SB239 HD1.DOC

SECTION 1. The legislature finds that the John A. Burns school of medicine is authorized under existing statutes to use a portion of Hawaii tobacco settlement special fund moneys for annual operating expenses to support the school's operations and train and graduate new physicians. The legislature further finds that if no action is taken, the school's authorization to use those funds will expire on June 30, 2011.

The purpose of this Act is to:

(1) Extend the authorization that allows the John A. Burns school of medicine a portion of Hawaii tobacco settlement special fund moneys for annual operating expenses until 2015 while reducing the portion of fund moneys each fiscal year until the fiscal year ending on June 30, 2015;

(2) Establish a school of public health; and

(3) Allocate a portion of the University revenue-undertakings fund for the establishment of the school of public health.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304A- University of Hawaii school of public health special fund. (a) There is established the University of Hawaii school of public health special fund, to be administered and expended by the University of Hawaii.

(b) The following shall be deposited into the special fund:

(1) Appropriations by the legislature;

(2) Appropriations pursuant to section 328L-2(b);

(3) Grants, donations, gifts, or other income received for the purposes of the special fund; and

(4) Interest earned or accrued on moneys in the special fund.

(c) The moneys in the special fund shall be used to finance the establishment of a school of public health, to be built and operated independent of the John A. Burns school of medicine. Once established the school of public health shall include a course of study dedicated to the prevention of tobacco abuse, including education and outreach.

SECTION 3. Section 328L-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The fund shall be used for the purpose of receiving, allocating, and appropriating the tobacco settlement moneys as follows:

(1) Fifteen per cent shall be appropriated into the emergency and budget reserve fund under section 328L-3;

(2) Twenty-five per cent shall be appropriated to the department for purposes of section 328L-4;

(3) Six and one-half per cent shall be appropriated into the Hawaii tobacco prevention and control trust fund under section 328L-5; and

(4) Twenty-eight per cent shall be appropriated into the university revenue-undertakings fund created in section 304A-2167.5 to be applied to the payment of the principal of and interest on, and to generate required coverage, if any, for, revenue bonds issued by the board of regents of the University of Hawaii to finance the cost of construction of a university health and wellness center, including a new medical school facility, to be situated on the island of Oahu, for the succeeding fiscal year; and the payment of annual operating expenses incurred by the new medical school facility; provided that this amount shall be reduced by per cent each fiscal year starting with fiscal year 2012-2013 and that amount shall be deposited into the University of Hawaii school of public health special fund; provided further that any moneys in excess of the amounts required under this paragraph shall be transferred in the succeeding fiscal year to the emergency and budget reserve fund under section 328L-3; and

(5) Twenty-five and one-half per cent shall be deposited to the credit of the state general fund."

SECTION 4. Act 264, Session Laws of Hawaii 2007, as amended by section 22 of Act 16, Session Laws of Hawaii 2008, is amended by amending section 4 to read as follows:

"SECTION 5. This Act shall take effect on July 1, 2007, and shall be repealed on June 30, [~~2011;~~] 2015; provided that section 328L-2, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act."

SECTION 6. The University of Hawaii shall prepare a detailed accounting of all revenues and expenditures relating to:

(1) Moneys appropriated into the university revenue-undertakings fund established under section 304A‑2167.5, Hawaii Revised Statutes; and

(2) Any moneys used for the operating costs of the medical school facility.

This accounting information shall be submitted to the legislature no later than twenty days prior to the convening of the regular sessions of 2012, 2013, 2014, and 2015.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2050, and shall be repealed on June 30, 2015; provided that section 328L‑2, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of Act 264, Session Laws of Hawaii 2007.

THE SENATE	S.B. NO.	239
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 2
STATE OF HAWAII		H.D. 1