THE SENATE	S.B. NO.	814
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO CERTAIN FUNDS OF THE UNIVERSITY OF HAWAII.

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

     SECTION 1.  Chapter 304A, Hawaii Revised Statutes, is amended by adding six new sections to subpart C of part V to be appropriately designated and to read as follows:

     "§304A-A Child care programs special fund. There is established a child care programs special fund for the operation of child care programs established under section 304A‑116 and the construction and renovation of child care centers established by the University of Hawaii.  Fees charged for child care at child care programs, proceeds from donations to the university for child care programs, and proceeds from loans or other instruments of indebtedness for the construction or renovation of child care centers shall be deposited into the special fund.  Expenditures from the special fund shall be made for the operation of child care programs and payment of principal and interest on obligations incurred for the construction or renovation of child care centers.

§304A-B Discoveries and inventions special fund. There is established a discoveries and inventions special 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 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 special 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 special fund shall be used to develop technologies that have potential commercial value, support the administration of technology transfer activities, and facilitate economic development through education and research undertaken at the university.

§304A-C University of Hawaii alumni special fund. There is established the University of Hawaii alumni special fund into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni. Funds deposited into this special fund may be expended by the university for all costs associated with conducting alumni affairs, activities, and programs for the university system, including expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audiovisual, musical, and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements.

§304A-D University of Hawaii at Manoa intercollegiate athletics special fund and University of Hawaii at Hilo intercollegiate athletics special fund. Notwithstanding any other law to the contrary, there are established the University of Hawaii at Manoa intercollegiate athletics special fund and the University of Hawaii at Hilo intercollegiate athletics special fund for the intercollegiate athletic programs of the University of Hawaii at Manoa and the University of Hawaii at Hilo, which shall be used to receive, deposit, disburse, and account for funds from the activities of the intercollegiate athletic programs.  The university may establish appropriate charges for activities related to its athletic programs and the use of its athletic facilities, the proceeds from which shall be deposited into these special funds.

The university shall maintain the financial integrity and viability of these special funds, including the maintenance of an adequate reserve to cope with the various factors that impact the revenue structure of an intercollegiate athletic program.

§304A-E Animal research farm, Waialee, Oahu special fund. There is established the animal research farm, Waialee, Oahu special fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources of the University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies.  Funds deposited into this special fund shall be expended for animal research, and services and supplies related thereto.

§304A-F University of Hawaii-Hilo theatre special fund. There is established the University of Hawaii-Hilo theatre special fund, which shall consist of admissions, advertising sales, corporate sponsorships, marketing, merchandising, donations, fund-raising, fees, charges, and other moneys collected in conjunction with the University of Hawaii-Hilo theatre program.  The special fund shall be administered by the office of administrative affairs of the University of Hawaii at Hilo.  Funds may be expended for all costs associated with the theatre program, including artists' fees, production costs, personnel costs, honoraria, per diem, hotel and room rentals, food and refreshments, printing and mailing, advertising, airfare, lei, rental or purchase of equipment, and theater supplies and materials."

     SECTION 2.  Section 304A-116, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The provision of child care services may be supported with proceeds from the child care programs [revolving] special fund established under section [[304A-2252],] 304A-A, public funds, and private grants and gifts to pay for the expenses of operation, including payment of principal and interest on any obligations incurred."

     SECTION 3.  Section 304A-2253, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  There is established a University of Hawaii research and training revolving 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 is authorized to expend one hundred per cent of the revenues deposited in the fund for:

     (1)  Research and training purposes that 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] special fund."

     2.  By amending subsection (c) to read:

     "(c)  Notwithstanding sections 304A-107[,] and [[]304A‑2254[], and [304A-2258]] to the contrary, the board of regents or its designee, may establish a separate account within the research and training revolving 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 fund to be used for the purpose of meeting reimbursable costs incurred in connection with federally financed projects."

     SECTION 4.  Section 304A-2158, Hawaii Revised Statutes, is repealed.

     ["[§304A-2158]  Western Governors University special fund.  There is established a Western Governors University special fund into which shall be deposited all revenues derived from the State's participation in the Western Governors University, except University of Hawaii income from tuition and fees charged for regular courses of instruction and tuition-related course and fee charges to students.  The fund shall be administered by the board of regents of the University of Hawaii and shall be used for the State's membership and participation in the Western Governors University."]

     SECTION 5.  Section 304A-2252, Hawaii Revised Statutes, is repealed.

     ["[§304A-2252]  Child care programs revolving fund.  There is established a child care programs revolving fund for the operation of child care programs established under section 304A‑116 and the construction and renovation of child care centers established by the University of Hawaii.  Fees charged for child care at child care programs, proceeds from donations to the university for child care programs, and proceeds from loans or other instruments of indebtedness for the construction or renovation of child care centers shall be deposited into the revolving fund.  Expenditures from the revolving fund shall be made for the operation of child care programs and payment of principal and interest on obligations incurred for the construction or renovation of child care centers."]

     SECTION 6.  Section 304A-2254, Hawaii Revised Statutes, is repealed.

     ["[§304A-2254]  Discoveries and inventions revolving fund.  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 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 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 7.  Section 304A-2258, Hawaii Revised Statutes, is repealed.

     ["[§304A-2258]  University of Hawaii housing assistance revolving fund.  There is established the University of Hawaii 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 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 8.  Section 304A-2259, Hawaii Revised Statutes, is repealed.

     ["[§304A-2259]  University of Hawaii alumni revolving fund.  There is established the University of Hawaii alumni revolving fund into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni.  Funds deposited into this revolving fund may be expended by the university for all costs associated with conducting alumni affairs, activities, and programs for the university system, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audiovisual, musical, and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements."]

     SECTION 9.  Section 304A-2261, Hawaii Revised Statutes, is repealed.

     ["[§304A-2261]  University of Hawaii at Manoa intercollegiate athletics revolving fund and University of Hawaii at Hilo intercollegiate athletics revolving fund.  Notwithstanding any other law to the contrary, there are established the University of Hawaii at Manoa intercollegiate athletics revolving fund and the University of Hawaii at Hilo intercollegiate athletics revolving fund for the intercollegiate athletic programs of the University of Hawaii at Manoa and the University of Hawaii at Hilo, which shall be used to receive, deposit, disburse, and account for funds from the activities of the intercollegiate athletic programs.  The university may establish appropriate charges for activities related to its athletic programs and the use of its athletic facilities, the proceeds from which shall be deposited into these revolving funds.

The university shall maintain the financial integrity and viability of these revolving funds, including the maintenance of an adequate reserve to cope with the various factors that impact the revenue structure of an intercollegiate athletic program."]

     SECTION 10.  Section 304A-2262, Hawaii Revised Statutes, is repealed.

     ["[§304A-2262]  Animal research farm, Waialee, Oahu revolving fund.  There is established the animal research farm, Waialee, Oahu revolving fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources of the University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies.  Funds deposited into this revolving fund shall be expended for animal research, and services and supplies related thereto."]

     SECTION 11.  Section 304A-2264, Hawaii Revised Statutes, is repealed.

     ["[§304A-2264]  Conference center revolving fund; University of Hawaii at Manoa.  There is established the conference center revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii at Manoa.  All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund.  The dean of the college of continuing education and community service is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audiovisual equipment, and conference supplies and materials."]

     SECTION 12.  Section 304A-2265, Hawaii Revised Statutes, is repealed.

     ["[§304A-2265]  International exchange healthcare tourism revolving fund.  (a)  There is established the international exchange healthcare tourism revolving fund for the international exchange of healthcare tourism program into which shall be deposited all donations, gifts, contributions, legislative appropriations, and moneys generated by the program through education, training, and research contracts and grants.  Moneys deposited into this fund for the school of medicine and the school of nursing and dental hygiene shall be divided into separate accounts for each school, provided that moneys not designated for use by a particular school shall be divided equally.  Moneys shall be expended from each account by the school of medicine and the school of nursing and dental hygiene, for student aid, training projects, teaching, supplies, services, and activities related to the development and promotion of the health-related tourism education program.

(b)  All unexpended and unencumbered moneys appropriated by the legislature remaining in the fund at the close of each fiscal year that are deemed, by the director of finance, to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year shall lapse to the credit of the state general fund."]

     SECTION 13.  Section 304A-2269, Hawaii Revised Statutes, is repealed.

     ["[§304A-2269]  Community college and University of Hawaii at Hilo bookstore revolving fund.  There is established the community college and University of Hawaii at Hilo bookstore revolving fund for the community college and University of Hawaii at Hilo bookstores, from which shall be paid the cost of goods or services rendered or furnished to the bookstores and which shall be replenished through charges made for goods and services or through transfers from other accounts or funds."]

     SECTION 14.  Section 304A-2271, Hawaii Revised Statutes, is repealed.

     ["[§304A-2271]  University of Hawaii-Hilo theatre revolving fund.  There is established the University of Hawaii-Hilo theatre revolving fund, which shall consist of admissions, advertising sales, corporate sponsorships, marketing, merchandising, donations, fund-raising, fees, charges, and other moneys collected in conjunction with the University of Hawaii-Hilo theatre program.  The revolving fund shall be administered by the office of administrative affairs of the University of Hawaii at Hilo.  Funds may be expended for all costs associated with the theatre program, including artists' fees, production costs, personnel costs, honoraria, per diem, hotel and room rentals, food and refreshments, printing and mailing, advertising, airfare, leis, rental or purchase of equipment, and theater supplies and materials."]

     SECTION 15.  Section 304A-2353, Hawaii Revised Statutes, is repealed.

     ["[§304A-2353]  The Senator Hiram L. Fong scholarship program; endowment trust.  (a)  There is established the Senator Hiram L. Fong scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

(b)  Awards shall be granted annually to one female student and one male student who:

(1) Are graduates of a public high school in the State;

(2) Are upperclassmen at the university;

(3) Submit winning essays to the board of regents on the senator's contributions to Hawaii;

(4) Have a demonstrated commitment to local community issues, as shown by volunteer work and participation in community organizations; and

(5) Have a demonstrated interest and knowledge of the history of immigration to Hawaii.

(c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

(1) Pay for the costs of tuition and fees for a single academic year;

(2) Pay for the costs of textbooks and other instructional materials for a single academic year;

(3) Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

(4) Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

(d)  The board of regents shall adopt rules to implement the Senator Hiram L. Fong scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

(e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Hiram L. Fong scholarship program."]

     SECTION 16.  Section 304A-2354, Hawaii Revised Statutes, is repealed.

     ["[§304A-2354]  The Senator Oren E. Long scholarship program; endowment trust.  (a)  There is established the Senator Oren E. Long scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

(b)  Awards shall be granted annually to one female student and one male student who:

(1) Are graduates of a public high school in the State;

(2) Are upperclassmen at the university; and

(3) Submit winning essays to the board of regents on the senator's contributions to Hawaii.

(c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

(1) Pay for the costs of tuition and fees for a single academic year;

(2) Pay for the costs of textbooks and other instructional materials for a single academic year;

(3) Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

(4) Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

(d)  The board of regents shall adopt rules to implement the Senator Oren E. Long scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

(e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Oren E. Long scholarship program."]       SECTION 17.  All fund balances remaining unencumbered and unexpended as of June 30, 2011, in the University of Hawaii housing assistance revolving fund shall be transferred to the credit of the Manoa faculty housing program under the University of Hawaii auxiliary enterprises special fund established under section 304A-2157, Hawaii Revised Statutes.

     All fund balances remaining unencumbered and unexpended as of June 30, 2011, in the conference center revolving fund shall be transferred to the credit of the University of Hawaii commercial enterprises revolving fund established under section 304A-2251, Hawaii Revised Statutes.

     All fund balances remaining unencumbered and unexpended as of June 30, 2011, in any other fund repealed by this Act shall lapse to the credit of the general fund of the State.

     SECTION 18.  The conversion of revolving funds to special funds by repealing language in sections 5, 6, 8, 9, 10, and 14 of this Act and inserting new language in section 1 of this Act shall in no way be construed as an authorization to remove, alter, or amend any moneys from any revolving fund other than for the purposes of this Act and for the allowable uses under relevant law.

     SECTION 19.  In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 20.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 21.  This Act shall take effect on July 1, 2030.

Report Title:

University of Hawaii; Special Funds

Description:

Converts certain revolving funds of the University of Hawaii into special funds; repeals or amends certain funds of the University of Hawaii and transfers the remaining balances of other specified funds.  Effective July 1, 2030.  (SB814 HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.