Proposes an amendment to the Hawaii Constitution to allow the board of regents to issue general obligation bonds.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the University of Hawaii as been granted autonomy throughout the years. Consequently, the university has grown and proven itself to be able to manage its administration and finances effectively and more efficiently.

The purpose of this Act is to propose an amendment to article X, section 6, of the Constitution of the State of Hawaii to authorize the board of regents to issue general obligation bonds.

SECTION 2. Article X, section 6, of the Constitution of the State of Hawaii is amended to read as follows:

"BOARD OF REGENTS; POWERS

Section 6. There shall be a board of regents of the University of Hawaii, the members of which shall be nominated and, by and with the advice and consent of the senate, appointed by the governor. At least part of the membership of the board shall represent geographic subdivisions of the State. The board shall have the power to formulate policy, and to exercise control over the university through its executive officer, the president of the university, who shall be appointed by the board. The board shall also have exclusive jurisdiction over the internal structure, management, and operation of the university. This section shall not limit the power of the legislature to enact laws of statewide concern. The legislature shall have the exclusive jurisdiction to identify laws of statewide concern.

The board may issue general obligation bonds for the payment of the principal and interest of which the full faith and credit of the political subdivision is pledged and, unless otherwise indicated, includes reimbursable general obligation bonds. All bonds and other instruments of indebtedness issued by the board shall be subject to article VII, sections 12 and 13. For the purposes of determining the university's debt ceiling, the board shall follow the provisions of article VII, section 13. Fees, payments, and income, excluding federal funds, shall be considered general fund revenues of the university. The board shall be responsible for the payment of all principal and interest on general obligation bonds issued by the State and outstanding for the direct benefit of the University of Hawaii on the effective date of this section."

SECTION 3. The question to be printed on the ballot shall be as follows:

SECTION 4. New constitutional material is underscored.

SECTION 5. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.