HOUSE OF REPRESENTATIVES	H.B. NO.	1071
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE UNIVERSITY OF HAWAII BOARD OF REGENTS INDEPENDENT AUDIT COMMITTEE.

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

SECTION 1. Section 304A-321, Hawaii Revised Statutes, is amended as follows:

(1) By amending subsection (b) to read as follows:

"(b) The independent audit committee shall consist of at least three members but not more than five members who shall be appointed by the chairperson of the board of regents, from among the members of the board of regents, except as provided in this subsection. The chair of the independent audit committee shall be selected [by and from among its members.] in a manner consistent with the bylaws of the board of regents.

The independent audit committee shall include one or more individuals with financial expertise. [If no member of the board of regents has the requisite skills, the board of regents shall execute other arrangements, which may include the appointment of members of the general public who possess the requisite financial expertise to the independent audit committee to ensure that the independent audit committee has the capacity to carry out its duties.]"

(2) By amending subsection (f) to read as follows:

"(f) The independent audit committee shall engage in [operations] oversight relating to enterprise risk management including:

(1) Providing oversight of risk management, which shall include determining overall strategy and influencing the university's risk philosophy;

(2) Inquiring of the president of the University of Hawaii, the chief financial officer of the university, and external auditors about significant risks or exposures faced by the university;

(3) Assessing steps that the president of the University of Hawaii has taken or proposes to take to minimize those risks to the university and periodically reviewing compliance with those steps; and

(4) Reviewing with the general counsel of the University of Hawaii, external auditors, external counsel, and the chief financial officer of the university legal and regulatory matters that, in the opinion of the president of the University of Hawaii, may have a material impact upon the financial statements, related organization compliance policies, and programs and reports received from regulators."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

University of Hawaii Board of Regents; Independent Audit Committee

Description:

Allows the chair of the Independent Audit Committee of the University of Hawaii Board of Regents to be selected in a manner consistent with its bylaws and makes other clarifying amendments.

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