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GM 1317

Informing the Legislature that on June 25, 2025, the Governor signed the following bill into law: HB1424 HD1 SD1 CD1 (ACT 215).

2025 Regular Session

Act 215 requires annual, Finance-led reporting on how appropriations fund operating expenses vs. positions, boosting transparency and accountability.

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Bill Summary · GM 1317

Summary of GM1317 – Proclamation Informing Enactment of HB1424 (Act 215)

What GM1317 is

  • A proclamation from the Governor to inform the Legislature that HB1424, HD1, SD1, CD1, relating to appropriations, was signed into law on June 25, 2025 as Act 215.
  • Act 215 corresponds to HB1424 and implements new legislative oversight related to the use of appropriated funds.
  • Effective date: The Act takes effect upon approval (June 25, 2025).

Purpose and intent

  • The Act aims to increase legislative oversight to ensure that funds appropriated by the Legislature are used for their intended purposes.
  • It addresses concerns about vacancy rates in state employment and the transfer or use of funds for operating expenses in ways that may not align with the original appropriation.

Key provisions and changes

  • New statutory requirement added to Hawaii Revised Statutes, Chapter 37:
    • Section designates a new reporting requirement titled “expenses; report.”
    • The Director of Finance must submit an annual report to the Legislature no later than 60 days after the end of each fiscal year.
  • Required contents of the annual report:
    1. Identify all positions funded by appropriations intended for operating expenses (including but not limited to equipment and motor vehicles).
    2. Identify operating expenses funded by appropriations intended for filling positions during the preceding fiscal year.
    3. Include, if applicable, a list of departments that failed to provide information necessary to complete the report.
  • The section emphasizes transparency around transfers of funds and the use of funds originally appropriated for positions versus operating expenses.

Who/what is affected

  • State government entities that receive appropriations, including:
    • Departments and agencies funded through operating expense lines and personnel/funding for positions.
  • The Director of Finance is the responsible official for compiling and submitting the annual report.
  • The Legislature relies on these annual reports to assess alignment between appropriations and actual spending.

Procedural and timeline aspects

  • Timing: Annual report due within 60 days after the end of each fiscal year (Hawaii’s fiscal year ends June 30).
  • Departmental accountability: Departments failing to provide required information may appear in the report as noncompliant.

Context and background (contextual findings in the bill)

  • For Fiscal Year 2025, the executive branch requested about $3.6 billion in funding for more than 47,000 permanent and 3,600 temporary positions.
  • The bill notes a high vacancy rate (about 24% of civil service positions as of December 2024) and acknowledges that funds may be transferred or used for purposes not aligned with the original appropriation.
  • The findings underscore a need for enhanced oversight to ensure appropriations are used as intended.

Bottom line

  • Act 215 enhances fiscal transparency by mandating annual reporting on how funds are allocated between operating expenses and employee positions, and by identifying departments that do not provide required information. The goal is to improve accountability and ensure appropriations are utilized for their intended purposes.

Compiled from official sources — confirm details with the bill’s official record.

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