SCR29 SD1

WHEREAS, Mauna Kea is the most significant cultural and astronomical site in the world; and

WHEREAS, the summit region of Mauna Kea is a spiritual and special place of global significance that is home to cultural landscapes, fragile alpine habitats, and historical and archaeological treasures, as well as endemic species found nowhere else on the planet; and

WHEREAS, the protection and preservation of Mauna Kea through proper management and stewardship is of statewide concern; and

WHEREAS, since 1998, four audits by the State Auditor have been critical of the management, stewardship, and protection of Mauna Kea; and

WHEREAS, although significant changes have occurred on Mauna Kea since the 1998 audit, negative experiences over the past fifty years have eroded public confidence and demonstrated the critical need for a financial audit to look into the University of Hawaii's activities related to Mauna Kea; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2018, the House of Representatives concurring, that the State Auditor is requested to conduct a financial audit of the University of Hawaii's activities related to Mauna Kea; and

BE IT FURTHER RESOLVED that the financial audit be limited to the following:

(1) The University of Hawai‘i System, including but not limited to the legal affairs and university general counsel office of the University of Hawai‘i System for any expenditures related to Mauna Kea;

(2) The University of Hawai‘i institute for astronomy;

(3) The research corporation of the University of Hawai‘i;

(4) The office of Mauna Kea management, including but not limited to permits issued by the office to commercial tour operators to conduct tours on Mauna Kea and all revenues generated from those tours since 2005;

(5) The Mauna Kea observatories, including but not limited to patents, commercial property, and intellectual rights;

(6) Mauna Kea observatories support services;

(7) The Mauna Kea visitor information station;

(8) All financial expenditures from the University of Hawai‘i research and training revolving fund as it relates to Mauna Kea;

(9) All contracts or professional services used for but not limited to:

(A) The Mauna Kea comprehensive management plan;

(B) Creating, implementing, and evaluating the comprehensive management plan; and

(10) Whether and to what extent the University of Hawai‘i has meaningfully calculated the cost of implementing, in a timely and ongoing manner, the Mauna Kea comprehensive management plan and its subplans;

(11) Whether and to what extent the University of Hawai‘i has sought to identify revenue sources and ensure sufficient funding and other resources to implement the Mauna Kea comprehensive management plan and its subplans in a timely manner;

(12) Whether and to what extent the University of Hawai‘i has worked to establish and implement policies for leases, subleases, and permits, including through the proportional capture of the monetized value of benefits realized by lessees, sublessees, and permittees, to generate sufficient revenues to implement the Mauna Kea comprehensive management plan and its subplans and to ensure that trust benefits flow equally to all beneficiaries of the public trust;

(13) Whether and to what extent the University of Hawai‘i has sought to ensure a transparent and fair negotiation process for telescope subleases and commercial permittees that allows for meaningful public review and input into the proposed use of public trust resources on Mauna Kea;

(14) The value of the opportunity costs, including the value of foregone revenue-generating opportunities, as well as the value of natural and cultural resources damaged, substantial bodily injury and death, and property damage, that can be reasonably attributed to the failure of the University of Hawai‘i to adequately balance observatory development with its public trust obligations; and

(15) A comprehensive breakdown of where the University of Hawai‘i has obtained funding for its activities relating to Mauna Kea, including a list of internal funding sources, and how the University of Hawai‘i has specifically expended such funding and dedicated other resources on activities relating to Mauna Kea, including but not limited to litigation, sublease solicitation and negotiation, other personnel and contractor costs, and the implementation of specific action items in the Mauna Kea comprehensive management plan and its subplans; and

BE IT FURTHER RESOLVED that the State Auditor submit a report of its findings and any recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2020; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the State Auditor, Chair of the Board of Regents of the University of Hawaii, President of the University of Hawaii, Vice President of Legal Affairs of the University of Hawaii, Office of the University General Counsel, Chair of the Board of Directors of the Research Corporation of the University of Hawaii, Office of Mauna Kea Management, and Department Chairperson of the Department of Physics and Astronomy at the University of Hawaii at Hilo.

Report Title:

University of Hawaii; Mauna Kea; Audit

THE SENATE	S.C.R. NO.	29
TWENTY-NINTH LEGISLATURE, 2018		S.D. 1
STATE OF HAWAII