Informing the Legislature that on June 25, 2025, the Governor signed the following bill into law: SB326 SD1 HD1 CD1 (ACT 223).

This bill (SB326) establishes new requirements for state revolving funds in Hawaii. It mandates that such funds must clearly serve a need, link user charges directly to program benefits, be used only when essential, and be financially self-sustaining without relying on general fund appropriations. State agencies creating or maintaining revolving funds must now demonstrate these criteria through detailed planning and annual financial projections. The law aims to prevent revolving funds from becoming a substitute for standard budgeting processes while ensuring they remain necessary and sustainable.