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GM 1199

Informing the Legislature that on June 5, 2026, the Governor signed the following bill into law: HB2275 HD1 SD2 CD2 (ACT 099).

2026 Regular Session

Provides targeted funding for select state agencies and mass transit, and creates a temporary, reportable framework for rapid transfers from a major disaster fund during emergencie

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Bill Summary · GM 1199

Overview

GM 1199 (HB 2275, HD 1, SD 2, CD 2) is a Hawaii-enacted measure approved June 5, 2026 as Act 099. The act focuses on funding adjustments for state programs, disaster recovery financing, and related governance around emergency expenditures and reporting. It consists of three parts: general funding adjustments for selected state programs, funding for disaster recovery and major disaster response, and a governance framework for temporary reallocations during emergencies.

Main purpose and intent

  • To appropriate funds to specific state programs and agencies to offset operational costs.
  • To establish and fund a major disaster relief framework, including potential transfers to address disaster recovery and response costs.
  • To authorize limited, time-bound transfers of major disaster funds to other state agencies when addressing imminent threats, with required reporting and sunset provisions.

Key provisions and changes

Part I – Funding adjustments for state programs

  • Appropriates general revenues for fiscal year 2026-2027 to:
    • Agribusiness Development Corporation: $4,762,987 (for operations)
    • Hawaii Technology Development Corporation: $2,592,854 (for operations)
    • Hawaii Community Development Authority: $984,450 (for operations)
  • Mass Transit Special Fund: $600,000,000 (for fiscal year 2026-2027) to the Department of Budget and Finance for disbursements under section 248-2.7, Hawaii Revised Statutes.

Part II – Disaster funding and governance

  • Major Disaster Fund: $100,000,000 (general revenues) for fiscal year 2026-2027 to be deposited into the major disaster fund (as established by statute).
  • Major Disaster Fund: $100,000,000 (from the fund) for fiscal year 2026-2027 to address disaster recovery and response costs, administered by the Hawaii Emergency Management Agency.
  • Administrative authority for fund transfers:
    • Governor may authorize transfers of up to $100,000,000 from the major disaster fund to other state agencies to address disaster recovery needs.
    • Written determination required to justify transfers, with details including date, amount, program ID, and purpose.
    • Transferred funds must be reported to the legislature within five days of each transfer (or as soon as practicable under exigent circumstances) and must include a detailed justification.
    • Funds not expended for the intended disaster purpose lapse back to the general fund on June 30, 2027.
    • Governor must provide the legislature a summary report no later than 30 days before the 2027 regular session, detailing each use of this authority for the prior year (Dec 1–Nov 30).
    • Reallocations are to be limited in scope and duration and terminate when the emergency ends or by legislative action.

Part III – Effective date

  • The act takes effect on July 1, 2026.

Who would be affected

  • State agencies receiving program-operational appropriations:
    • Agribusiness Development Corporation
    • Hawaii Technology Development Corporation
    • Hawaii Community Development Authority
  • Mass transit-related projects and disbursements under the Mass Transit Special Fund (via the Department of Budget and Finance)
  • Hawaii Emergency Management Agency and related disaster response/recovery activities
  • Hawaii state government and, notably, the Legislature (via reporting and notification requirements)

Procedural and timeline aspects

  • Effective date: July 1, 2026.
  • Major disaster funding and potential transfers are authorized for fiscal year 2026-2027.
  • Transfers require written determinations and must be reported to the Legislature within five days (or as soon as practicable).
  • Unexpended transferred funds lapse to the general fund on June 30, 2027.
  • A summary report to the Legislature is due no later than 30 days prior to the 2027 regular session, detailing uses of the transfer authority in the prior year.

Summary in plain language

HB 2275, as enacted, provides targeted funding increases for several state agencies to support operating costs, establishes a large $600 million infusion for mass transit-related activities, and creates a robust framework for rapid, temporary reallocations from a major disaster fund during emergencies. It requires detailed reporting to the Legislature on any such transfers and limits the duration and scope of reallocations, with funds reverting to the general fund if unused by the end of June 2027. The act aims to enhance operational capacity for key programs and ensure responsive, accountable disaster funding mechanisms.

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

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