Criteria for the establishment and continuance of revolving funds
HRS §37-52.4
in effect37-52.4. Criteria for the establishment and continuance of revolving funds
Revolving funds shall only be established pursuant to an act of the legislature. The legislature, in establishing or reviewing a revolving fund to determine whether it should be continued, shall ensure that the revolving fund:
(1) Serves a need, as demonstrated by:
(A) The purpose of the program to be
supported by the fund;
(B) The scope of the program, including
financial information on fees to be charged, sources of projected revenue, and
costs; and
(C) An explanation of why the program cannot
be implemented successfully under the general fund appropriation process;
(2) Reflects a clear nexus between the benefits
sought and charges made upon the program users or beneficiaries or a
clear link between the program and the sources of revenue, as opposed to
serving primarily as a means to provide the program or users with an automatic
means of support that is removed from the normal budget and appropriation
process;
(3) Provides an appropriate means of financing for
the program or activity that is used only when essential to the successful
operation of the program or activity; and
(4) Demonstrates the capacity to be financially
self-sustaining.
[L 2002, c 178, pt of §2; am L 2013, c 130, §5]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0037/HRS_0037-0052_0004.htmFetched: 11/10/2026