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THE SENATE |
S.B. NO. |
2576 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO REIMBURSEMENTS FOR STATE CONTRIBUTIONS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. After the creation of the tuition and fees special fund by Act 161, Session Laws of Hawaii 1995, many University of Hawaii positions that were previously funded by the general fund instead became funded by the tuition and fees special fund. Section 87A-39, Hawaii Revised Statutes, requires the University of Hawaii to reimburse the State for contributions made by the State pursuant to sections 87A‑32, 87A‑33, 87A‑34, 87A-35, 87A-36, and 87A-37, Hawaii Revised Statutes, on account of University of Hawaii employees whose compensation is paid in whole or in part from funds other than the general fund.
In addition, section 88-125, Hawaii Revised Statutes, requires the University of Hawaii to reimburse the State for the respective amounts payable by the State to cover the liability of the State to the various funds of the employeesꞌ retirement system of the State. The department of budget and finance and the University of Hawaii have subsequently agreed that reimbursements pursuant to sections 87A‑39 and 88‑125, Hawaii Revised Statutes, will be paid by the general fund to avoid an unintended consequence that would have forced the University of Hawaii to pay for fringe benefits costs that it previously did not have to pay.
The legislature finds that, without this agreement, the University of Hawaii would have been forced to consider alternatives, such as increased tuition rates or staff reductions, which would have resulted in a reduction in services. The legislature further finds that, without this agreement, the legislature would also have had to continue providing general funds for University of Hawaii positions or implement reduction in force measures for positions that it no longer appropriated general funds for.
The purpose of this Act is to provide the University of Hawaii with certain exemptions from sections 87A‑39 and 88‑125, Hawaii Revised Statutes, and to codify in statute, the cost‑sharing agreement between the University of Hawaii and the department of budget and finance.
SECTION 2. Section 87A-39, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All state agencies having control of funds other than the general fund shall reimburse the State for contributions made by the State pursuant to sections 87A-32, 87A-33, 87A-34, 87A-35, 87A-36, and 87A-37 on account of agency employees whose compensation is paid in whole or part from funds other than the general fund. Certain positions of the University of Hawaii that are authorized by the legislature for which salary costs are paid in whole or in part by the tuition and fees special fund may be exempted from this subsection; provided that if positions are exempted from reimbursement under this subsection, the university shall submit a report to the legislature annually in conformance with the reporting requirements; and provided further that the salary costs shall be capped at $ but that cap shall be adjusted by passage of a concurrent resolution."
SECTION 3. Section 88-125, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each of the
departments and agencies hereinafter described, the office of Hawaiian affairs,
and the Hawaii health systems corporation shall reimburse the State for the
respective amounts payable by the State to cover the liability of the State to
the various funds of the system on account of the employees in the departments
and agencies, the trustees of the office of Hawaiian affairs, and the employees
of the Hawaii health systems corporation.
This provision shall apply to any department or agency of the State that
is authorized by law to fix, regulate, and collect rents, rates, fees, or charges
of any nature. This subsection shall not
apply as to rental units receiving federal subsidies until approval has been
obtained from the appropriate federal agency. Certain positions of
the University of Hawaii that are authorized by the legislature for which
salary costs are paid in whole or in part by the tuition and fees special fund
may be exempted from this subsection; provided that if positions are exempted
from reimbursement under this subsection, the university shall submit a report
to the legislature annually in conformance with the reporting requirements; provided
further that the salary costs shall be capped at $
but that cap shall be adjusted by passage of a concurrent resolution."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
Report Title:
University of Hawaii; Tuition and Fees Special Fund; Reporting
Description:
Specifies exemptions for the University of Hawaii from sections 87A-39 and 88-125, Hawaii Revised Statutes, to enhance transparency and accountability regarding fringe benefit reimbursement exemptions under the cost-sharing agreement between the University of Hawaii and Department of Budget and Finance. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.