THE SENATE	S.B. NO.	2862
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

relating to THE UNIVERSITY OF HAWAII.

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

SECTION 1. The legislature finds that Act 115, Session Laws of Hawaii 1998, was enacted in response to the economic revitalization task force's principal recommendation to provide greater autonomy to the University of Hawaii to allow the university to fulfill their constitutional role and administration of its constitutionally-designated assets and public trust undertakings. Unlike most state agencies, the University of Hawaii has the authority to transfer appropriated funds and positions among programs and between fiscal quarters without legislative authorization. The university is currently required to account for these transfers in fiscal year-end reports to the legislature.

The legislature further finds that as a matter of statewide concern, the university's financial flexibility should be transparent and subject to more frequent reporting requirements for legislative oversight.

The purpose of this Act is to require the University of Hawaii to report these types of transfers to the legislature within thirty days for transparency and oversight of the university.

SECTION 2. Section 37-74, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) No appropriation transfers or changes between programs or agencies shall be made without legislative authorization; provided that:

(1) Authorized transfers or changes, when made, shall be reported to the legislature;

(2) Except with respect to appropriations to fund financing agreements under chapter 37D, the University of Hawaii may transfer appropriated funds and positions for the operating cost category among programs, among cost elements in a program, and between quarters, as applicable; except with respect to appropriations to fund financing agreements under chapter 37D, the department of education may transfer appropriated funds and positions for the operating cost category among programs and among cost elements in a program, and between quarters, as applicable; and the Hawaii health systems corporation and its regional system boards may transfer special fund appropriations among regional system hospital facilities as applicable and as mutually agreed to by the corporation and the respective regional system board; provided that the Hawaii health systems corporation and the regional system boards shall maintain the integrity and services of each individual regional system and shall not transfer appropriations out of any regional system that would result in a reduction of services offered by the regional system, with due regard for statutory requirements, changing conditions, the needs of the programs, and the effective utilization of resources; [and]

(3) The university and the department of education shall account for each transfer implemented under this subsection in quarterly reports to the governor and annual reports at the end of each fiscal year to the legislature and the governor, which shall be prepared in the form and manner prescribed by the governor and shall include information on the sources and uses of the transfer[.]; and

(4) The university shall submit a report to the legislature for each transfer implemented under this subsection within thirty days of the transfer."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Government; Budget; University of Hawaii

Description:

Requires the University of Hawaii to submit a report to the legislature within thirty days of each appropriation transfer or changes between programs.

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