THE SENATE	S.B. NO.	3073
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO THE UNIVERSITY OF HAWAII AT HILO.

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

     SECTION 1.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new subpart to part IV to be appropriately designated and to read as follows:

" . SCHOOL OF AVIATION

§304A-    University of Hawaii at Hilo; school of aviation; pilot program.  (a)  There is established at the University of Hawaii at Hilo a six-year pilot program for a school of aviation, commencing on July 1, 2016, and terminating on June 30, 2022, under which the school of aviation shall be financially independent.

     (b)  The University of Hawaii system may subsidize or provide financial assistance to the school of aviation.

§304A-    School of aviation; pilot program operating requirements.  (a)  In administering the school of aviation pilot program, the University of Hawaii at Hilo shall submit to the legislature and board or regents a report on its actions to establish, administer, and operate the school of aviation within twenty days following the completion of each semester.  The report shall include an accounting of:

     (1)  All operating costs;

     (2)  All capital costs;

     (3)  All tuition generated; and

     (4)  All other revenues collected.

     (b)  The University of Hawaii at Hilo shall:

     (1)  Establish and use a separate accounting system for the school of aviation pilot program;

     (2)  Report all capital construction costs of the school of aviation program; and

     (3)  Ensure that all programs under the school of aviation obtain all necessary accreditations.

     (c)  No general funds shall be appropriated or expended for costs directly associated with the school of aviation without the prior approval of the legislature."

     SECTION 2.  (a)  No later than June 30, 2022, the school of aviation, as a department within the University of Hawaii at Hilo, shall be financially independent.  If the school is not financially independent, the University of Hawaii board of regents shall initiate proceedings to terminate the school of aviation pilot program and transfer control of all property and management, financial, and other responsibilities to the University of Hawaii board of regents.

     (b)  As used in this section, "financially independent" means the tuition revenue paid by students is equal to or greater than the operating and capital expenditures of the program on a fiscal year basis.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2016-2017 for implementation costs, including salaries and facilities, of establishing a school of aviation at the University of Hawaii at Hilo; provided that no funds appropriated by this section shall be allotted or expended until the school of aviation is established by the University of Hawaii board of regents.

     The sum appropriated shall be expended by the University of Hawaii at Hilo for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2525, and shall be repealed on June 30, 2022.

Report Title:

UH Hilo; School of Aviation; Pilot Program; Appropriation

Description:

Establishes a six-year school of aviation pilot program at the University of Hawaii at Hilo.  Appropriates funds.  Repeals June 30, 2022.  (SB3073 HD1)

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