REPORT TITLE:
Higher Ed


DESCRIPTION:
Allows UH to carry over funds from one year to the next.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2062 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                        
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HIGHER EDUCATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The state constitution established the
 
 2 University of Hawaii as a "body corporate."  Recognizing this
 
 3 special status, the legislature has provided the university with
 
 4 more flexibility in managing its resources than typical state
 
 5 agencies.
 
 6      The purpose of this Act is to extend the flexibility of the
 
 7 university to manage its resources by enabling the university to
 
 8 carry over unexpended funds from one fiscal period to the next.
 
 9 This authority is similar to that currently extended to the
 
10 department of education.
 
11      SECTION 2.  Chapter 37, Hawaii Revised Statutes, is amended
 
12 by adding a new section to be appropriately designated and to
 
13 read as follows:
 
14      "§37-     University of Hawaii; carryover of funds.  (a)
 
15 The University of Hawaii may retain any appropriation of general
 
16 funds for operating purposes at the close of a fiscal year.  The
 
17 funds retained shall not lapse until June 30 of the following
 
18 fiscal year.
 
19      (b)  Any appropriation retained in accordance with this
 

 
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 1 section may be used by the university to supplement the
 
 2 appropriation for any university program.
 
 3      (c)  The university shall submit a report for each fiscal
 
 4 year identifying the amount of funds to be carried over for each
 
 5 appropriation to:
 
 6      (1)  The director of finance no later than thirty days after
 
 7           the close of the fiscal year for which the report is
 
 8           being made; and
 
 9      (2)  The legislature no later than twenty days prior to the
 
10           convening of the following regular session of the
 
11           legislature."
 
12      SECTION 3.  Section 37-32, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§37-32  Quarterly allotment periods.  Except as provided in
 
15 [section] sections 37-41.5[,] and 37-  , no officer, department,
 
16 or establishment shall expend or be allowed to expend during any
 
17 fiscal year any sum for any purpose not specifically authorized
 
18 by the legislature for expenditure during that particular fiscal
 
19 year, and not made available pursuant to the allotment system
 
20 provided for in sections 37-31 to 37-41.  For the purposes of the
 
21 allotment system, each fiscal year shall be divided into four
 
22 quarterly allotment periods, beginning, respectively, on the
 
23 first days of July, October, January, and April; provided that in
 

 
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 1 any case where the quarterly allotment period is impracticable,
 
 2 the director of finance may prescribe a different period suited
 
 3 to the circumstances, not exceeding six months nor extending
 
 4 beyond the end of the fiscal year."
 
 5      SECTION 4.  Section 37-41, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§37-41  Appropriations to revert to state treasury;
 
 8 exceptions.  Unless otherwise provided by [section] sections
 
 9 37-41.5 and 37-   , or any other law, every appropriation or part
 
10 thereof of any kind made subject to sections 37-31 to 37-40,
 
11 remaining unexpended and unencumbered at the close of any fiscal
 
12 year shall lapse and be returned to the general fund in the
 
13 manner prescribed in section 40-66."
 
14      SECTION 5.  Section 37-42, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§37-42  Allotment as limit of expenditures; liability for
 
17 excessive expenditure.  [No] (a)  Except for the University of
 
18 Hawaii, no department or establishment shall expend or be allowed
 
19 to expend any sum, or incur or be allowed to incur any obligation
 
20 in excess of an allotment.  No obligation incurred in excess of
 
21 the balance of an allotment shall be binding against the State,
 
22 but where the obligation is violative only for having been made
 
23 in excess of an allotment, the director of finance may authorize
 

 
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 1 payment thereof from unallotted funds.  Any officer, employee, or
 
 2 member of any department or establishment, who makes or causes to
 
 3 be made any excessive expenditure or incurs or causes to be
 
 4 incurred any excessive obligation shall be deemed guilty of
 
 5 neglect of official duty and shall be subject to removal from
 
 6 office and shall be liable to the State for such sum as may have
 
 7 been expended or paid, and such sum, together with interest and
 
 8 costs, shall be recoverable in an action instituted by the
 
 9 attorney general.
 
10      [Provided that any] (b)  Any state department, with the
 
11 prior consent of the governor and of the director, and subject to
 
12 terms and conditions insuring protection of the State as shall be
 
13 imposed by the department, may cosponsor with another state
 
14 department or with the county or any agency thereof, for the
 
15 purpose of applying for federal funds or assistance for any
 
16 project, after certification by the state comptroller that proper
 
17 and sufficient allotment has been made by the governor to the
 
18 other department or after receipt of resolution adopted by the
 
19 county council that proper and sufficient sums for the project
 
20 have been appropriated and encumbered."
 
21      SECTION 6.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 
23      SECTION 7.  This Act shall take effect on July 1, 2000 and
 

 
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 1 shall be repealed on June 30, 2002; provided that sections 37-32,
 
 2 37-41, and 37-42, Hawaii Revised Statutes, are reenacted in the
 
 3 form in which they read on June 30, 2000.
 
 4 
 
 5                           INTRODUCED BY:  _______________________