; HRS §46-54]

HRS §46-55 Schedule of council anticipated expenditures

46-55. Schedule of council anticipated expenditures ] Notwithstanding any law to the contrary, in any county where the population exceeds one hundred thousand, immediately following the enactment of the operating budget ordinance, the head of the legislative body of the county shall submit to the budget director of the county a schedule showing the expenditures of the body anticipated for each quarter of the fiscal year. The schedule shall not require the approval of nor can it be altered by the mayor and the legislative body may proceed without other authority to incur obligations or make expenditures after the schedule has been submitted. The director of finance shall approve or issue any requisition, purchase order, voucher, or warrant in accordance with the schedule and upon request of the legislative body. The schedule may be altered at any time by the body. [L 1970, c 207, §1]

HRS §46-56 Purchasing

46-56. Purchasing The director of finance of each county that does not have any centralized purchasing provision in its charter, may adopt rules and regulations governing the procurement and purchase of materials, supplies, equipment, and services, subject to the requirements of chapter 103D. [L 1977, c 4, §1; am L Sp 1993, c 8, §54]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0046/HRS_0046-.htmFetched: 11/10/2026