Investments; Transfers

HRS div. 1, tit. 5, ch. 36, pt. II

in effect

HRS §36-21 Short-term investment of state moneys

36-21. Short-term investment of state moneys (a) The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in: (1) Any bonds or interest-bearing notes or obligations: (A) Of the State (including state director of finance's warrant notes issued pursuant to chapter 40); (B) Of the United States; (C) For which the 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) Tennessee Valley Authority notes and bonds; (8) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities; (9) Securities of a money market mutual 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 17 Code of Federal Regulations section 270.2a-7; (10) Federally insured savings accounts; (11) Time certificates of deposit; (12) Certificates of deposit open account; (13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies; (14) Commercial paper with an A1/P1 or equivalent rating by any national securities rating service; and (15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment. Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund. As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation. (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 State, 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 (17 Code of Federal Regulations section 270.2a-7) promulgated under such act. (c) Furthermore, the State 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 State, which would require or may in the future require any payment by the State, whether unilateral, reciprocal, or otherwise, such as swap agreements, hedge agreements, or other similar agreements. For purposes of this section, a swap or hedge payment is any payment made by the State in consideration or in exchange for a reciprocal payment by any person, such as 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 59, §1; am L 1947, c 244, §1; RL 1955, §132-12; am L 1959, c 119, §1; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §36-21; am L 1977, c 105, §1; am L 1982, c 155, §1; gen ch 1985; am L 1988, c 78, §1; am L 1993, c 107, §1; am L 1995, c 109, §1; am L 1996, c 117, §1; am L 1997, c 47, §1; am L 1998, c 119, §1 and c 273, §1; am L 1999, c 160, §23; am L 2000, c 26, §1; am L 2001, c 39, §1; am L 2009, c 79, §§31, 34(4); am L 2010, c 127, §2; am L 2015, c 35, §50; am L 2017, c 9, §2]

HRS §36-22 Loans for federal-aid projects

36-22. Loans for federal-aid projects (a) The director of finance may make loans to any state agency from the general, special, and revolving funds of the State for the purpose of enabling the State to prepay the costs reimbursable by the federal government on federal aid projects, when the director determines that: (1) There are any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial obligations of the State. (2) The project is authorized in compliance with section 103-7. (3) Federal aid in the form of reimbursable funds has been committed to the project in an amount sufficient to repay the principal on the loan. (4) Federal reimbursement is expected to be received within a reasonable period of time after the loan is made. (b) In addition to any other conditions that the director of finance may impose, any loan made pursuant to this section shall be subject to the following conditions: (1) The full amount of the loan must be repaid to the fund from which the loan was made upon final settlement of accounts with the participating federal agency. (2) The term of the loans shall not exceed one calendar year from the time of the loan; provided, at the option of the director, the loans or the balances thereof may be renewed annually. (c) The director may, in the director's discretion, require payment of interest on any loan made, the rate of interest not to exceed that which the State could have realized if it invested the same in time certificates of deposit. (d) The director shall have the option at any time to recall the loan and recover the outstanding amount of the loan plus interest due, if any. [L 1965, c 130, §2; Supp, §132-12.5; HRS §36-22; gen ch 1985]

HRS §36-24 Loans to state and county agencies

36-24. Loans to state and county agencies When there are moneys in the general, special, or revolving funds of the State which in the director of finance's judgment are in excess of the amounts necessary for the immediate state requirements, the director may make temporary loans therefrom to the employees retirement system, the board of water supply of the city and county of Honolulu, the Hawaii housing finance and development corporation, or to any state or county department, board, commission, officer, authority, or agency authorized under the laws of the State to issue bonds, or to the several counties, if in the director's judgment the action will not impede or hamper the necessary financial operations of the State. The loans to any county shall not at any time be more than $100,000 over the amount of tax moneys which the director estimates will be paid by the director to the county during the balance of the calendar year, provided that in the case of the city and county of Honolulu the loans may be made up to $250,000 over the amount of tax moneys which the director estimates will be paid by the director to the city and county during the balance of the calendar year. The loans to other organizations shall not at any time exceed the amount of moneys which the director estimates the organization will be in receipt of, from bond funds or other sources, during the twelve months following the loan. The loans shall be without interest. Loans to counties shall be made only upon the request of the county treasurer approved by the county council. All loans shall be repaid upon the demand of the director. In the absence of any demand, loans to counties shall be repaid before June 30 of the following year, pursuant to the following procedure: from time to time as tax moneys which are payable to the borrowing county are deposited into the treasury, the director shall retain therefrom sufficient moneys to cover the amounts of all loans, and shall reimburse the general, special, or revolving funds therewith. [L 1945, c 133, §1; am L 1947, c 167, pt of §1; am L 1949, c 342, pt of §1; RL 1955, pt of §132-13; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §36-24; gen ch 1985; am L 1987, c 337, §3; am L 1997, c 350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]

HRS §36-26 Transfer of unrequired funds for redemption of serial bonds

36-26. Transfer of unrequired funds for redemption of serial bonds The director of finance, with the approval of the governor, may transfer all balances of moneys received from the sale of state bonds for state improvements on deposit in loan funds, which are no longer required for the purposes for which the state bonds were issued, from the loan funds to the general fund in case the moneys were received from the sale of serial bonds. The amounts so transferred shall be used for the redemption of the serial bonds as they become due. The amounts transferred to the general fund shall be deemed to be appropriated for the purpose of the redemption of serial bonds as they become due. [L 1941, c 100, §1; RL 1945, §5930; RL 1955, §132-15; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §36-26]

HRS §36-27 Transfers from special funds for central service expenses

36-27. Transfers from special funds for central service expenses (a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the University of Hawaii; (4) Convention center enterprise special fund under section 201B-8; (5) Special funds established by section 206E-6; (6) Aloha Tower fund created by section 206J-17; (7) Funds of the employees' retirement system created by section 88-109; (8) Hawaii hurricane relief fund established under chapter 431P; (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269-42; (11) Emergency and budget reserve fund under section 328L-3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Glass advance disposal fee established by section 342G-82; (16) Center for nursing special fund under section 304A-2163; (17) Passenger facility charge special fund established by section 261-5.5; (18) Solicitation of funds for charitable purposes special fund established by section 467B-15; (19) Land conservation fund established by section 173A-5; (20) Court interpreting services revolving fund under section 607-1.5; (21) Trauma system special fund under section 321-22.5; (22) Hawaii cancer research special fund; (23) Community health centers special fund; (24) Emergency medical services special fund; (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (26) Shared services technology special fund under section 27-43; (27) Automated victim information and notification system special fund established under section 353-136; (28) Deposit beverage container deposit special fund under section 342G-104; (29) Hospital sustainability program special fund under section 346G-4; (30) Nursing facility sustainability program special fund under section 346F-4; (31) Hawaii 3R's school improvement fund under section 302A-1502.4; (32) After-school plus program revolving fund under section 302A-1149.5; (33) Civil monetary penalty special fund under section 321-30.2; and [(34)] Stadium development special fund under section 109-3.5, shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year. (b) Notwithstanding any other law to the contrary, the director shall deposit three per cent of all moneys collected pursuant to subsection (a) into the shared services technology special fund established pursuant to section 27-43. [L 1955, c 247, §1; RL 1955, §132-16; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; am L 1964, c 34, §1A; am L 1967, c 281, §2; HRS §36-27; am L 1969, c 269, §1; am L 1970, c 115, §1; am L 1976, c 123, §1; am L 1986, c 123, §1; am L 1989, c 368, §4; am L 1993, c 280, §44; am L Sp 1993, c 7, §14; am L 1994, c 106, §1, c 136, §1, c 137, §1, and c 232, §4; am L 1995, c 161, §5 and c 211, §§3, 17; am L Sp 1995, c 11, §6; am L 1996, c 89, §3 and c 123, §1; am L 1997, c 123, §1, c 124, §3, and c 216, §§3, 13; am L 1998, c 115, §6, c 142, §2, c 156, §4, and c 311, §3; am L 1999, c 98, §2, c 129, §2, c 135, §1, c 155, §2, c 163, §8, c 194, §1, and c 304, §3; am L 2000, c 205, §3 and c 297, §23; am L 2001, c 163, §2, c 239, §3, and c 270, §4; am L 2002, c 16, §4, c 39, §2, c 86, §1, c 160, §3, c 176, §6, and c 253, §4; am L 2003, c 177, §2, c 179, §1, and c 198, §4; am L 2004, c 93, §2 and c 101, §1; am L 2005, c 156, §2 and c 184, §2; am L 2006, c 75, §3, c 305, §3, and c 316, §4; am L 2007, c 9, §2 and c 290, §7; am L 2008, c 226, §3; am L 2009, c 79, §§27, 34(3); am L 2010, c 200, §3; am L 2011, c 84, §3; am L 2012, c 190, §2; am L 2013, c 100, §2, c 157, §§3, 9(1), and c 228, §1; am L 2014, c 123, §3, c 124, §§3, 7(3), and c 232, §2; am L 2015, c 69, §3, c 70, §§3, 4, c 71, §2, and c 237, §14; am L 2016, c 59, §3 and c 60, §4; am L 2017, c 59, §6 and c 60, §6; am L 2019, c 163, §7 and c 173, §7; am L 2021, c 24, §8, c 38, §8, and c 146, §13; am L Sp 2021, c 1, §15; am L 2023, c 109, §14 and c 110, §12]

HRS §36-28 Transfers from state highway fund for central service expenses

36-28. Transfers from state highway fund for central service expenses Except as hereinafter provided, and notwithstanding any other law to the contrary, there shall be deducted from time to time by the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to the state highway fund created by section 248-8, five per cent of all receipts and deposits in the fund, after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has been previously made, which deductions shall be transferred to the general fund of the State and become general realizations of the State. The state department of transportation shall cooperate with the director of finance in effecting these transfers. [L 1957, c 69, §2; am L Sp 1959 2d, c 1, §§14, 26; am L 1963, c 114, §1; Supp, §132-16.5; HRS §36-28]

HRS §36-28.5 Transfer from airport revenue fund

36-28.5. Transfer from airport revenue fund Any law to the contrary notwithstanding, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the airport revenue fund five per cent of all receipts and deposits in the airport revenue fund after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has previously been made. The deductions shall be transferred to the general fund of the State and become general realizations of the State. For the purpose of this section, the term "any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year" shall include: (1) Amounts which are so pledged, charged or encumbered; (2) Amounts otherwise required to be applied to the payment of principal of and interest on revenue bonds or other revenue obligations; and (3) Amounts required by law to be paid from the airport revenue fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for airport purposes. The director of transportation shall cooperate with the director of finance in effecting the transfer. [L 1970, c 14, §1]

HRS §36-29 Transfer from harbor special fund

36-29. Transfer from harbor special fund Any other law to the contrary notwithstanding, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the harbor special fund five per cent of all receipts and deposits in the harbor special fund after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has previously been made. The deductions shall be transferred to the general fund of the State and become general realizations of the State. For the purposes of this section, the term "any amount pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year" shall include: (1) Amounts which are so pledged, charged or encumbered; (2) Amounts otherwise required to be applied to the payment of principal of and interest on revenue bonds or other revenue obligations; (3) Amounts required to be paid into a separate special fund for the payment of principal of and interest on revenue bonds or other revenue obligations payable from the second separate special fund; and (4) Amounts required by law to be paid from the harbor special fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for harbor purposes. The second separate special fund maintained by deposits from the harbor special fund shall not be deemed to be a special fund within the meaning of section 36-27 or section 36-30. The director of transportation shall cooperate with the director of finance in effecting the transfer. [L 1955, c 247, §3; RL 1955, §132-18; am L Sp 1959 2d, c 1, §§14, 26; am L 1963, c 114, §1; am L 1967, c 221, §7; HRS §36-29]

HRS §36-29.5 Transfer from boating special fund

36-29.5. Transfer from boating special fund Notwithstanding any law to the contrary, including section 36-27, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the boating special fund, five per cent of all receipts and deposits in the boating special fund after subtracting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the time period for which the deduction is to be made. The deductions shall be transferred to the general fund of the State and shall become general realizations of the State. For the purpose of this section, the term "any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon" shall include: (1) Amounts that are so pledged, charged, or encumbered; and (2) Amounts required by law to be paid from the boating special fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for boating facility purposes. The chairperson of the board of land and natural resources shall cooperate with the director of finance in effecting the transfer. [L 2000, c 47, §1]

HRS §36-30 Special fund reimbursements for departmental administrative expenses

36-30. Special fund reimbursements for departmental administrative expenses (a) Each special fund, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the University of Hawaii; (4) Special funds established by section 206E-6; (5) Aloha Tower fund created by section 206J-17; (6) Funds of the employees' retirement system created by section 88-109; (7) Hawaii hurricane relief fund established under chapter 431P; (8) Convention center enterprise special fund established under section 201B-8; (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269-42; (11) Emergency and budget reserve fund under section 328L-3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Center for nursing special fund under section 304A-2163; (16) Passenger facility charge special fund established by section 261-5.5; (17) Court interpreting services revolving fund under section 607-1.5; (18) Trauma system special fund under section 321-22.5; (19) Hawaii cancer research special fund; (20) Community health centers special fund; (21) Emergency medical services special fund; (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (23) Shared services technology special fund under section 27-43; (24) Nursing facility sustainability program special fund established pursuant to section 346F-4; (25) Automated victim information and notification system special fund established under section 353-136; (26) Hospital sustainability program special fund under section 346G-4; (27) Civil monetary penalty special fund under section 321-30.2; and [(28)] Stadium development special fund under section 109-3.5, shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned. (b) Administrative expenses shall include: (1) Salaries; (2) Maintenance of buildings and grounds; (3) Utilities; (4) General office expenses; and (5) Implementation of information technology policies developed by the chief information officer and the information technology steering committee pursuant to section 27-43. (c) The pro rata share of each special fund shall be that proportion of the administrative expenses of the department, including those paid from all special funds administered by the department, which the expenditures of the special fund bear to the total expenditures of the department; provided that in determining the amount to be charged to each special fund for its pro rata share: (1) Credit shall be given for any administrative expenses paid from the special fund concerned; and (2) Other adjustments shall be made as necessary to achieve an equitable apportionment. (d) The director of finance may determine the amount to be charged to each special fund and may cause the amounts to be transferred to the general fund as reimbursements. (e) No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all departmental administrative expenses assessments made during the preceding fiscal year. [L 1955, c 247, §2; RL 1955, §132-17; am L 1957, c 69, §1; am L 1963, c 193, §38; am L 1964, c 34, §1B; am L 1967, c 281, §3; HRS §36-30; am L 1969, c 269, §2; am L 1970, c 115, §2; am L 1976, c 123, §2; am L 1986, c 123, §2; am L 1989, c 309, §4 and c 368, §5; am L 1993, c 280, §45; am L 1994, c 136, §2, c 137, §2, and c 232, §5; am L 1995, c 161, §6 and c 211, §§4, 17; am L Sp 1995, c 11, §7; am L 1996, c 89, §4, c 123, §2, and c 262, §28; am L 1997, c 123, §2, c 124, §4, and c 216, §§4, 13; am L 1998, c 115, §7 and c 156, §5; am L 1999, c 98, §§3, 13(3), c 129, §§3, 22(1), (3), c 135, §§2, 7(1), c 155, §§3, 7(1), c 163, §§9, 17, c 194, §1, and c 304, §§4, 10(1); am L 2000, c 205, §4 and c 297, §24; am L 2001, c 163, §3, c 239, §4, and c 270, §5; am L 2002, c 39, §3, c 86, §2, c 160, §4, and c 253, §5; am L 2003, c 177, §3, c 179, §2, c 198, §5, and c 213, §15; am L 2004, c 101, §2; am L 2005, c 184, §3; am L 2006, c 75, §4, c 305, §4, and c 316, §5; am L 2007, c 9, §3 and c 290, §8; am L 2008, c 226, §4; am L 2009, c 79, §§28, 34(3); am L 2010, c 200, §4; am L 2012, c 156, §§3, 5, c 190, §3, and c 217, §§3, 5; am L 2013, c 100, §3, c 141, §2, c 142, §3, and c 157, §§4, 9(1); am L 2014, c 123, §§2, 4 and c 124, §§2, 4, 7; am L 2015, c 69, §§2, 3, c 70, §§2, 3, 5, c 71, §3, and c 237, §5; am L 2016, c 59, §§2, 3 and c 60, §§3, 4; am L 2017, c 59, §§5, 6 and c 60, §§5, 6; am L 2019, c 163, §§6, 7 and c 173, §§6, 7; am L 2021, c 24, §§7, 8, c 38, §§7, 8, and c 146, §14; am L Sp 2021, c 1, §16; am L 2023, c 109, §§13, 14 and c 110, §§11, 12]

HRS §36-31 Transfers from special funds, limited or suspended, when

36-31. Transfers from special funds, limited or suspended, when (a) If any transfer contemplated by sections 36-27, 36-29, and 36-30 might, if effected, result in loss to the State or to any special fund affected, of any federal funds, or would be in violation of the Constitution or any law of the United States, the governor shall issue an executive order setting forth the facts and suspending the application of sections 36-27, 36-29, and 36-30 to the special fund affected in whole or in part, or limiting the transfer, as shall be necessary to avoid the loss of federal funds or to avoid the unconstitutionality or violation. The transfer shall not be made except to the extent, if at all, which will not result in the loss of federal funds or violation. (b) If any transfer contemplated by section 36-28 might, if effected, cause an expenditure out of the state highway fund in excess of moneys available in such fund, result in loss to the State or to the state highway fund or any federal funds, or would be in violation of the Constitution or any law of the United States, the governor shall issue an executive order setting forth the facts and suspending the application of section 36-28 to the state highway fund in whole or in part, or limiting the transfer, as shall be necessary to avoid the expenditure of moneys in excess of moneys available in the state highway fund, the loss of federal funds or to avoid the unconstitutionality or violation. The transfer shall not be made except to the extent, if at all, which will not result in the loss of federal funds or violation. (c) Effective July 1, 1995, transfers for central services expenses shall be limited to the current fiscal year; provided that this subsection shall not apply to assessments made but not collected for prior years. [L 1955, c 247, §7; RL 1955, §132-19; HRS §36-31; am L 1989, c 287, §1; am L Sp 1995, c 15, §3]

HRS §36-36 School physical plant operations and maintenance account; maintenance schedule

36-36. School physical plant operations and maintenance account; maintenance schedule (a) There is created in the state general fund under EDN 400 (school support) the school physical plant operations and maintenance account, into which shall be deposited all legislative appropriations to the account. The moneys in the account shall be used solely for school repairs and preventive maintenance projects scheduled after June 30, 2001. Expenditures from the account shall be subject to sections 37-31 and 37-33 to 37-40. Based on the prioritization approved by the department of education, appropriations or authorizations from the account shall be expended by the superintendent of education. (b) Every school facility newly constructed or renovated after June 30, 2001, shall include a preventive maintenance schedule prepared by the architect or engineer of the facility or the capital improvement project. The maintenance schedule shall include: (1) A description of each major component of a facility or capital improvement project and the component's maintenance; (2) The starting date of each maintenance project; (3) The current, future, and any recurring cost of each maintenance project; (4) The useful life of the facility or capital improvement project; (5) The present value of the cost of normally scheduled maintenance over the useful life of the facility; (6) The adjusted life of the facility or capital improvement project; and (7) The replacement date of the facility or capital improvement project. (c) Moneys in physical plant operations and maintenance account shall be allocated according to departmental school districts based on: (1) Estimated preventive and scheduled maintenance costs that reflect the age and condition of existing school facilities in the State in the following categories: re-roofing, electrical, athletic facilities, re-surfacing, equipment, exterior painting, plumbing, structural integrity, termite ground treatment, termite tent treatment, interior painting, air conditioning change out, and re-carpeting; and (2) Budgeted recurring maintenance, health and safety requirements, and legal mandates. (d) The expenditure of funds made under this Act for any project with an estimated total cost of less than $100,000 shall be exempt from section 464-4; provided that: (1) The superintendent of education shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices, subject to chapter 103D; (2) Insofar as is practical, and based on specifications developed, adequate and reasonable competition of no fewer than three quotations shall be solicited for each project based on rules adopted by the superintendent of education; (3) Considering all factors, including quality, warranty, and delivery, the award shall be made to the vendor with the most advantageous quotation; (4) The procurement requirements shall not be artificially divided or parceled so as to avoid competitive bidding or competitive proposals; and (5) Formal design for projects shall be done when there is a clear need to preserve structural integrity, health and safety, or to clearly communicate construction requirements. (e) The department shall annually post on its website information related to a financial statement of the account and the status of school repair and preventive maintenance projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session. The department of education shall also post the following information on its website and update the information quarterly: (1) Expenditures for school repair and preventive maintenance projects undertaken pursuant to this section, shall be posted within thirty days of each project's completion; and (2) A list of each school's repair and maintenance needs to be undertaken. [L 2001, c 316, pt of §2; am L 2003, c 188, §5; am L 2004, c 51, §51 and c 216, §7; am L 2012, c 133, §4; am L 2014, c 232, §4]

HRS §36-41 Energy retrofit and performance contracting for public facilities

36-41. Energy retrofit and performance contracting for public facilities (a) All agencies shall evaluate and identify for implementation energy efficiency retrofitting through performance contracting. Agencies that perform energy efficiency retrofitting may continue to receive budget appropriations for energy expenditures at an amount that shall not fall below the pre-retrofitting energy budget but shall rise in proportion to any increase in the agency's overall budget for the duration of the performance contract or project payment term. (b) Any agency may enter into a multi-year energy performance contract for the purpose of undertaking or implementing energy conservation or alternate energy measures in a facility or facilities. An energy performance contract may include but shall not be limited to financing options such as leasing, lease-purchase, financing agreements, third-party joint ventures, guaranteed-savings plans, or energy service contracts, or any combination thereof; provided that in due course the agency may receive title to the energy system being financed. Except as otherwise provided by law, the agency that is responsible for a particular facility shall review and approve energy performance contract arrangements for the facility. (c) Notwithstanding any law to the contrary relating to the award of public contracts, any agency desiring to enter into an energy performance contract shall do so in accordance with the following provisions: (1) The agency shall issue a public request for proposals, advertised in the same manner as provided in chapter 103D, concerning the provision of energy efficiency services or the design, installation, operation, and maintenance of energy equipment or both. The request for proposals shall contain terms and conditions relating to submission of proposals, evaluation and selection of proposals, financial terms, legal responsibilities, and other matters as may be required by law and as the agency determines appropriate; (2) Upon receiving responses to the request for proposals, the agency may select the most qualified proposal or proposals on the basis of the experience and qualifications of the proposers, the technical approach, the financial arrangements, the overall benefits to the agency, and other factors determined by the agency to be relevant and appropriate; (3) The agency thereafter may negotiate and enter into an energy performance contract with the person or company whose proposal is selected as the most qualified based on the criteria established by the agency; (4) The term of any energy performance contract entered into pursuant to this section shall not exceed twenty years; (5) Any contract entered into shall contain the following annual allocation dependency clause: "The continuation of this contract is contingent upon the appropriation of funds to fulfill the requirements of the contract by the applicable funding authority. If that authority fails to appropriate sufficient funds to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which allocations were made"; (6) Any energy performance contract may provide that the agency shall ultimately receive title to the energy system, vehicles, fleet vehicles, and fueling and charging infrastructure being financed under the contract; (7) Any energy performance contract shall provide that total payments shall not exceed total savings; and (8) For any guaranteed-savings plan: (A) The payment obligation for each year of the contract, including the year of installation, shall be guaranteed by the private sector person or company to be less than the annual energy cost savings attributable under the contract to the energy equipment and services. Such guarantee, at the option of the agency, shall be a bond or insurance policy, or some other guarantee determined sufficient by the agency to provide a level of assurance similar to the level provided by a bond or insurance policy; and (B) In the event that the actual annual verified savings are less than the annual amount guaranteed by the energy service company, the energy service company, within thirty days of being invoiced, shall pay the agency, or cause the agency to be paid, the difference between the guaranteed amount and the actual verified amount. (d) For purposes of this section: "Agency" means any executive department, independent commission, board, bureau, office, or other establishment of the State or any county government, the judiciary, the University of Hawaii, or any quasi-public institution that is supported in whole or in part by state or county funds. "Energy performance contract" means an agreement for the provision of energy services and equipment, including but not limited to building or facility energy conservation enhancing retrofits, water saving technology retrofits, electric vehicle charging infrastructure, and alternate energy technologies, in which a private sector person or company agrees to finance, design, construct, install, maintain, operate, or manage energy systems or equipment to improve the energy efficiency of, or produce energy in connection with, a facility or electric vehicle charging system in exchange for a portion of the cost savings, lease payments, or specified revenues, and the level of payments is made contingent upon the verified energy savings, energy production, avoided maintenance, avoided energy equipment replacement, avoided vehicle maintenance or fuel costs associated with the implementation of a vehicle fleet energy efficiency program pursuant to section 36-42, or any combination of the foregoing bases. Energy conservation retrofits also include energy saved off-site by water or other utility conservation enhancing retrofits. "Facility" means a building, buildings, infrastructure, or similar structure, including any site owned or leased by, or otherwise under the jurisdiction or control of, the agency. "Financing agreement" shall have the same meaning as in section 37D-2. "Guaranteed-savings plan" means an agreement under which a private sector person or company undertakes to design, install, operate, and maintain improvements to an agency's facility or facilities and the agency agrees to pay a contractually specified amount of verified energy cost savings. "Verified" means the technique used in the determination of baseline energy use, post-installation energy use, and energy and cost savings by the following measurement and verification techniques: engineering calculations, metering and monitoring, utility meter billing analysis, computer simulations, mathematical models, and agreed-upon stipulations by the customer and the energy service company. [L 1986, c 72, §1; am L 1989, c 275, §1; am L Sp 1993, c 8, §54; am L 1997, c 192, §1; am L 2000, c 158, §1; am L 2004, c 98, §1; am L 2019, c 144, §3]

HRS §36-42 Vehicle fleet performance contracts for vehicle fleet energy efficiency programs

36-42. Vehicle fleet performance contracts for vehicle fleet energy efficiency programs (a) All agencies shall identify and evaluate vehicle fleet energy efficiency programs that the agency may implement using vehicle fleet performance contracts. (b) Any agency may enter into a multi-year vehicle fleet performance contract for the purpose of undertaking or implementing a vehicle fleet energy efficiency program and acquiring vehicles, vehicle fleets, necessary vehicle charging or fueling infrastructure, and renewable energy systems that supply charging or fueling infrastructure. (c) Any agency evaluating and implementing an energy performance contract under section 36-41 may incorporate vehicle fleet operational and fuel cost-savings measures into that energy performance contract; provided that these measures comply with the contracting provisions for vehicle fleet performance contracts provided for in subsection (e)(6), (7), and (8). (d) A vehicle fleet performance contract for vehicle fleet energy efficiency may include financing options, including leasing, lease-purchase, financing agreements, third-party joint ventures, guaranteed-savings plans, vehicle or vehicle fleet service contracts, or any combination thereof. Except as otherwise provided by law, the agency that is responsible for a particular vehicle fleet shall review and approve vehicle fleet performance contract arrangements. (e) Notwithstanding any law relating to the award of public contracts to the contrary, any agency desiring to enter into a vehicle fleet performance contract, pursuant to this section, shall comply with the following: (1) The agency shall issue a public request for proposals, advertised in the same manner as provided in chapter 103D, concerning the provision of the vehicle fleet or the design, operation, and maintenance of a vehicle fleet energy efficiency program, fleet vehicles, necessary charging or fueling infrastructure, or renewable energy systems that supply charging or fueling infrastructure; provided that the request for proposals shall contain terms and conditions relating to the submission of proposals, evaluation and selection of proposals, financial terms, legal responsibilities, and any other matters as may be required by law or determined by the agency to be appropriate; (2) Upon receiving responses to the request for proposals pursuant to paragraph (1), the agency may select the most qualified proposal or proposals on the basis of the experience and qualifications of the proposers, technical approach, financial arrangements, overall benefits to the agency, and any other factors determined by the agency to be relevant and appropriate; (3) The agency may negotiate and enter into a vehicle fleet performance contract with the person or company whose proposal is selected as the most qualified based on the criteria established by the agency pursuant to paragraph (2); (4) The term of the vehicle fleet performance contract shall not exceed twenty years; (5) The vehicle fleet performance contract shall contain the following annual allocation dependency clause: "The continuation of this contract is contingent upon the appropriation of funds to fulfill the requirements of the contract by the applicable funding authority. If that authority fails to appropriate sufficient funds to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which allocations were made"; (6) The agency may include in the vehicle fleet performance contract a requirement that the agency shall ultimately receive title to the vehicles, vehicle charging and fueling infrastructure, and renewable energy systems that supply charging or fueling infrastructure being financed under the contract; (7) The agency shall include in the vehicle fleet performance contract a requirement that the total annual payments for vehicle fleet operational and fuel cost-savings measures shall not exceed total vehicle fleet operational and fuel cost savings achieved by the implementation of the measures; (8) For any guaranteed-savings plan, the payment obligation for each year of the contract, including the year of acquisition, shall be guaranteed by the private sector person or company to be less than the annual vehicle fleet operational and fuel cost savings attributable under the contract to the vehicles and necessary charging or fueling infrastructure; provided that this guarantee, at the option of the agency, shall be a bond or insurance policy, or other type of guarantee determined by the agency to be sufficient to provide a similar level of assurance to that of a bond or insurance policy; and provided further that, if the actual annual verified savings are less than the annual amount guaranteed by the vehicle fleet company, the vehicle fleet company, within thirty days of being invoiced, shall pay the agency, or cause the agency to be paid, the difference between the guaranteed amount and the actual verified amount; and (9) No vehicle, vehicle fleet, vehicle charging or fueling infrastructure, or renewable energy system contracted for or procured under a vehicle fleet performance contract shall qualify for or claim a state tax credit, state rebate, or other state financial incentive of any kind. (f) For the purposes of this section: "Agency" means any executive department, independent commission, board, bureau, office, or other establishment of the State or any county government, the judiciary, the University of Hawaii, or any quasi-public institution that is supported in whole or in part by state or county funds. "Energy performance contract" shall have the same meaning as in section 36-41. "Financing agreement" shall have the same meaning as in section 37D-2. "Guaranteed-savings plan" means an agreement under which a private sector person or company undertakes to design, operate, and maintain a vehicle fleet energy efficiency program and related vehicle fleet operational and fuel cost-savings measures for an agency and the agency agrees to pay a contractually specified amount of verified vehicle fleet operational and fuel cost savings. "Vehicle" means every device in, upon, or by which any person or property is or may be transported or drawn upon a highway. "Vehicle fleet operational and fuel cost savings" means a measurable decrease in the operational and maintenance costs of vehicles that is associated with fuel or maintenance based on higher efficiency ratings or alternative fueling methods, including but not limited to savings from the reduction in maintenance requirements and a reduction in or the elimination of projected fuel purchase expenses as a direct result of investment in electric or alternative fuel vehicles, vehicle charging or fueling infrastructure, and renewable energy systems that supply vehicle charging or fueling infrastructure. "Vehicle fleet operational and fuel cost-savings measure" means any acquisition, installation, modification, or service that is designed to reduce energy consumption and related operating costs in vehicles and includes the following: (1) Vehicle purchase or lease costs, either in full or in part; and (2) Charging or fueling infrastructure, including renewable energy systems that supply this infrastructure, necessary to charge or fuel alternative fuel vehicles included in a vehicle fleet performance contract. "Vehicle fleet performance contract" means an energy performance contract, shared-savings contract, or any other agreement in which vehicle fleet operational and fuel cost savings are used to pay for the cost of vehicles or associated capital investments in charging or fueling infrastructure. "Verified" means the technique used in the determination of baseline vehicle fleet operational and fuel costs, post-vehicle fleet energy efficiency program vehicle fleet operational and fuel costs, and vehicle fleet operational and fuel cost savings, including engineering calculations, metering and monitoring, meter analysis, computer simulations, mathematical models, and agreed-upon stipulations by the customer and the vehicle fleet company. [L 2019, c 144, §2]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0036/HRS_0036-.htmFetched: 11/10/2026