Report Title:
UH; Special Fund
Description:
Authorizes the research and training special fund to be used for the repair and replacement of research related equipment and facilities. Discontinues fund transfers into the discoveries and inventions revolving fund and the housing assistance revolving fund. (SD2)
THE SENATE |
S.B. NO. |
3118 |
TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE UNIVERSITY OF HAWAII.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the research and training revolving fund was established in 1974 to pay for research and training activities at the University of Hawaii. The state auditor, in a 2004 report (04-13), found that the research and training revolving fund "does not meet all criteria for a revolving fund." The legislature found that the University of Hawaii's corrective action to the state auditor's finding was to reclassify the research and training revolving fund as a special fund.
In addition, a November 9, 2001 report of the president's special task force on research infrastructure at the University of Hawaii proposed remedies to what the University of Hawaii association of research investigators described as impediments to the conduct of research at the University of Hawaii. The task force recommended that "overhead recovery by UH must be reinvested in the research infrastructure, to permit investments in equipment, technical support and faculty salary to remain competitive." The report expressed concern that a:
substantial fraction of the total UH indirect costs that are recovered have been allocated to activities that do not directly support research and do not qualify as recoverable costs. During the past 8 years, 12% of the UH ICR has been allocated to the Housing Assistance Revolving Fund (HARF) by legislative mandate without any consideration of the amount ($2.47m in FY01), its intended uses or any demonstrated need. An additional 4% ($824K in FY01) has been redirected to the Discovery and Inventions Revolving Fund (DIRF), an internal entity that has not been adequately coordinated with the rest of the research enterprise.
The legislature believes that the current unfunded deferred maintenance backlog of $175,000,000, as well as other equipment repair and replacement needs that are related to research activities, will benefit by retaining the moneys received from all indirect cost recovery efforts in the University of Hawaii research and training revolving fund. The legislature also believes that the University of Hawaii research and training revolving fund should be reclassified as a special fund and that all of its funds should be reinvested in the research infrastructure.
SECTION 2. Section 304-8.1, Hawaii Revised Statutes, is amended by amending its title and subsections (a), (b), and (c) to read as follows:
"§304-8.1 Research and training [revolving] special fund. (a) There is established a University of Hawaii research and training [revolving] special fund into which shall be deposited one hundred per cent of the total amount of indirect overhead revenues generated by the university from research and training programs. The board of regents of the University of Hawaii is authorized to expend one hundred per cent of the revenues deposited in the fund for:
(1) Research and training purposes which may result in additional research and training grants and contracts;
(2) Facilitating research and training at the university; and
(3) [Further deposit into the discoveries and inventions revolving fund and the University of Hawaii housing assistance revolving fund.] Repair and replacement of research related equipment and facilities.
(b) The University of Hawaii shall prepare and submit an annual report on the status of the research and training [revolving] special fund to the legislature twenty days before the convening of each regular session. The annual report shall include but not be limited to a breakdown of travel expenses.
(c) Notwithstanding sections 304-10, 304-8.92, and 304-8.96 to the contrary, the board of regents or its designee, may establish a separate account within the research and training [revolving] special fund for the purpose of providing advance funding to meet reimbursable costs incurred in connection with federally financed research and training projects. Any reimbursement received as a result of providing advance funding shall be deposited into the research and training [revolving] special fund to be used for the purpose of meeting reimbursable costs incurred in connection with federally financed projects."
SECTION 3. Section 304-8.92, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established a discoveries and inventions revolving fund [into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year as determined by the board of regents]. Appropriations by the state legislature subject to the approval of the governor, proceeds from the commercial exploitation of inventions and intellectual property developed at the university, gifts, donations, fees collected, and grants from public agencies and private persons may [also] be deposited into the fund for the purposes of supporting innovation and research commercialization and the patenting, copyrighting, licensing, and marketing of discoveries, inventions, and technologies developed at the university. The fund shall be used to develop technologies [which] that have potential commercial value, support the administration of technology transfer activities, and facilitate economic development through education and research undertaken at the university."
SECTION 4. Section 304-8.96, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established a housing assistance revolving fund [into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year as determined by the board of regents]. The fund shall be used to:
(1) Implement the University of Hawaii housing assistance master plan, in accordance with policies adopted by the board of regents; and
(2) Account for all transactions of the university housing assistance program, including but not limited to revenues, expenditures, loans, and transfers."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2060.