§37-36 Modification. (a) The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:

(1) For the University of Hawaii, the director of finance may modify or amend any previous allotment only upon application of or notice to the university, and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;

(2) The modification or amendment shall be made only to avoid an illegal result or in anticipation of a revenue shortfall;

(3) No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; and

(4) No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds.

(b) Prior to the implementation of any modification in allotment proposed by the director of finance pursuant to subsection (a), in which the sum of the modifications exceed 2.5 per cent of the total general fund appropriation made by the legislature in any fiscal year, the director shall notify the president of the senate, the speaker of the house of representatives, and the chairpersons of the senate committee on ways and means and the house of representatives committee on finance, respectively, of the director's intent. [L Sp 1959 1st, c 12, pt of §3; Supp, §35-24; HRS §37-36; gen ch 1985; am L 1986, c 320, §3; am L 1989, c 370, §2; am L 1992, c 294, §8; am L 1994, c 281, §§4, 7; am L 1995, c 11, §21; am L 1996, c 285, §1]