Creates a State Eminent Scholars Special Fund to match private gifts to the University of Hawaii (UH) to establish endowed faculty positions.

A BILL FOR AN ACT

SECTION 1. The purpose of this Act is to create a state eminent scholars special fund to enable the university of Hawaii System to provide donors with an incentive in the form of matching grants for donations to establish permanent endowed faculty positions at any university of Hawaii campus. All funds appropriated for challenge grants, new donors, major gifts, or eminent scholars program must be deposited into the special fund and invested until the president of the university of Hawaii allocates the funds to the university to match private donations. Any undisbursed balance remaining in the special fund and interest income accruing to the portion of the special fund that is not matched and distributed to the university must remain in the special fund and be used to increase the total funds available for challenge grants. The president of the university of Hawaii may authorize any campus to encumber the state matching portion of a challenge grant from funds available.

SECTION 2. Chapter 304, Hawaii Revised Statutes, is

amended by adding a new section to be appropriately designated and to read as follows:

"§304-   State eminent scholars special fund. There is established a state eminent scholars special fund into which shall be deposited appropriations made by the state legislature. The fund shall be used as a funding mechanism to create new endowed faculty positions funded by a combination of state and private funds. The board of regents shall adopt rules as necessary to establish this program. No state appropriations deposited into the fund shall be expended unless matched by private donations to the university of Hawaii on a dollar-for-dollar basis.

In order to be eligible for state matching funds, a university of Hawaii campus chancellor would need to submit a proposal for each proposed endowed chair to the president of the university of Hawaii for review and consideration. The president of the university of Hawaii shall take into account the following criteria before approving state matching funds to establish a position and recruit candidates:

The review process would consider the field and its potential funding sources, relationship to existing research at the university of Hawaii and in the state of Hawaii, size and scope of related industries, and other relevant factors.

The university of Hawaii shall prepare and submit an annual report on the status of the eminent scholars special fund to the legislature twenty days before the convening of each regular session."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000, or so much thereof as may be necessary, for fiscal year 2006-2007 to be deposited into the state eminent scholars special fund. The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

SECTION 3. There is appropriated out of the state eminent scholars special fund the sum of $5,000,000, or so much thereof as may be necessary, for fiscal year 2006-2007, for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect July 1, 2006.