REPORT TITLE:
UH


DESCRIPTION:
Creates a separate budget preparation and submission process for
the University of Hawaii.  Recognizes the University of Hawaii as
a state agency apart from the executive branch.  Removes
University of Hawaii employees from the state civil service
system.  Changes the appointment process for the board of
regents.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2842
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE UNIVERSITY OF HAWAII.



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

 1      SECTION 1.  The purposes of this Act are to:
 
 2      (1)  Provide the University of Hawaii with greater autonomy
 
 3           from the executive branch;
 
 4      (2)  Vest greater power and responsibility for administering
 
 5           the University of Hawaii in its board of regents; and
 
 6      (3)  Revise the process of appointing and retaining members
 
 7           of the board of regents to provide greater input from
 
 8           the University of Hawaii community.
 
 9      SECTION 2.  Chapter 304, Hawaii Revised Statutes, is amended
 
10 by adding two new sections to be appropriately designated and to
 
11 read as follows:
 
12      "§304-    Administration; budget preparation and submission.
 
13 (a)  The board of regents shall make an annual report to the
 
14 legislature, at each regular session thereof, of the business of
 
15 the University of Hawaii and of the administration of the
 
16 university system throughout the State.  The board of regents
 
17 shall present to the legislature a unified budget, six-year
 
18 program and financial plan, and variance report for all of the
 
19 colleges, departments, and programs of the University of Hawaii.
 

 
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 1 The president of the university, who shall be appointed by the
 
 2 board of regents, shall direct the administration of the
 
 3 University of Hawaii and be responsible for the efficient
 
 4 operation of all of its colleges, departments, and programs.
 
 5      (b)  The president of the university shall have the power
 
 6 to:
 
 7      (1)  Prescribe for all of the colleges, departments, and
 
 8           programs, a uniform system of keeping and periodically
 
 9           reporting statistics concerning their business;
 
10      (2)  Obtain from all of the colleges, departments, and
 
11           programs, estimates for their proposed appropriations;
 
12           with the cooperation of the representatives of the
 
13           colleges, departments, and programs concerned, to
 
14           review and revise the estimates as the president deems
 
15           necessary for the equitable provision of resources to
 
16           the various colleges, departments, or programs
 
17           according to their needs; and to present the estimates,
 
18           as reviewed and revised by the board of regents, to the
 
19           legislature as collectively constituting a unified
 
20           budget for all of the University of Hawaii;
 
21      (3)  Exercise exclusive authority over the preparation,
 
22           explanation, and administration of the University of
 
23           Hawaii budget, programs, plans, and expenditures,
 

 
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 1           including without limitation policies and practices of
 
 2           financial administration and the establishment of
 
 3           guidelines as to permissible expenditures; provided
 
 4           that all expenditures of the University of Hawaii shall
 
 5           be in conformance with program appropriations and
 
 6           provisions established by the legislature; and
 
 7      (4)  Do all other acts that may be necessary or appropriate
 
 8           for the administration of the University of Hawaii.
 
 9      (c)  The budget, six-year program and financial plan, and
 
10 the variance report of the University of Hawaii shall be
 
11 submitted by the board of regents to the legislature in
 
12 accordance with the schedule of submission specified for the
 
13 governor in chapter 37 and shall contain the program information
 
14 prescribed in that chapter.  By November 1 of each year preceding
 
15 a legislative session in which a budget is to be submitted, the
 
16 board of regents shall provide written notification to the
 
17 governor of the proposed total expenditures, by cost categories
 
18 and sources of funding, and estimated revenues of the University
 
19 of Hawaii for each fiscal year of the next fiscal biennium.
 
20      §304-    Advisory selection commission; board of regents
 
21 nominees.  (a)  There is established in the University of Hawaii
 
22 for administrative purposes an advisory selection commission,
 
23 which shall provide the governor with nominees for membership on
 

 
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 1 the board of regents.  The commission shall consist of eleven
 
 2 commissioners who shall be appointed as follows:
 
 3      (1)  Two commissioners appointed by the governor;
 
 4      (2)  Two commissioners appointed by the speaker of the house
 
 5           of representatives;
 
 6      (3)  Two commissioners appointed by the president of the
 
 7           senate;
 
 8      (4)  One commissioner appointed by the faculty senate of the
 
 9           University of Hawaii;
 
10      (5)  One commissioner appointed by the board of regents;
 
11      (6)  One commissioner appointed by the Associated Students
 
12           of the University of Hawaii; and
 
13      (7)  One commissioner appointed by the Western Interstate
 
14           Commission for Higher Education.
 
15 Each commissioner shall serve on the advisory selection
 
16 commission for a term of four years; provided that any
 
17 commissioner may be removed and replaced at the discretion of the
 
18 appointing entity.  The advisory selection commission shall elect
 
19 one of the commissioners to serve as chairperson.
 
20      (b)  Whenever a vacancy occurs in the membership of the
 
21 board of regents, the advisory selection commission shall convene
 
22 to solicit and interview potential nominees, and to produce a
 
23 list of five nominees for each opening on the board of regents.
 

 
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 1 The advisory selection commission shall forward its list of
 
 2 nominees to the governor within thirty days of the opening of the
 
 3 position.  The governor may consider the list of nominees
 
 4 submitted by the advisory selection commission in making his
 
 5 nomination and appointment to the board of regents.  The
 
 6 governor's power of appointment shall not be limited by the
 
 7 actions of the commission.  All actions of the commission shall
 
 8 be deemed to be advisory.
 
 9      (c)  Proceedings of the advisory selection commission
 
10 regarding the selection of nominees shall be confidential and
 
11 shall not be subject to section 92-3 on open meetings.  Persons
 
12 not selected as nominees are not precluded from being solicited,
 
13 interviewed, and selected as nominees for future openings on the
 
14 board of regents.
 
15      (d)  The commissioners shall serve without pay but shall be
 
16 reimbursed for expenses, including traveling expenses, incurred
 
17 in the performance of their duties."
 
18      SECTION 3.  Section 26-4, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§26-4 Structure of government.  Under the supervision of
 
21 the governor, all executive and administrative offices,
 
22 departments, and instrumentalities of the state government and
 
23 their respective functions, powers, and duties shall be allocated
 

 
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 1 among and within the following principal departments that are
 
 2 hereby established:
 
 3      (1)  Department of human resources development (Section
 
 4           26-5)
 
 5      (2)  Department of accounting and general services (Section
 
 6           26-6)
 
 7      (3)  Department of the attorney general (Section 26-7)
 
 8      (4)  Department of budget and finance (Section 26-8)
 
 9      (5)  Department of commerce and consumer affairs (Section
 
10           26-9)
 
11      (6)  Department of taxation (Section 26-10)
 
12     [(7)  University of Hawaii  (Section 26-11)
 
13      (8)] (7)  Department of education (Section 26-12)
 
14     [(9)] (8)  Department of health (Section 26-13)
 
15    [(10)] (9)  Department of human services (Section 26-14)
 
16    [(11)] (10)  Department of land and natural resources (Section
 
17           26-15)
 
18    [(12)] (11)  Department of agriculture (Section 26-16)
 
19    [(13)] (12)  Department of Hawaiian home lands (Section 26-17)
 
20    [(14)] (13)  Department of business, economic development, and
 
21           tourism (Section 26-18)
 
22    [(15)] (14)  Department of transportation (Section 26-19)
 
23    [(16)] (15)  Department of labor and industrial relations
 

 
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 1           (Section 26-20)
 
 2    [(17)] (16)  Department of defense (Section 26-21)
 
 3    [(18)] (17)  Department of public safety (Section 26-14.6)"
 
 4      SECTION 4.  Section 26-11, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a)  The University of Hawaii shall be headed by an
 
 7 executive board to be known as the board of regents.
 
 8      [The board shall consist of twelve members.  No more than
 
 9 six of the members shall be members of the same political party
 
10 and at least part of the membership of the board shall represent
 
11 geographic subdivisions of the State.]  At least one member shall
 
12 be a University of Hawaii student at the time of the initial
 
13 appointment.  [This member may be reappointed for one additional
 
14 term even though the member may no longer be a student at the
 
15 time of reappointment.]
 
16      The board shall have power, in accordance with the
 
17 Constitution of the State and with law, to formulate policy, and
 
18 to exercise control over the university through its executive
 
19 officer, the president of the university.  The board shall have
 
20 exclusive jurisdiction over the internal organization and
 
21 management of the university."
 
22      SECTION 5.  Section 26-25, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      "[[]§26-25[]]  Services to the judiciary [and],
 
 2 legislature[.], and the University of Hawaii.  Any executive
 
 3 department may provide services to the judiciary [and], the
 
 4 legislature, and the University of Hawaii, but nothing in this
 
 5 part and this chapter shall be construed as granting any
 
 6 authority to the governor or any department to exercise control
 
 7 over the organization, programs, functions, operations, and
 
 8 expenditures of the judiciary [and], the legislature[.], and the
 
 9 University of Hawaii."
 
10      SECTION 6.  Section 26-52, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§26-52  Department heads and executive officers.  The
 
13 salaries of the following state officers shall be as follows:
 
14      (1)  The salary of the superintendent of education shall be
 
15           $90,041 a year;
 
16     [(2)  The salary of the president of the University of Hawaii
 
17           shall be set by the board of regents;
 
18      (3)] (2)  The salaries of all department heads or executive
 
19           officers of the departments of accounting and general
 
20           services, agriculture, attorney general, budget and
 
21           finance, business, economic development, and tourism,
 
22           commerce and consumer affairs, Hawaiian home lands,
 
23           health, human resources development, human services,
 

 
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 1           labor and industrial relations, land and natural
 
 2           resources, public safety, taxation, and transportation
 
 3           shall be $85,302 a year; and
 
 4     [(4)] (3)  The salary of the adjutant general shall be
 
 5           $85,302 a year; provided that if this salary is in
 
 6           conflict with the pay and allowance fixed by the tables
 
 7           of the regular army or air force of the United States,
 
 8           the latter shall prevail."
 
 9      SECTION 7.  Section 37-92, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§37-92  Proposed general fund appropriations; executive
 
12 branch; judicial branch[.]; and University of Hawaii.  (a)  The
 
13 governor shall submit a plan of proposed appropriations for the
 
14 State to the legislature which shall accompany the state budget
 
15 in odd-numbered years and the supplemental budget in even-
 
16 numbered years.  The plan of proposed appropriations shall
 
17 include the executive budget, proposed grants to private
 
18 entities, and any specific appropriation measures to be proposed
 
19 by the executive branch, and estimates of the aggregate proposed
 
20 appropriations of the judicial and legislative branches of
 
21 government[.], and the University of Hawaii.  In any year in
 
22 which the plan of proposed appropriations from the general fund
 
23 exceeds the expenditure ceiling, the governor shall set forth the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 dollar amount, the rate by which the expenditure ceiling would be
 
 2 exceeded, and the reasons for proposing appropriations in excess
 
 3 of those allowed under the expenditure ceiling.
 
 4      (b)  The proposed appropriations from the general fund for
 
 5 each year of the biennium or each supplementary budget fiscal
 
 6 year for the executive and judicial branches and the University
 
 7 of Hawaii shall not be increased over the appropriations from the
 
 8 general fund for the preceding fiscal year for each branch[,] and
 
 9 the University of Hawaii, respectively, by more than the state
 
10 growth, except as provided in this section.  For purposes of this
 
11 subsection, the appropriations from the general fund for the
 
12 executive and judicial branches and the University of Hawaii
 
13 shall not include any appropriations representing amounts
 
14 authorized by the legislature under section 37-93(b).
 
15      (c)  The governor shall submit a plan of proposed
 
16 appropriations for the executive branch to the legislature which
 
17 shall accompany the state budget in odd-numbered years and the
 
18 supplemental budget in even-numbered years.  The plan of proposed
 
19 appropriations shall include the executive budget, proposed
 
20 grants to private entities, and any specific appropriation
 
21 measures to be proposed by the executive branch.
 
22      (d)  The budget documents presented by the governor to the
 
23 legislature shall include a statement or summary showing (1) the
 

 
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 1 total state personal income for each of the four calendar years
 
 2 immediately preceding the fiscal year for which appropriations
 
 3 from the state general fund are to be made, (2) the
 
 4 appropriations from the general fund for the previous fiscal
 
 5 year, (3) the appropriations from the general fund for the fiscal
 
 6 year in progress, and (4) the general fund expenditure ceiling
 
 7 for the fiscal year in progress and for the ensuing fiscal year
 
 8 or, when necessary, for each fiscal year of the ensuing biennium.
 
 9      (e)  The governor shall also include a statement or summary
 
10 showing (1) recommended appropriations from the general fund for
 
11 the executive branch for the ensuing fiscal year or fiscal
 
12 biennium, (2) actual appropriations from the general fund for the
 
13 executive branch plus any recommended appropriations from the
 
14 general fund for the executive branch for the fiscal year in
 
15 progress, (3) the appropriations from the general fund for the
 
16 executive branch for the previous fiscal year, and (4) the
 
17 general fund appropriation ceiling for the executive branch as
 
18 established by subsection (b) for the fiscal year in progress and
 
19 for the ensuing fiscal year or, when necessary, for each fiscal
 
20 year of the ensuing biennium.
 
21      (f)  The chief justice shall submit a plan of proposed
 
22 appropriations of the judicial branch to the legislature which
 
23 shall accompany the judiciary biennial budget in odd-numbered
 

 
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 1 years and the supplemental budget in even-numbered years.  The
 
 2 plan of proposed appropriations shall include the judiciary
 
 3 budget, proposed grants to private entities, and any specific
 
 4 appropriation measures to be proposed by the judicial branch.
 
 5      (g)  The budget documents presented by the chief justice to
 
 6 the legislature shall include a statement or summary showing (1)
 
 7 recommended appropriations from the general fund for the judicial
 
 8 branch for the ensuing fiscal year or fiscal biennium, (2) actual
 
 9 appropriations from the general fund for the judicial branch plus
 
10 any recommended appropriations from the general fund for the
 
11 judicial branch for the fiscal year in progress, (3) the
 
12 appropriations from the general fund for the judicial branch for
 
13 the previous fiscal year, and (4) the general fund appropriation
 
14 ceiling for the judicial branch as established by subsection (b)
 
15 for the fiscal year in progress and for the ensuing fiscal year
 
16 or, when necessary, for each fiscal year of the ensuing biennium.
 
17      (h)  The board of regents of the University of Hawaii shall
 
18 submit a plan of proposed appropriations of the University of
 
19 Hawaii to the legislature which shall accompany the University of
 
20 Hawaii biennial budget in odd-numbered years and the supplemental
 
21 budget in even-numbered years.  The plan of proposed
 
22 appropriations shall include the University of Hawaii budget,
 
23 proposed grants to private entities, and any specific
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 appropriation measures to be proposed by the board of regents of
 
 2 the University of Hawaii.
 
 3      (i)  The budget documents presented by the board of regents
 
 4 of the University of Hawaii to the legislature shall include a
 
 5 statement or summary showing (1) recommended appropriations from
 
 6 the general fund for the University of Hawaii for the ensuing
 
 7 fiscal year or fiscal biennium, (2) actual appropriations from
 
 8 the general fund for the University of Hawaii plus any
 
 9 recommended appropriations from the general fund for the
 
10 University of Hawaii for the fiscal year in progress, (3) the
 
11 appropriations from the general fund for the University of Hawaii
 
12 for the previous fiscal year, and (4) the general fund
 
13 appropriation ceiling for the University of Hawaii as established
 
14 by subsection (b) for the fiscal year in progress and for the
 
15 ensuing fiscal year or, when necessary, for each fiscal year of
 
16 the ensuing biennium.
 
17      [(h)] (j)  The governor [or], the chief justice, or the
 
18 board of regents may propose appropriations from the general fund
 
19 for the executive or judicial branches[,] or the University of
 
20 Hawaii, respectively, in excess of those allowed by subsection
 
21 (b) if the governor [or], the chief justice, or the board of
 
22 regents sets forth the dollar amount and the percentage change in
 
23 excess of the appropriations allowed by subsection (b), and the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 reasons for proposing appropriations in excess of those allowed
 
 2 by subsection (b)."
 
 3      SECTION 8.  Section 37D-1, Hawaii Revised Statutes, is
 
 4 amended by amending the definition of "agency" to read as
 
 5 follows:
 
 6      ""Agency" means the judiciary, the University of Hawaii, any
 
 7 executive department, any independent commission, any board, any
 
 8 authority, any bureau, any office, any other establishment of the
 
 9 State (except the legislature and its agencies), or any public
 
10 corporation that is supported in whole or in part by state funds,
 
11 or any agent thereof, authorized by law to expend available
 
12 moneys."
 
13      SECTION 9.  Section 40-1, Hawaii Revised Statutes, is
 
14 amended by amending subsections (b) and (c) to read as follows:
 
15      "(b)  With respect to the executive branch, except [the
 
16 University of Hawaii and] the department of education, the
 
17 comptroller shall have complete supervision of all accounts.  The
 
18 comptroller shall preaudit all proposed payments of $10,000 or
 
19 more to determine the propriety of expenditures and compliance
 
20 with executive orders and rules that may be in effect.  When
 
21 necessary, the comptroller shall withhold approval of any
 
22 payment.  Whenever approval is withheld, the department or agency
 
23 concerned shall be promptly notified.  With respect to [the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 University of Hawaii and] the department of education, the
 
 2 comptroller shall issue warrants for the release of funds for the
 
 3 operating costs of [the university or] the department of
 
 4 education[, as applicable,] in amounts and at times mutually
 
 5 agreed upon by the governor or director of finance and the
 
 6 [university or] department of education[, as applicable];
 
 7 provided:
 
 8      (1)  The amounts released shall not exceed the allotment
 
 9           ceilings for the respective funding sources of [the
 
10           university's or] the department of education's
 
11           appropriations established by the governor for an
 
12           allotment period pursuant to section 37-34; and
 
13      (2)  The comptroller may issue warrants as an advance from
 
14           the state treasury to the University of Hawaii and the
 
15           department of education to establish a checking account
 
16           and provide working capital in amounts and at times
 
17           mutually agreed upon by the governor or director of
 
18           finance and the University of Hawaii and the department
 
19           of education.
 
20 The [University of Hawaii and the] department of education shall
 
21 preaudit all proposed payments to determine the propriety of
 
22 expenditures and compliance with applicable laws, executive
 
23 orders, and rules as may be in effect.  The [University of Hawaii
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 and the] department of education shall make disbursements for
 
 2 operating expenses from the amounts released by the comptroller
 
 3 and maintain records and documents necessary to support those
 
 4 disbursements at times mutually agreed upon by [the university
 
 5 president or] the superintendent of education[, as applicable,]
 
 6 and the comptroller; provided that when requested by the
 
 7 university or department of education, the comptroller shall make
 
 8 all disbursements for the [university or] department of
 
 9 education, as applicable, subject to available allotment.  Funds
 
10 released pursuant to this section shall be deposited by the
 
11 [university or] department of education[, as applicable,] in
 
12 accordance with the provisions applicable to the director of
 
13 finance by chapter 38.  Any interest earned on the deposit of
 
14 funds released pursuant to this section shall be deposited in the
 
15 state treasury at the end of each fiscal year.
 
16      (c)  With respect to the judiciary [and], the legislature,
 
17 and the University of Hawaii, the comptroller shall make
 
18 available to the judiciary [and], the legislature, and the
 
19 University of Hawaii the total amount appropriated to each,
 
20 except that the judiciary [and], the legislature, and the
 
21 University of Hawaii may request the comptroller's services in
 
22 maintaining custody of the amount appropriated to each and in
 
23 making payments therefrom.  When such services are requested, the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 comptroller shall make all disbursements requested by the
 
 2 judiciary [or], the legislature, or the University of Hawaii, but
 
 3 shall not make any disbursement for which no appropriation has
 
 4 been made or which would cause a specific appropriation to be
 
 5 exceeded."
 
 6      SECTION 10.  Section 40-2, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§40-2 Accounting systems and internal control; enforcing
 
 9 the use of and inspection of the same.  The accounting system
 
10 installed by the commission on public accountancy under Act 181,
 
11 Session Laws of Hawaii 1923, as amended by Act 220, Session Laws
 
12 of Hawaii 1925, for use in the offices of the comptroller,
 
13 director of finance, departmental and agency services of the
 
14 State, and the auditors, treasurers, departmental and agency
 
15 services of the several counties shall be the accounting and
 
16 reporting systems of the State and counties; provided [that the
 
17 University of Hawaii may install a different accounting system
 
18 which shall be in conformity with generally accepted accounting
 
19 principles as applied to colleges and universities; and provided
 
20 further] that the department of education may install a different
 
21 accounting system which shall be in conformity to generally
 
22 accepted accounting principles.  The comptroller shall make such
 
23 changes and modifications in the accounting system as shall from
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 time to time appear to be in the best interest of the State and
 
 2 counties.
 
 3      The departments and agencies of the executive branch are
 
 4 respectively charged with the responsibility to maintain an
 
 5 adequate system of internal control and with the further
 
 6 responsibility to see that the internal control system continues
 
 7 to function effectively as designed.  The comptroller shall make
 
 8 such investigations and audits from time to time to enforce the
 
 9 use of the accounting system and internal control systems in the
 
10 executive branch.
 
11      The judiciary, the legislature, the University of Hawaii,
 
12 and each county shall be responsible for the establishment and
 
13 maintenance of its respective internal control system."
 
14      SECTION 11.  Section 40-6, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§40-6 Approval of business and accounting forms.  The
 
17 comptroller shall determine the forms required to adequately
 
18 supply accounting and statistical data for the state government.
 
19 The comptroller shall require heads of departments and
 
20 establishments of the state government to submit proposed new
 
21 forms or proposed changes in current business and accounting
 
22 forms for review and approval before ordering the same printed;
 
23 except that [the University of Hawaii and] the department of
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 education shall be subject to this requirement only with respect
 
 2 to uniform business and accounting forms of statewide use in the
 
 3 State's accounting system.  All standard state forms shall be
 
 4 classified, numbered, and standardized in design, dimensions,
 
 5 color, and grade of paper and recorded in a catalogue of
 
 6 accounting and statistical forms by the comptroller."
 
 7      SECTION 12.  Section 40-51, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§40-51  Money drawn only on warrants.  Excepting moneys
 
10 paid for the redemption of bonds of the state debt, and the
 
11 interest coupons of the same, and for interest on overdue
 
12 warrants, and drafts against special deposits and for the
 
13 expenses of the legislature [and], the judiciary, and the
 
14 University of Hawaii, and payment authorized by the comptroller
 
15 by means of electronic funds transfers and through automated
 
16 clearinghouses for the purposes of implementing an electronic
 
17 benefits transfer system for the department of human services, no
 
18 money shall be drawn from or out of the treasury except upon
 
19 warrants, substantially in the form of section 40-52, issued from
 
20 the comptroller's office; provided that upon request, the
 
21 comptroller shall provide financial services involving the
 
22 issuance of warrants on behalf of the legislature [and], the
 
23 judiciary[.], and the University of Hawaii.  Every warrant shall
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 be signed by the comptroller or the comptroller's deputy or by
 
 2 means of any mechanical check signer that may be adopted by the
 
 3 comptroller, and shall be made payable upon such date as may be
 
 4 approved by the director of finance to the order of the person to
 
 5 whom the State is directly indebted."
 
 6      SECTION 13.  Section 40-58, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§40-58  In favor of assignees.  No assignment of moneys by
 
 9 a person to whom the State is directly indebted shall be
 
10 effective unless the assignment is first approved by the
 
11 comptroller or, in the case of [the University of Hawaii and] the
 
12 department of education, by [their] its respective chief
 
13 financial [officers.] officer.  The comptroller or the chief
 
14 financial [officers of the University of Hawaii and] officer of
 
15 the department of education may prescribe the form for an
 
16 assignment, and may approve the assignment within a reasonable
 
17 time period if, in their respective discretion, the rights or
 
18 obligations of the State[, the University of Hawaii,] or the
 
19 department of education under any contract or other undertaking
 
20 or under any law, rule, or order by a competent authority will
 
21 not be prejudiced thereby.  Upon approval of the assignment, the
 
22 comptroller or the [respective] chief financial [officers of the
 
23 University of Hawaii and] officer of the department of education
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 shall draw a warrant payable to the assignee.  Except as to
 
 2 contracts encumbered by the comptroller[, the University of
 
 3 Hawaii,] or the department of education, each expending agency,
 
 4 upon notification of the comptroller's approval of an assignment,
 
 5 shall prepare a claim for payment in accordance with the terms of
 
 6 the assignment."
 
 7      SECTION 14.  Section 40-81, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§40-81  Report by agencies receiving special moneys.  All
 
10 state officers, departments, boards, bureaus, commissions, or
 
11 agencies collecting or receiving any moneys not required by law
 
12 to be deposited in the state treasury shall report to the
 
13 comptroller all receipts and disbursements on account thereof for
 
14 each quarterly period of the calendar year not later than the
 
15 fifteenth day following the end of each quarterly period on such
 
16 forms and under such rules as may be prescribed by the
 
17 comptroller; provided that with respect to all moneys held
 
18 outside the state treasury by [the University of Hawaii or] the
 
19 department of education pursuant to the authority granted to [the
 
20 university and] the department of education by this chapter, [the
 
21 University of Hawaii and] the department of education shall
 
22 report to the comptroller all transactions for each quarterly
 
23 period not later than the fifteenth day following the end of each
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 quarterly period on such forms and under such rules as may be
 
 2 prescribed by the comptroller."
 
 3      SECTION 15.  Section 40-84, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§40-84  Petty cash funds; regulations.  Whenever the head
 
 6 of any state department, board, bureau, commission, or other
 
 7 agency deems it necessary to have a petty cash fund for the
 
 8 proper transaction of the business of the agency, a written
 
 9 application therefor shall be made to the comptroller setting
 
10 forth the details covering the purposes and uses of and for the
 
11 fund.  The comptroller, before issuing a state warrant for that
 
12 purpose, shall determine whether or not the business of the
 
13 agency warrants the establishment of such a fund, and if the
 
14 comptroller is satisfied that such a fund is necessary, the
 
15 comptroller shall issue a state warrant to such agency for an
 
16 amount as the comptroller shall determine, not to exceed the sum
 
17 of $100,000, except that this limitation of $100,000 shall not
 
18 apply to [the University of Hawaii and] the stadium authority.
 
19      The comptroller may prescribe such rules as the comptroller
 
20 may deem necessary for the proper administration and
 
21 accountability of these funds."
 
22      SECTION 16.  Section 76-4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      "§76-4 Agreements of state, county departments, judiciary,
 
 2 [and] the Hawaii health systems corporation[.], and the
 
 3 University of Hawaii.  The state department of human resources
 
 4 development, the judiciary, the several departments of civil
 
 5 service of the counties, [and] the Hawaii health systems
 
 6 corporation, and the University of Hawaii may enter into
 
 7 agreements for the joint administration of matters that may be
 
 8 practicable and consistent with this chapter and chapter 77,
 
 9 including the conducting of examinations and other procedures for
 
10 the establishment and use of eligible lists, reciprocity in the
 
11 use of eligible lists, and the conducting of salary studies.  All
 
12 eligible lists established or used under the agreements shall be
 
13 as fully effective as those established or used separately."
 
14      SECTION 17.  Section 76-5, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§76-5 Furnishing of services and facilities.  Subject to
 
17 the rules of the state department of human resources development,
 
18 the director of human resources development may enter into
 
19 agreements with the judiciary, any county, [and] the Hawaii
 
20 health systems corporation, and the University of Hawaii to
 
21 furnish services and facilities of the state department to the
 
22 judiciary, any county, [and] the Hawaii health systems
 
23 corporation, and the University of Hawaii in the administration
 

 
Page 24                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 of civil service including position classification in the
 
 2 judiciary, any county, [and] the Hawaii health systems
 
 3 corporation[.], and the University of Hawaii.  The agreements may
 
 4 provide for the reimbursement to the State of the reasonable
 
 5 value of the services and facilities furnished, as determined by
 
 6 the director.  The judiciary, all counties, and the Hawaii health
 
 7 systems corporation, and the University of Hawaii are authorized
 
 8 to enter into the agreements."
 
 9      SECTION 18.  Section 76-5.5, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§76-5.5  Recruitment flexibility for the counties, the
 
12 judiciary, [and] the Hawaii health systems corporation[.], and
 
13 the University of Hawaii.  Notwithstanding section 76-23, or any
 
14 other provision to the contrary, the directors of the county
 
15 departments of civil service, the administrative director of the
 
16 courts, [and] the Hawaii health systems corporation chief
 
17 executive officer's designee, and the designee of the president
 
18 of the University of Hawaii may determine, establish, and
 
19 maintain the manner in which positions shall be filled in
 
20 accordance with section 78-1 and the following standards:
 
21      (1)  Equal opportunity for all regardless of race, sex, age,
 
22           religion, color, ancestry, physical handicap, or
 
23           politics;
 

 
Page 25                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  First consideration for competent employees already
 
 2           within public service; and
 
 3      (3)  Impartial selection of the ablest person through
 
 4           competitive means which are fair, objective, and
 
 5           practical."
 
 6      SECTION 19.  Section 76-11, Hawaii Revised Statutes, is
 
 7 amended by amending the definition of "department" to read as
 
 8 follows:
 
 9     "(4)  "Department" includes the judicial branch, the
 
10           University of Hawaii, and any department, board,
 
11           commission, or agency of the State;"
 
12      SECTION 20.  Section 76-16, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§76-16  Civil service and exemptions.  The civil service to
 
15 which this part applies shall comprise all positions in the State
 
16 now existing or hereafter established and embrace all personal
 
17 services performed for the State, except the following:
 
18      (1)  Commissioned and enlisted personnel of the Hawaii
 
19           national guard as such, and positions in the Hawaii
 
20           national guard that are required by state or federal
 
21           laws or regulations or orders of the national guard to
 
22           be filled from those commissioned or enlisted
 
23           personnel;
 

 
Page 26                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  Positions filled by persons employed by contract where
 
 2           the director of human resources development has
 
 3           certified that the service is special or unique or is
 
 4           essential to the public interest and that, because of
 
 5           circumstances surrounding its fulfillment, personnel to
 
 6           perform the service cannot be obtained through normal
 
 7           civil service recruitment procedures.  Any such
 
 8           contract may be for any period not exceeding one year;
 
 9      (3)  Positions of a temporary nature needed in the public
 
10           interest where the need for the position does not
 
11           exceed one year, but before any person may be employed
 
12           to render the temporary service, the director shall
 
13           certify that the service is of a temporary nature and
 
14           that recruitment through normal civil service
 
15           recruitment procedures is not practicable;
 
16      (4)  Positions filled by the legislature or by either house
 
17           or any committee thereof;
 
18      (5)  Employees in the office of the governor and household
 
19           employees at Washington Place;
 
20      (6)  Positions filled by popular vote;
 
21      (7)  Department heads, officers, and members of any board,
 
22           commission, or other state agency whose appointments
 
23           are made by the governor or are required by law to be
 

 
Page 27                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           confirmed by the senate;
 
 2      (8)  Judges, referees, receivers, masters, jurors, notaries
 
 3           public, land court examiners, court commissioners, and
 
 4           attorneys appointed by a state court for a special
 
 5           temporary service;
 
 6      (9)  One bailiff for the chief justice of the supreme court
 
 7           who shall have the powers and duties of a court officer
 
 8           and bailiff under section 606-14; one secretary or
 
 9           clerk for each justice of the supreme court, each judge
 
10           of the intermediate appellate court, and each judge of
 
11           the circuit court; one secretary for the judicial
 
12           council; one deputy administrative director of the
 
13           courts; three law clerks for the chief justice of the
 
14           supreme court, two law clerks for each associate
 
15           justice of the supreme court and each judge of the
 
16           intermediate appellate court, one law clerk for each
 
17           judge of the circuit court, two additional law clerks
 
18           for the civil administrative judge of the circuit court
 
19           of the first circuit, two additional law clerks for the
 
20           criminal administrative judge of the circuit court of
 
21           the first circuit, one additional law clerk for the
 
22           senior judge of the family court of the first circuit,
 
23           two additional law clerks for the civil motions judge
 

 
Page 28                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           of the circuit court of the first circuit, two
 
 2           additional law clerks for the criminal motions judge of
 
 3           the circuit court of the first circuit, and two law
 
 4           clerks for the administrative judge of the district
 
 5           court of the first circuit; and one private secretary
 
 6           for the administrative director of the courts, the
 
 7           deputy administrative director of the courts, each
 
 8           department head, each deputy or first assistant, and
 
 9           each additional deputy, or assistant deputy, or
 
10           assistant defined in paragraph (16);
 
11     (10)  First deputy and deputy attorneys general, the
 
12           administrative services manager of the department of
 
13           the attorney general, one secretary for the
 
14           administrative services manager, an administrator and
 
15           any support staff for the criminal and juvenile justice
 
16           resources coordination functions, and law clerks;
 
17     (11)  Teachers, principals, vice-principals, district
 
18           superintendents, chief deputy superintendents, other
 
19           certificated personnel, and not more than twenty
 
20           noncertificated administrative, professional, and
 
21           technical personnel not engaged in instructional work
 
22           in the department of education, the special assistant
 
23           to the state librarian, one secretary for the special
 

 
Page 29                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           assistant to the state librarian, and members of the
 
 2           faculty of the University of Hawaii, including research
 
 3           workers, extension agents, personnel engaged in
 
 4           instructional work, and administrative, professional,
 
 5           [and] technical personnel, and classified staff of the
 
 6           university;
 
 7     (12)  Employees engaged in special, research, or
 
 8           demonstration projects approved by the governor;
 
 9     (13)  Positions filled by inmates, kokuas, patients of state
 
10           institutions, persons with severe physical or mental
 
11           handicaps participating in the work experience training
 
12           programs, and students and positions filled through
 
13           federally funded programs that provide temporary public
 
14           service employment such as the federal Comprehensive
 
15           Employment and Training Act of 1973;
 
16     (14)  A custodian or guide at Iolani Palace, the Royal
 
17           Mausoleum, and Hulihee Palace;
 
18     (15)  Positions filled by persons employed on a fee,
 
19           contract, or piecework basis, who may lawfully perform
 
20           their duties concurrently with their private business
 
21           or profession or other private employment and whose
 
22           duties require only a portion of their time, if it is
 
23           impracticable to ascertain or anticipate the portion of
 

 
Page 30                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           time to be devoted to the service of the State;
 
 2     (16)  Positions of first deputies or first assistants of each
 
 3           department head appointed under or in the manner
 
 4           provided in section 6, Article V, of the State
 
 5           Constitution; three additional deputies or assistants
 
 6           either in charge of the highways, harbors, and airports
 
 7           divisions or other functions within the department of
 
 8           transportation as may be assigned by the director of
 
 9           transportation, with the approval of the governor; four
 
10           additional deputies in the department of health, each
 
11           in charge of one of the following:  behavioral health,
 
12           environmental health, hospitals, and health resources
 
13           administration, including other functions within the
 
14           department as may be assigned by the director of
 
15           health, with the approval of the governor; an
 
16           administrative assistant to the state librarian; and an
 
17           administrative assistant to the superintendent of
 
18           education;
 
19     (17)  Positions specifically exempted from this part by any
 
20           other law; provided that all of the positions defined
 
21           by paragraph (9) shall be included in the position
 
22           classification plan;
 
23     (18)  Positions in the state foster grandparent program and
 

 
Page 31                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           positions for temporary employment of senior citizens
 
 2           in occupations in which there is a severe personnel
 
 3           shortage or in special projects;
 
 4     (19)  Household employees at the official residence of the
 
 5           president of the University of Hawaii;
 
 6     (20)  Employees in the department of education engaged in the
 
 7           supervision of students during lunch periods and in the
 
 8           cleaning of classrooms after school hours on a less
 
 9           than half-time basis;
 
10     (21)  Employees hired under the tenant hire program of the
 
11           housing and community development corporation of
 
12           Hawaii; provided that not more than twenty-six per cent
 
13           of the corporation's work force in any housing project
 
14           maintained or operated by the corporation shall be
 
15           hired under the tenant hire program;
 
16     (22)  Positions of the federally funded expanded food and
 
17           nutrition program of the University of Hawaii that
 
18           require the hiring of nutrition program assistants who
 
19           live in the areas they serve;
 
20     (23)  Positions filled by severely handicapped persons who
 
21           are certified by the state vocational rehabilitation
 
22           office that they are able to perform safely the duties
 
23           of the positions;
 

 
Page 32                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1     (24)  One public high school student to be selected by the
 
 2           Hawaii state student council as a nonvoting member on
 
 3           the board of education as authorized by the State
 
 4           Constitution;
 
 5     (25)  Sheriff, first deputy sheriff, and second deputy
 
 6           sheriff; and
 
 7     (26)  A gender and other fairness coordinator hired by the
 
 8           judiciary.
 
 9      The director shall determine the applicability of this
 
10 section to specific positions.
 
11      Nothing in this section shall be deemed to affect the civil
 
12 service status of any incumbent as it existed on July 1, 1955."
 
13      SECTION 21.  Section 77-1, Hawaii Revised Statutes, is
 
14 amended as follows:
 
15      1.  By amending the definition of "chief executive officer"
 
16 to read:
 
17      ""Chief executive officer" means the governor in the case of
 
18 the State, the chief justice of the supreme court in the case of
 
19 the judiciary, the chief executive officer in the case of the
 
20 Hawaii health systems corporation, the board of regents in the
 
21 case of the University of Hawaii, the mayor in the case of the
 
22 city and county of Honolulu or the counties of Hawaii, Maui, and
 
23 Kauai."
 

 
Page 33                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1      2.  By amending the definitions of "department" and
 
 2 "director" to read:
 
 3      ""Department" includes the judicial branch, the Hawaii
 
 4 health systems corporation, the University of Hawaii, and any
 
 5 department, board, commission, or agency of the State or any of
 
 6 its political subdivisions.
 
 7      "Director" means the director of human resources development
 
 8 in the case of the State, the administrative director of the
 
 9 courts in the case of the judiciary, the chief executive officer
 
10 in the case of the Hawaii health systems corporation, the
 
11 president in the case of the University of Hawaii, the director
 
12 of civil service in the case of the city and county of Honolulu,
 
13 or the respective personnel directors in the case of the counties
 
14 of Hawaii, Maui, and Kauai."
 
15      3.  By amending the definition of "fiscal officer" to read:
 
16      ""Fiscal officer" means the director of finance in the case
 
17 of the State, the administrative director of the courts in the
 
18 case of the judiciary, the chief executive officer in the case of
 
19 the Hawaii health systems corporation, the president in the case
 
20 of the University of Hawaii, the director of finance in the case
 
21 of the city and county of Honolulu and the counties of Hawaii,
 
22 Maui, and Kauai."
 
23      SECTION 22.  Section 78-51, Hawaii Revised Statutes, is
 

 
Page 34                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "§78-51  Applicability of chapter to the judiciary [and],
 
 3 the Hawaii health systems corporation[.], and the University of
 
 4 Hawaii.  All of the provisions of this chapter apply with equal
 
 5 force to the judiciary [and], the Hawaii health systems
 
 6 corporation, and the University of Hawaii as to the State.  The
 
 7 powers and duties assigned in this chapter shall, with respect to
 
 8 the judiciary, be assigned to the chief justice of the supreme
 
 9 court in the place and stead of the governor or chief executive
 
10 officer for the State, and to the administrative director of the
 
11 courts in the place and stead of the director of human resources
 
12 development.  The powers and duties assigned in this chapter,
 
13 with respect to the Hawaii health systems corporation, shall be
 
14 assigned to the chief executive officer of the Hawaii health
 
15 systems corporation in the place and stead of the governor or
 
16 chief executive officer for the State, and to the Hawaii health
 
17 systems chief executive officer's designee in the place and stead
 
18 of the director of human resources development.  The powers and
 
19 duties assigned in this chapter, with respect to the University
 
20 of Hawaii, shall be assigned to the board of regents of the
 
21 University of Hawaii in the place and stead of the governor or
 
22 chief executive officer for the State, and to the president of
 
23 the University of Hawaii in the place and stead of the director
 

 
Page 35                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 of human resources development."
 
 2      SECTION 23.  Section 79-31, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§79-31  Judiciary [and], the Hawaii health systems
 
 5 corporation[;], and the University of Hawaii; powers and duties.
 
 6 All of the powers and duties assigned in this chapter to the
 
 7 governor or the director of human resources development, with
 
 8 respect to the judiciary, shall be assigned to the chief justice
 
 9 of the supreme court or the administrative director of the
 
10 courts, and with respect to the Hawaii health systems
 
11 corporation, shall be assigned to the chief executive officer of
 
12 the Hawaii health systems corporation or designee[.], and with
 
13 respect to the University of Hawaii, shall be assigned to the
 
14 board of regents of the University of Hawaii or the president."
 
15      SECTION 24.  Section 80-21, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§80-21  Judiciary [and], the Hawaii health systems
 
18 corporation[;], and the University of Hawaii; powers and duties.
 
19 All of the powers and duties assigned in this chapter to the
 
20 governor or the department or director of human resources
 
21 development, with respect to the judiciary, shall be assigned to
 
22 the chief justice of the supreme court or the administrative
 
23 director of the courts, [and] with respect to the Hawaii health
 

 
Page 36                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 systems corporation, shall be assigned to the chief executive
 
 2 officer of the Hawaii health systems corporation or designee[.],
 
 3 and with respect to the University of Hawaii, shall be assigned
 
 4 to the board of regents of the University of Hawaii or the
 
 5 president."
 
 6      SECTION 25.  Section 81-21, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§81-21  Judiciary [and], the Hawaii health systems
 
 9 corporation[;], and the University of Hawaii; powers and duties.
 
10 All of the powers and duties assigned in this chapter to the
 
11 governor or the director of human resources development, with
 
12 respect to the judiciary, shall be exercised by the chief justice
 
13 of the supreme court or the administrative director of the
 
14 courts, [and] with respect to the Hawaii health systems
 
15 corporation, shall be assigned to the chief executive officer of
 
16 the Hawaii health systems corporation or designee[.], and with
 
17 respect to the University of Hawaii, shall be assigned to the
 
18 board of regents of the University of Hawaii or the president."
 
19      SECTION 26.  Section 82-6, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§82-6  Judiciary [and], the Hawaii health systems
 
22 corporation[;], and the University of Hawaii; powers and duties.
 
23 All of the powers and duties assigned in this chapter to the
 

 
Page 37                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 governor or the director of human resources development, with
 
 2 respect to the judiciary, shall be assigned to the chief justice
 
 3 of the supreme court or the administrative director of the
 
 4 courts[, and with].  With respect to the Hawaii health systems
 
 5 corporation, these duties shall be assigned to the chief
 
 6 executive officer of the Hawaii health systems corporation or a
 
 7 designee.  With respect to University of Hawaii, these duties
 
 8 shall be assigned to the board of regents of the University of
 
 9 Hawaii or the president."
 
10      SECTION 27.  Section 83-4, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§83-4 Judiciary [and], the Hawaii health systems
 
13 corporation[;], and the University of Hawaii; powers and duties.
 
14 All of the powers and duties assigned in this chapter to the
 
15 governor or the director of human resources development, with
 
16 respect to the judiciary, shall be exercised by the chief justice
 
17 of the supreme court or the administrative director of the
 
18 courts, [and] with respect to the Hawaii health systems
 
19 corporation, shall be assigned to the chief executive officer of
 
20 the Hawaii health systems corporation or designee[.], and with
 
21 respect to the University of Hawaii, shall be assigned to the
 
22 board of regents of the University of Hawaii or the president."
 
23      SECTION 28.  Section 103F-102, Hawaii Revised Statutes, is
 

 
Page 38                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 amended by amending the definition of "agency" to read as
 
 2 follows:
 
 3      ""Agency" means any department, authority, commission,
 
 4 council, board, committee, institution, legislative body, agency,
 
 5 or other establishment or office of the executive, legislative,
 
 6 or judicial branch of the State, and includes the University of
 
 7 Hawaii and the office of Hawaiian affairs."
 
 8      SECTION 29.  Section 304-2, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§304-2 University to be public corporation; general
 
11 powers.  The University of Hawaii is established as the state
 
12 university and constituted a body corporate.  The university,
 
13 under the direction of the board of regents, shall have the
 
14 following general powers:
 
15      (1)  To adopt, amend, and repeal bylaws governing the
 
16           conduct of its business and the performance of the
 
17           powers and duties granted to or imposed upon it by law.
 
18      (2)  To acquire in any lawful manner any property, real,
 
19           personal, or mixed, tangible or intangible, or any
 
20           interest therein; to hold, maintain, use, and operate
 
21           the same; and to sell, lease, or otherwise dispose of
 
22           the same at such time, in such manner, and to the
 
23           extent deemed necessary or appropriate to carry out its
 

 
Page 39                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           purposes.
 
 2      (3)  Notwithstanding and without complying with section
 
 3           103-7 or any other law to the contrary, to acquire,
 
 4           purchase, construct, reconstruct, improve, better, or
 
 5           extend any university project as defined in chapter
 
 6           306.
 
 7      (4)  Notwithstanding and without complying with part III of
 
 8           chapter 39, to issue revenue bonds under chapter 306
 
 9           from time to time in such principal amounts and for any
 
10           university project as defined in chapter 306; which the
 
11           board of regents shall determine.
 
12      (5)  To enter into and perform such contracts, leases,
 
13           cooperative agreements, or other transactions as may be
 
14           necessary in the conduct of its business and on such
 
15           terms as it may deem appropriate, with any agency or
 
16           instrumentality of the United States, or with any
 
17           state, territory, or possession, or with any political
 
18           subdivision thereof, or with any person, firm,
 
19           association, or corporation.
 
20     [(4)] (6)  To determine the character of and the necessity
 
21           for its obligations and expenditures, and the manner in
 
22           which they shall be incurred, allowed, and paid,
 
23           subject to provisions of law specifically applicable to
 

 
Page 40                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           the university.
 
 2     [(5)] (7)  To execute, in accordance with its bylaws, all
 
 3           instruments necessary or appropriate in the exercise of
 
 4           any of its powers.
 
 5     [(6)] (8)  To take such actions as may be necessary or
 
 6           appropriate to carry out the powers conferred upon it
 
 7           by law."
 
 8      SECTION 30.  Section 304-3, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§304-3 Regents; appointment; tenure; qualifications;
 
11 meetings.  The affairs of the university shall be under the
 
12 general management and control of the board of regents consisting
 
13 of twelve members who shall be appointed [and may be removed] by
 
14 the governor.  The term of each member shall be for [four] six
 
15 years; provided that the term of the student member shall be for
 
16 two years.  Members may be reappointed; provided that:
 
17      (1)  No person may serve as a regent for more than twelve
 
18           years during the person's lifetime; and
 
19      (2)  The student member may be reappointed for one
 
20           additional term even though the member may no longer be
 
21           a student at the time of reappointment.
 
22 The superintendent of education shall serve as an ex officio
 
23 voting member.  Except as otherwise provided by statute, state
 

 
Page 41                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 officers shall be eligible to appointment and membership.  Every
 
 2 member may serve beyond the expiration date of the member's term
 
 3 of appointment until the member's successor has been appointed
 
 4 and has qualified.  The board [shall], at its first meeting after
 
 5 June 30, shall elect a chairperson and vice-chairperson, who
 
 6 shall serve until adjournment of its first meeting after June 30
 
 7 of the next year or thereafter until their successors are
 
 8 appointed and have qualified and whose election shall be
 
 9 immediately certified by the board to the chief election officer.
 
10 The board shall appoint a secretary, who shall not be a member of
 
11 the board.  The president of the university shall act as
 
12 executive officer of the board.  The board shall meet not less
 
13 often than ten times annually, and may from time to time meet in
 
14 each of the counties of Hawaii, Maui, and Kauai.
 
15      The members of the board shall serve without pay but shall
 
16 be entitled to their traveling expenses within the State when
 
17 attending meetings of the board or when actually engaged in
 
18 business relating to the work of the board."
 
19      SECTION 31.  Section 304-4, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§304-4 Powers of regents; official name.(a)  The board
 
22 of regents shall have management and control of the general
 
23 affairs, and exclusive jurisdiction over the internal
 

 
Page 42                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 organization and management[,] of the university[.] through its
 
 2 executive officer.
 
 3      (b)  The board of regents shall appoint and may remove an
 
 4 executive officer to be known as the president of the University
 
 5 of Hawaii, and shall set the salary of the president.  It may
 
 6 appoint a treasurer and such other officers as it deems
 
 7 necessary.  It may authorize any officer, elected or appointed by
 
 8 it, to approve and sign on its behalf any voucher or other
 
 9 document which the board may approve and sign.  It may delegate
 
10 to the president or the president's designee the authority to
 
11 render the final decision in contested case proceedings subject
 
12 to chapter 91, as it deems appropriate.  It may purchase or
 
13 otherwise acquire lands, buildings, appliances, and other
 
14 property for the purposes of the university and expend such sums
 
15 of money as may be from time to time placed at the disposal of
 
16 the university from whatever source.  All lands, buildings,
 
17 appliances, and other property so purchased or acquired shall be
 
18 and remain the property of the university to be used in
 
19 perpetuity for the benefit of the university.  The board of
 
20 regents, in accordance with law, shall manage the inventory,
 
21 equipment, surplus property, and expenditures of the university
 
22 and, subject to chapter 91, may adopt rules, further controlling
 
23 and regulating the same.
 

 
Page 43                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1      [(b)] (c)  The board may charge resident and nonresident
 
 2 tuition fees for regular courses of instruction at any University
 
 3 of Hawaii campus, including any community college.
 
 4      The board may also charge other fees for special programs of
 
 5 instruction, including fees for the University Laboratory School,
 
 6 as well as laboratory fees, course fees, fees for student
 
 7 activities, and an information technology user fee.  The board
 
 8 may charge other fees for summer session or evening courses,
 
 9 including differential fees for nonresident students.
 
10      The board may waive entirely or reduce the tuition fee or
 
11 any of the other fees for graduate teaching and research
 
12 assistants.  The board may enter into agreements with government
 
13 and university officials of any other state or foreign country to
 
14 provide for reciprocal waiver of the nonresident tuition and fee
 
15 differential.  The board may waive the nonresident tuition and
 
16 fee differential for selected students from Pacific and Asian
 
17 jurisdictions when their presence would be beneficial to the
 
18 university or the State.  The board may waive entirely or reduce
 
19 the tuition fee or any of the other fees for students, resident
 
20 or nonresident.  The board shall determine the percentage of
 
21 allowable tuition and fee waivers for financial need and other
 
22 university priorities.  These tuition waivers and waivers of the
 
23 nonresident tuition and fee differential shall be awarded in
 

 
Page 44                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 accordance with guidelines established by the board.
 
 2      [(c)] (d)  The board shall adopt the necessary rules
 
 3 defining residence for tuition purposes herein; provided that the
 
 4 basic rule shall be that a student shall qualify for the resident
 
 5 tuition fee only if the following criteria are met:
 
 6      (1)  The adult student, or in the case of a minor student,
 
 7           the student's parents or guardians, has been a bona
 
 8           fide resident of this State for at least twelve
 
 9           consecutive months next preceding the student's first
 
10           day of officially scheduled instruction for any
 
11           semester or term in which the student is enrolling at
 
12           the particular college or campus; and
 
13      (2)  The adult or minor student has not been claimed as a
 
14           dependent for tax purposes for at least twelve months
 
15           next preceding the student's first day of officially
 
16           scheduled instruction for any semester or term in which
 
17           the student is enrolling at the particular college or
 
18           campus by the student's parents or guardians who are
 
19           nonresidents of the State; provided that this provision
 
20           shall not apply in cases where the parent claiming the
 
21           student as a dependent is entitled to do so under a
 
22           child support order or agreement issued or entered into
 
23           in conjunction with a divorce proceeding or legal
 

 
Page 45                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           separation agreement, and the other parent and the
 
 2           student meet the criteria set forth in paragraph (1).
 
 3      [(d)] (e)  The board shall develop internal policies and
 
 4 procedures for the procurement of goods, services, and
 
 5 construction, consistent with the goals of public accountability
 
 6 and public procurement practices, but not subject to chapter
 
 7 103D.  However, where possible, the board is encouraged to use
 
 8 the provisions of chapter 103D; provided that the use of one or
 
 9 more provisions of chapter 103D shall not constitute a waiver of
 
10 the exemption of chapter 103D and shall not subject the board to
 
11 any other provision of chapter 103D.
 
12      [(e)] (f)  The board may enter into concession agreements
 
13 without regard to chapter 102.
 
14      (g)  The board may enter into health and human services
 
15 agreements without regard to chapter 103F.
 
16      (h)  Any law to the contrary notwithstanding, the board may
 
17 impose fees for dishonored checks written or electronic funds
 
18 transfers made for charges administered by the university.  Fees
 
19 may include a late payment penalty, interest, and a service fee.
 
20 The fees collected shall be deposited as a realization of the
 
21 tuition and fees special fund.
 
22      (i)  The board shall develop internal policies and
 
23 procedures for personnel management, consistent with the goals of
 

 
Page 46                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 public accountability and public civil service management, but
 
 2 not subject to chapters 76 and 77, for classified staff currently
 
 3 employed by the university and those employed in the future.
 
 4 However, where possible, the board is encouraged to follow the
 
 5 provisions of chapters 76 and 77; provided that the use of one or
 
 6 more provisions of chapters 76 and 77 shall not constitute a
 
 7 waiver of the exemption of chapters 76 and 77 and shall not
 
 8 subject the board to any other provisions of chapters 76 and 77.
 
 9      [(f)] (j)  The official name of the board shall be Board of
 
10 Regents, University of Hawaii, and the board shall adopt and use
 
11 a common seal by which all official acts shall be authenticated."
 
12      SECTION 32.  Section 304-7, Hawaii Revised Statutes, is
 
13 amended by amending subsection (c) to read as follows:
 
14      "(c)  The board shall cause to be kept suitable books of
 
15 account wherein shall be recorded each gift, the essential facts
 
16 of the management thereof, and the expenditure of the income, and
 
17 a statement of all trust funds shall be included in the annual
 
18 report to [the governor and] the legislature."
 
19      SECTION 33.  Section 304-7.8, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "[[]§304-7.8[]]  Appropriations for special and revolving
 
22 funds of the University of Hawaii.  In any fiscal year if the
 
23 amount of revenues deposited into a special or revolving fund of
 

 
Page 47                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 the university exceeds the amount appropriated from that fund for
 
 2 that year, the president may approve expenditures in excess of
 
 3 the amount appropriated, up to the amount by which revenues for
 
 4 that fund exceed the appropriations from that fund for a fiscal
 
 5 year; provided the university shall submit annually a report to
 
 6 [the governor and] the legislature of all expenditures in excess
 
 7 of each fund's appropriation for each fiscal year."
 
 8      SECTION 34.  Section 304-8, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (a) to read as follows:
 
10      "(a)  Moneys appropriated by the legislature for the
 
11 university shall be payable by the [director of finance,]
 
12 university upon vouchers approved by the board of regents or by
 
13 any officer elected or appointed by the board under section 304-4
 
14 and authorized by the board to approve such vouchers on behalf of
 
15 the board.  All moneys received by or on behalf of the board of
 
16 the university shall be deposited with the director of finance,
 
17 except that any moneys received from the federal government or
 
18 from private contributions shall be deposited and accounted for
 
19 in accordance with conditions established by the agencies or
 
20 persons from whom the moneys are received and except that [with
 
21 the concurrence of the director of finance,] moneys received from
 
22 the federal government for research, training, and other related
 
23 purposes of a transitory nature and moneys in trust, special, or
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 revolving funds administered by the university may be deposited
 
 2 in depositories other than the state treasury[; provided that the
 
 3 university informs the director of finance of the depositories in
 
 4 which moneys from the funds have been deposited, and submits
 
 5 copies of annual statements from each of the depositories in
 
 6 which the moneys from the funds are deposited].  All income from
 
 7 regular credit tuition and tuition related course and fee charges
 
 8 against students shall be deposited to the credit of the
 
 9 University of Hawaii tuition and fees special fund pursuant to
 
10 section 304-16.5.  Income from university projects as defined and
 
11 described in sections 306-1 to 306-12, may be credited to special
 
12 or other funds."
 
13      SECTION 35.  Section 304-8.1, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§304-8.1  Research and training revolving fund.(a)  There
 
16 is established a University of Hawaii research and training
 
17 revolving fund into which shall be deposited one hundred per cent
 
18 of the total amount of indirect overhead revenues generated by
 
19 the university from research and training programs.  The board of
 
20 regents of the University of Hawaii is authorized to expend
 
21 eighty-four per cent of the revenues deposited in the fund for:
 
22      (1)  Research and training purposes which may result in
 
23           additional research and training grants and contracts;
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           and
 
 2      (2)  Facilitating research and training at the university.
 
 3      (b)  The University of Hawaii shall prepare and submit an
 
 4 annual report on the status of the research and training
 
 5 revolving fund to the legislature twenty days before the
 
 6 convening of each regular session.  The annual report shall
 
 7 include but not be limited to a breakdown of travel expenses.
 
 8      (c)  Notwithstanding sections 304-10, 304-8.92, and 304-8.96
 
 9 to the contrary, the board of regents or its designee, may
 
10 establish a separate account within the research and training
 
11 revolving fund for the purpose of providing advance funding to
 
12 meet reimbursable costs incurred in connection with federally
 
13 financed research and training projects.  Any reimbursement
 
14 received as a result of providing advance funding shall be
 
15 deposited into the research and training revolving fund to be
 
16 used for the purpose of meeting reimbursable costs incurred in
 
17 connection with federally financed projects.
 
18      [(d)  Revenues deposited into the fund shall not be used as
 
19 a basis for reducing any current or future budget request or
 
20 allotment to the University of Hawaii unless the university
 
21 requests such a reduction.]"
 
22      SECTION 36.  Section 304-8.4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      "§304-8.4  Vocational and technical training projects
 
 2 revolving fund.  There is established a revolving fund for the
 
 3 vocational and technical training projects of the community
 
 4 colleges and the University of Hawaii at Hilo into which shall be
 
 5 deposited the receipts from fees for services, supplies, and use
 
 6 of equipment provided by or in connection with these projects.
 
 7 Funds deposited in this account shall be expended for vocational
 
 8 and technical training projects, and supplies, equipment, and
 
 9 services related thereto.
 
10      The University of Hawaii at Hilo shall report as of the
 
11 close of each fiscal year to [the governor and] the legislature
 
12 on the revolving fund's revenues and expenditures for the
 
13 reported year.  These reports shall be submitted not later than
 
14 twenty days prior to the convening of each regular session."
 
15      SECTION 37.  Section 304-8.92, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§304-8.92  Discoveries and inventions revolving fund.(a)
 
18 There is established a discoveries and inventions revolving fund
 
19 into which shall be deposited four per cent of the total indirect
 
20 overhead funds generated by the university for research and
 
21 training purposes in the prior fiscal year.  Appropriations by
 
22 the state legislature [subject to the approval of the governor],
 
23 proceeds from the commercial exploitation of inventions and
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 intellectual property developed at the university, gifts,
 
 2 donations, fees collected, and grants from public agencies and
 
 3 private persons may also be deposited into the fund for the
 
 4 purposes of supporting innovation and research commercialization
 
 5 and the patenting, copyrighting, licensing, and marketing of
 
 6 discoveries, inventions, and technologies developed at the
 
 7 university.  The fund shall be used to develop technologies which
 
 8 have potential commercial value, support the administration of
 
 9 technology transfer activities, and facilitate economic
 
10 development through education and research undertaken at the
 
11 university.
 
12      (b)  The University of Hawaii shall provide an annual report
 
13 to [the governor and] the legislature describing all transactions
 
14 and activities involved in the administration of the discoveries
 
15 and inventions revolving fund."
 
16      SECTION 38.  Section 304-10, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§304-10  Loans; advances.  The university may borrow from
 
19 time to time, sums [which in the aggregate shall not exceed
 
20 $100,000,] from the state treasury; and the director of finance
 
21 may make such loans to the university, without interest, provided
 
22 that the loans shall be repaid within the same fiscal year unless
 
23 extended by the director.  In addition to the foregoing, the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 director may advance funds to the university when required to
 
 2 meet reimbursable costs incurred in connection with federally
 
 3 financed research and training projects[, and provided that such
 
 4 advances shall not amount in the aggregate to more than $100,000
 
 5 at any time]."
 
 6      SECTION 39.  Section 304-16.5, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "(a)  There is established the University of Hawaii tuition
 
 9 and fees special fund into which shall be deposited all revenue
 
10 collected by the university for regular, summer, and continuing
 
11 education credit tuition, tuition related course and fee charges,
 
12 University Laboratory school fees, and any other charges to
 
13 students, except as provided by law.  Moneys deposited into the
 
14 fund shall be expended to maintain or improve the university's
 
15 programs and operations and shall not be[:
 
16      (1)  Used as a justification for reducing any budget request
 
17           or allotment to the University of Hawaii unless the
 
18           university requests such a reduction;
 
19      (2)  Transferred] transferred unless otherwise authorized by
 
20           the legislature[; and
 
21      (3)  Restricted by the governor or the director of finance
 
22           without the prior approval of the legislature].
 
23      Any rule, policy, or action of any agency or individual in
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 contravention of this subsection shall be void as against public
 
 2 policy."
 
 3      SECTION 40.  Section 304-93, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (b) to read as follows:
 
 5      "(b)  The university may spend out of the state higher
 
 6 education loan fund up to two per cent of the total amount of
 
 7 loans outstanding for collection and administrative expenses.
 
 8 [In accordance with chapter 103D, the] The university may enter
 
 9 into written contracts with collection agencies for the purpose
 
10 of collecting delinquent student loans.  All payments collected,
 
11 exclusive of a collection agency's commissions, shall revert, and
 
12 be credited, to the loan fund."
 
13      SECTION 41.  Section 306-2, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§306-2 Powers of the board.  In addition to the powers
 
16 which it now possesses, the board of regents shall have power to:
 
17      (1)  Construct and maintain university projects, including a
 
18           university project included or to be in a university
 
19           system;
 
20      (2)  Combine two or more university projects, now or
 
21           hereafter existing on any one or more of the areas of
 
22           any one or more of the educational institutions under
 
23           the control of or governed by the board, into a
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           university system or systems, and to maintain such
 
 2           system or systems;
 
 3      (3)  Prescribe and collect rents, fees and charges for the
 
 4           use of or services furnished by any university project
 
 5           or the facilities thereof;
 
 6      (4)  [With the approval of the governor, issue] Issue
 
 7           revenue bonds, to finance in whole or in part the cost
 
 8           of construction, or maintenance, or both, of any
 
 9           university project, including a university project
 
10           included or to be included in a university system;
 
11      (5)  Pledge to the punctual payment of such revenue bonds
 
12           and interest thereon, the revenue of the university
 
13           project or projects for the construction or maintenance
 
14           of which the bonds have been issued, or the revenue of
 
15           the university system in which such university project
 
16           is to be included, and the revenue of other or all
 
17           university projects or university systems, in an amount
 
18           sufficient to pay such bonds and interest as the same
 
19           become due and to create and maintain reasonable
 
20           reserves therefor;
 
21      (6)  Advance such moneys of the university, not otherwise
 
22           required, as are necessary to pay the expenses incurred
 
23           in making the preparations for the initial issuance of
 

 
Page 55                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           revenue bonds under this chapter, and to take any other
 
 2           action necessary or proper for carrying into execution
 
 3           and administering this chapter, including providing for
 
 4           the full utilization of university projects and
 
 5           university systems in every way conducive to the
 
 6           furtherance of any or all of the purposes of the
 
 7           university."
 
 8      SECTION 42.  Section 306-5, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§306-5 Covenants in resolution authorizing revenue bonds.
 
11 Any resolution or resolutions authorizing the issuance of revenue
 
12 bonds under this chapter may contain covenants as to:
 
13      (1)  The purpose or purposes to which the proceeds of the
 
14           sale of the revenue bonds may be applied; the use and
 
15           disposition of such proceeds; the investment thereof
 
16           pending such use and disposition; and the use and
 
17           disposition of the income from such investment;
 
18      (2)  The use and disposition of the revenue of the
 
19           university project or projects for the construction or
 
20           maintenance of which the revenue bonds are issued or of
 
21           the university system or systems in which such project
 
22           or projects are to be included; the use and disposition
 
23           of the revenue of all university projects and
 

 
Page 56                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           university systems, and of the revenues of the
 
 2           university, including the creation and maintenance of
 
 3           reserves; the investment of such revenues and of the
 
 4           moneys in such reserves; and the use and disposition of
 
 5           the income from such investments;
 
 6      (3)  The minimum amount of revenues to be produced by the
 
 7           university projects or university systems, over and
 
 8           above the amount required to be produced by the first
 
 9           sentence and clauses (1) through (3) of the second
 
10           sentence of section 306-9;
 
11      (4)  The use and disposition of the proceeds of the sale of
 
12           any university project or university system, or part of
 
13           either thereof;
 
14      (5)  The construction and maintenance of any university
 
15           project or university system other than the university
 
16           project or projects for the construction or maintenance
 
17           of which revenue bonds are issued or the university
 
18           system or systems in which such latter project or
 
19           projects are to be included;
 
20      (6)  The issuance of other or additional revenue bonds
 
21           payable either from the revenue of the university
 
22           project or projects for the construction or maintenance
 
23           of which the revenue bonds are issued or the revenue of
 

 
Page 57                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           the university system or systems in which such project
 
 2           or projects are to be included, or payable from the
 
 3           revenue of other university projects or university
 
 4           systems;
 
 5      (7)  The maintenance of the university project or university
 
 6           system, including the creation by the board of regents
 
 7           of such supervisory positions, which shall not be
 
 8           subject to chapters 76 and 77, as are necessary to
 
 9           facilitate the issuance of revenue bonds by ensuring
 
10           the adequacy of revenues;
 
11      (8)  The insurance to be carried on university projects and
 
12           university systems and the use and disposition of
 
13           insurance moneys;
 
14      (9)  Books of account and inspection and audit thereof;
 
15     (10)  A procedure by which the terms and conditions of the
 
16           bond resolution or indenture may be subsequently
 
17           amended or modified with the consent of the board, the
 
18           vote or written assent of the holders of bonds or any
 
19           proportion of the holder, or any trustee thereof; and
 
20     (11)  The terms and conditions upon which the holders of
 
21           bonds evidencing the obligation to repay loans, or any
 
22           proportion of the holders, or any trustee thereof,
 
23           shall be entitled to the appointment of a receiver by
 

 
Page 58                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           any court of competent jurisdiction, which court shall
 
 2           have jurisdiction in such proceedings, and which
 
 3           receiver may enter and take possession of the
 
 4           university project or projects, or university system or
 
 5           systems, maintain them, prescribe rents, fees, and
 
 6           charges, and collect, receive, and apply all revenue
 
 7           thereafter arising therefrom in the same manner as the
 
 8           board itself might do, but the receiver shall have no
 
 9           power, nor be granted any power, to utilize, or permit
 
10           the utilization of, any university project or
 
11           university system other than in a manner consistent
 
12           with and in furtherance of the purposes of the
 
13           university[; provided that all such covenants shall be
 
14           subject to review by the governor].
 
15      This chapter and any such resolution or resolutions shall be
 
16 a contract with the holders of bonds issued under this chapter,
 
17 and the duties of the board and any such resolution or
 
18 resolutions shall be enforceable by any bondholder by mandamus or
 
19 other appropriate suit, action, or proceeding in any court of
 
20 competent jurisdiction."
 
21      SECTION 43.  Section 306-13, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§306-13  Funding and refunding bonds; authorization and
 

 


 

Page 59                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 purpose.  The board of regents may[, with the approval of the
 
 2 governor,] provide for the issuance of revenue bonds (herein
 
 3 referred to as refunding bonds) for the purpose of refunding,
 
 4 redeeming, or retiring at or at any time before maturity or at
 
 5 any time before the first date upon which the outstanding bonds
 
 6 to be refunded may be called for redemption, any bonds issued
 
 7 under this chapter, including any bonds which the holders may
 
 8 consent to be paid or refunded even though the bonds are not
 
 9 matured or are not callable or redeemable, and for the purpose of
 
10 funding indebtedness not evidenced by revenue bonds but which was
 
11 incurred for purposes for which revenue bonds may be issued
 
12 pursuant to this chapter.  The rate or rates of interest borne by
 
13 the refunding bonds shall not be affected or limited by the rate
 
14 or rates of interest borne by the bonds to be refunded or the
 
15 indebtedness to be funded.  All provisions of this chapter
 
16 applicable to the issuance of revenue bonds shall be complied
 
17 with in the issuance of refunding bonds.  Refunding bonds shall
 
18 be sold as provided in section 306-4, or the board may, in its
 
19 discretion, provide for the exchange of refunding bonds for a
 
20 like principal amount of outstanding bonds for the refunding of
 
21 which the issuance of such refunding bonds has been authorized,
 
22 whether or not the interest rate on the refunding bonds is higher
 
23 than the interest rate on the bonds refunded thereby."
 

 
Page 60                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 44.  Section 661-12, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (f) to read as follows:
 
 3      "(f)  As used in this section:
 
 4      "Agency" means any state or county board, commission,
 
 5 department, or officer authorized by law to make rules or to
 
 6 adjudicate contested cases except those in the legislative or
 
 7 judicial branches[.] or the University of Hawaii.
 
 8      "Civil proceeding" means any proceeding other than a
 
 9 criminal proceeding or a proceeding before a family court.
 
10      "Small business" means an independently owned business with
 
11 less than fifty employees."
 
12      SECTION 45.  Section 12 of Act 321, Session Laws of Hawaii
 
13 1986, as amended by section 69 of Act 283, Session Laws of Hawaii
 
14 1987, by section 7 of Act 371, Session Laws of Hawaii 1989, by
 
15 section 3 of Act 163, Session Laws of Hawaii 1991, by section 2
 
16 of Act 314, Session Laws of Hawaii 1993, by section 22 of Act 8,
 
17 Special Session Laws of Hawaii 1993, by section 1 of Act 180,
 
18 Session Laws of Hawaii 1997, and by section 24, Act 115, Session
 
19 Laws of Hawaii 1998, is amended to read as follows:
 
20      "SECTION 24.  Section 12 of Act 321, Session Laws of Hawaii
 
21 1986, as amended by section 69 of Act 283, Session Laws of Hawaii
 
22 1987, as amended by section 7 of Act 371, Session Laws of Hawaii
 
23 1989, as amended by section 3 of Act 163, Session Laws of Hawaii
 

 
Page 61                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 1991, as amended by section 2 of Act 314, Session Laws of Hawaii
 
 2 1993, as amended by section 22 of Act 8, Special Session Laws of
 
 3 Hawaii 1993, and as amended by section 1 of Act 180, Session Laws
 
 4 of Hawaii 1997, is amended to read as follows:
 
 5      SECTION 46.  This Act shall take effect on July 1, 1986, and
 
 6 be repealed as of June 30, 2005; [provided that on repeal
 
 7 sections 40-1, 40-2, 40-4, 40-6, and 40-81, Hawaii Revised
 
 8 Statutes, are reenacted in the form in which they read on
 
 9 June 30, 1986, and section 40-58, Hawaii Revised Statutes, is
 
10 reenacted in the form in which it read on June 30, 1991.]
 
11 provided that:
 
12      (1)  Section 3 of this Act is repealed on June 30, 2005;
 
13      (2)  Section 40-1(b), Hawaii Revised Statutes, is reenacted
 
14           in the form in which it read on June 30, 1986;
 
15      (3)  Sections 40-2, 40-6, and 40-81, Hawaii Revised
 
16           Statutes, are reenacted in the form in which they read
 
17           on June 30, 1986; and provided further that amendments
 
18           made by Act     , Session Laws of Hawaii 2000, shall
 
19           not be repealed;
 
20      (4)  Section 40-4, Hawaii Revised Statutes, is reenacted in
 
21           the form in which it read on June 30, 1986; and
 
22           provided further that the amendment made to that
 
23           section adding the University of Hawaii shall not be
 

 
Page 62                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1           repealed; and
 
 2      (5)  Section 40-58, Hawaii Revised Statutes, is reenacted in
 
 3           the form in which it read on June 30, 1991; and
 
 4           provided further that amendments made by Act     ,
 
 5           Session Laws of Hawaii 2000, shall not be repealed."
 
 6      SECTION 47.  Section 26-11, Hawaii Revised Statutes, is
 
 7 repealed.
 
 8      ["§26-11  University of Hawaii.(a)  The University of
 
 9 Hawaii shall be headed by an executive board to be known as the
 
10 board of regents.
 
11      The board shall consist of twelve members.  No more than six
 
12 of the members shall be members of the same political party and
 
13 at least part of the membership of the board shall represent
 
14 geographic subdivisions of the State.  At least one member shall
 
15 be a University of Hawaii student at the time of the initial
 
16 appointment.  This member may be reappointed for one additional
 
17 term even though the member may no longer be a student at the
 
18 time of reappointment.
 
19      The board shall have power, in accordance with the
 
20 Constitution of the State and with law, to formulate policy, and
 
21 to exercise control over the university through its executive
 
22 officer, the president of the university.  The board shall have
 
23 exclusive jurisdiction over the internal organization and
 

 
Page 63                                                    
                                     H.B. NO.           
                                                        
                                                        

 
 1 management of the university.
 
 2      (b)  The board of regents shall appoint and may remove an
 
 3 executive officer to be known as the president of the University
 
 4 of Hawaii.
 
 5      The University of Hawaii as heretofore constituted as a body
 
 6 corporate is continued as the University of Hawaii established by
 
 7 this chapter."]
 
 8      SECTION 48.  Except as modified in sections 15, 16, 17, 18,
 
 9 19, and 20 of this Act, no part of this Act shall contravene any
 
10 part of chapters 76, 77, 89, Hawaii Revised Statutes, or any
 
11 collective bargaining agreement that may have been or may be
 
12 negotiated under chapter 89, Hawaii Revised Statutes.
 
13      SECTION 49.  This Act applies to any person who has served
 
14 as a member of the board of regents whether before or after the
 
15 effective date of this Act.
 
16      SECTION 50.  Following approval of this Act, the revisor of
 
17 statutes shall insert the number of this Act in the blank spaces
 
18 in paragraphs (3) and (5) of section 46.
 
19      SECTION 51.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 52.  This Act shall take effect on July 1, 2000.
 
22 
 
23                           INTRODUCED BY:  _______________________