SB307.DOC

THE SENATE	S.B. NO.	3073073
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 2
STATE OF HAWAII		H.D. 1
		PROPOSED

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 five-year pilot program for a school of aviation, commencing on July 1, 2016, and terminating on June 30, 2021, under which the school of aviation shall be financially and managerially independent.

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

(c) The school of aviation shall not be subject to any fees or assessments that may generally be levied by the University of Hawaii system upon its programs, departments, and schools.

§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 a report on its actions to establish, administer, and operate the school of aviation within twenty days following the completion of each semester to the legislature and board of regents, which 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 and program ID 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 for or expended by or on behalf of the school of aviation without the prior approval of the legislature."

SECTION 2. Commencing not later than July 1, 2019, the University of Hawaii board of regents shall perform a program evaluation to consider whether the school of aviation should be continued. The main criterion of the evaluation shall be the ability of the school of aviation to fiscally sustain its operations during the five-year pilot program. If the University of Hawaii board of regents finds, as a result of its program evaluation, that the school of aviation meets the criterion for fiscal sustainability, the terms and conditions of the program shall be adopted and implemented as the operational structure for the school of aviation. If the University of Hawaii board of regents finds, as a result of its program evaluation, that the school of aviation is not fiscally sustainable, then the University of Hawaii board of regents shall report its findings to the legislature no later than twenty days prior to the convening of the regular session of 2020, and 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.

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, 2016, and shall be repealed on June 30, 2021.