Hawaii 2022 Regular Session

Hawaii Senate Bill SB3332 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 3332 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT relating to other post-employment benefits. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 3332
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	3332
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to other post-employment benefits.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2022-2023 to pay or prepay the State's other post-employment benefits liability; provided that: (1) The appropriation made for this transaction as authorized by this section shall not lapse at the end of the fiscal year for which the appropriation is made; (2) All moneys from the appropriation unencumbered as of June 30, 2024, shall lapse as of that date; (3) The general obligation bonds authorized by this section shall be issued in the sole discretion of the director of finance; provided that: (A) To determine the annual required contribution, a preliminary annual required contribution shall be developed that treats the outstanding bond balance as part of the plan's unfunded actuarial accrued liability. The net cash contribution required to be contributed to the plan shall equal the preliminary annual required contribution minus the bond repayment for the respective year; (B) Entities shall only be permitted to issue general obligation bonds if the all-in true interest cost of the bonds is at least three hundred basis points less than the assumed rate of return of the system the proceeds will be contributed to; (C) General obligation bonds shall not be issued as a means for addressing budget shortfalls related to contributions required by law; and (D) General obligation bonds may only be issued as a means to produce long-term savings. SECTION 2. This Act shall take effect on July 1, 2022. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2022-2023 to pay or prepay the State's other post-employment benefits liability; provided that:
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51	51	(1) The appropriation made for this transaction as authorized by this section shall not lapse at the end of the fiscal year for which the appropriation is made;
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53	53	(2) All moneys from the appropriation unencumbered as of June 30, 2024, shall lapse as of that date;
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55	55	(3) The general obligation bonds authorized by this section shall be issued in the sole discretion of the director of finance; provided that:
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57	57	(A) To determine the annual required contribution, a preliminary annual required contribution shall be developed that treats the outstanding bond balance as part of the plan's unfunded actuarial accrued liability. The net cash contribution required to be contributed to the plan shall equal the preliminary annual required contribution minus the bond repayment for the respective year;
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59	59	(B) Entities shall only be permitted to issue general obligation bonds if the all-in true interest cost of the bonds is at least three hundred basis points less than the assumed rate of return of the system the proceeds will be contributed to;
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61	61	(C) General obligation bonds shall not be issued as a means for addressing budget shortfalls related to contributions required by law; and
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63	63	(D) General obligation bonds may only be issued as a means to produce long-term savings.
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65	65	SECTION 2. This Act shall take effect on July 1, 2022.
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69	69	INTRODUCED BY: _____________________________
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71	71	INTRODUCED BY:
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75	75	_____________________________
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77	77	Report Title: GO Bonds; Other Post-employment Benefits Liability Description: Authorizes GO bonds for the payment or prepayment of other post-employment benefits liability. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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83	83	Report Title:
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85	85	GO Bonds; Other Post-employment Benefits Liability
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89	89	Description:
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91	91	Authorizes GO bonds for the payment or prepayment of other post-employment benefits liability.
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99	99	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.