HOUSE OF REPRESENTATIVES	H.B. NO.	545
TWENTY-EIGHTH LEGISLATURE, 2015		H.D. 1
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

 

 

RELATING TO FUNDS.

 

 

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

 

PART I

     SECTION 1.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§304A-    University of Hawaii quasi-endowment trust fund.  There is established the University of Hawaii quasi-endowment trust fund into which shall be deposited income derived from the university's endowment fund.  Income deposited into this account may be expended by the university as set forth by the board of regents in policies and guidelines for costs and expenses associated with student financial aid programs, including scholarships and student support services, awards, and project opportunities for the university."

PART II

     SECTION 2.  The purpose of this part is to reclassify the Hawaii educator loan program special fund as a revolving fund.

     SECTION 3.  Section 304A-701, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  In accordance with chapter 103D, the university may enter into written contracts with collection agencies for the purpose of collecting delinquent loans.  All payments collected, exclusive of a collection agency's commissions, shall revert, and be credited, to the Hawaii educator loan program [special] revolving fund.  A collection agency that enters into a written contract with the university for the collection of delinquent loans pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract."

     SECTION 4.  Section 304A-703, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-703[]]  Capacity of minors in qualifying for Hawaii educator loans.  Any student otherwise qualifying for a loan under the Hawaii educator loan program [special] revolving fund shall not be disqualified because the student is under the age of eighteen years, and for the purpose of applying for, receiving, and repaying the loan, any such person shall be deemed to have full legal capacity to act and shall have all rights, powers, privileges, and obligations of an adult with respect thereto."

     SECTION 5.  Section 304A-704, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-704[]]  Rules governing Hawaii educator loan program [special] revolving fund.  The university may adopt rules to implement the Hawaii educator loan program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements."

     SECTION 6.  Section 304A-2161, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2161[]]  Hawaii educator loan program [special] revolving fund.  There is established the Hawaii educator loan program [special] revolving fund, for the purpose of providing loans pursuant to section [[]304A-701[]].  [The following may be deposited into the special fund:  appropriations] Appropriations made by the legislature, private contributions, repayment of loans, including interest and payments received on account of principal, and moneys from other sources[; provided that:

     (1)  Moneys on balance in the special fund at the close of each fiscal year shall remain in that fund and shall not lapse to the credit of the general fund; and

     (2)] shall be deposited into the revolving fund and shall be expended by the university.  An amount from the [special] revolving fund not exceeding five per cent of the total amount of outstanding loans may be set by the university to be used for administrative expenses incurred in administering the [special] revolving fund."

PART III

     SECTION 7.  The purpose of this part is to repeal the University of Hawaii alumni special fund.

     The legislature finds that the fund no longer serves the purpose for which it was created and should be repealed.

     SECTION 8.  Section 304A-2175, Hawaii Revised Statutes, is repealed.

     ["[§304A-2175]  University of Hawaii alumni special fund.  There is established the University of Hawaii alumni special fund into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni.  Funds deposited into this special fund may be expended by the university for all costs associated with conducting alumni affairs, activities, and programs for the university system, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audiovisual, musical, and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements."]

PART IV

     SECTION 9.  The purpose of this part is to repeal the animal research farm, Waialee, Oahu special fund.

     The legislature finds that the fund no longer serves its original purpose, does not meet the criteria for a special fund, and should be repealed.

     SECTION 10.  Section 304A-2177, Hawaii Revised Statutes, is repealed.

     ["[§304A-2177]  Animal research farm, Waialee, Oahu special fund.  There is established the animal research farm, Waialee, Oahu special fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources of the University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies.  Funds deposited into this special fund shall be expended for animal research, and services and supplies related thereto."]

PART V

     SECTION 11.  The purpose of this part is to reclassify the professional student exchange program special fund as a revolving fund.

     SECTION 12.  Section 304A-2179, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-2179[]]  Professional student exchange program [special] revolving fund.  (a)  There is established a professional student exchange program [special] revolving fund to be administered and expended by the Hawaii commission.

     (b)  The following moneys shall be deposited into the [special] revolving fund:

     (1)  Principal and interest payments received as repayment of financial support from former or current participants of the professional student exchange program, pursuant to section 304A‑3209; and

     (2)  Interest earned or accrued on moneys in the [special] revolving fund.

     (c)  Moneys in the [special] revolving fund shall be expended to:

     (1)  Support the professional student exchange program's activities, including the provision of financial support to participants at Western Interstate Commission for Higher Education receiver institutions; and

     (2)  Enforce the collection of delinquent obligations."

PART VI

     SECTION 13.  The purpose of this part is to repeal the career and technical training projects revolving fund for the University of Hawaii at Hilo.

     The legislature finds that the revolving fund is not necessary.

     SECTION 14.  Section 304A-2268, Hawaii Revised Statutes, is repealed.

     ["[§304A-2268]  Career and technical training projects revolving fund; University of Hawaii at Hilo.  There is established the career and technical training projects revolving fund for the career and technical training projects of the community colleges and the University of Hawaii at Hilo into which shall be deposited the receipts from fees for services, supplies, and use of equipment provided by or in connection with these projects.  Funds deposited in this account shall be expended for vocational and technical training projects, and supplies, equipment, and services related thereto."]

PART VII

     SECTION 15.  The purpose of this part is to repeal the conference center revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii at Hilo.

     The legislature finds that the fund does not serve its original purpose, experiences minimal activity, and should be repealed.

     SECTION 16.  Section 304A-2272, Hawaii Revised Statutes, is repealed.

     ["[§304A-2272]  Conference center revolving fund; University of Hawaii at Hilo.  There is established the conference center revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii at Hilo.  All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund.  The dean of the college of continuing education and community service is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audiovisual equipment, and conference supplies and materials."]

PART VIII

     SECTION 17.  The purpose of this part is to repeal the Senator Hiram L. Fong scholarship program endowment trust fund.

     The legislature finds that the fund does not serve the purpose for which it was created and should be repealed.

     SECTION 18.  Section 304A-2353, Hawaii Revised Statutes, is repealed.

     ["[§304A-2353]  The Senator Hiram L. Fong scholarship program; endowment trust.  (a)  There is established the Senator Hiram L. Fong scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

     (b)  Awards shall be granted annually to one female student and one male student who:

     (1)  Are graduates of a public high school in the State;

     (2)  Are upperclassmen at the university;

     (3)  Submit winning essays to the board of regents on the senator's contributions to Hawaii;

     (4)  Have a demonstrated commitment to local community issues, as shown by volunteer work and participation in community organizations; and

     (5)  Have a demonstrated interest and knowledge of the history of immigration to Hawaii.

     (c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

     (1)  Pay for the costs of tuition and fees for a single academic year;

     (2)  Pay for the costs of textbooks and other instructional materials for a single academic year;

     (3)  Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

     (4)  Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

     (d)  The board of regents shall adopt rules to implement the Senator Hiram L. Fong scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

     (e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Hiram L. Fong scholarship program."]

PART IX

     SECTION 19.  The purpose of this part is to repeal the Senator Oren E. Long scholarship program endowment trust.

     The legislature finds that the fund does not serve the purpose for which it was created and should be repealed.

     SECTION 20.  Section 304A-2354, Hawaii Revised Statutes, is repealed.

     ["[§304A-2354]  The Senator Oren E. Long scholarship program; endowment trust.  (a)  There is established the Senator Oren E. Long scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

     (b)  Awards shall be granted annually to one female student and one male student who:

     (1)  Are graduates of a public high school in the State;

     (2)  Are upperclassmen at the university; and

     (3)  Submit winning essays to the board of regents on the senator's contributions to Hawaii.

     (c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

     (1)  Pay for the costs of tuition and fees for a single academic year;

     (2)  Pay for the costs of textbooks and other instructional materials for a single academic year;

     (3)  Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

     (4)  Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

     (d)  The board of regents shall adopt rules to implement the Senator Oren E. Long scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

     (e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Oren E. Long scholarship program."]

PART X

     SECTION 21.  The purpose of this part is to repeal the Hawaii health corps revolving fund.

     The legislature finds that the fund is inactive and should be repealed.

     SECTION 22.  Section 309H-6, Hawaii Revised Statutes, is repealed.

     ["[§309H-6]  Hawaii health corps revolving fund.  (a)  There is established in the treasury of the State the Hawaii health corps revolving fund, which shall be administered by the University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene, and into which shall be deposited:

     (1)  Any funds appropriated by the legislature for the Hawaii rural health care provider loan repayment program;

     (2)  Gifts, donations, and grants from public agencies and private persons;

     (3)  Reimbursements of loan repayments under the Hawaii rural health care provider loan repayment program;

     (4)  Proceeds of the operations of the Hawaii health corps program; and

     (5)  Interest earned or accrued on moneys deposited into the fund.

     (b)  The University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene may expend moneys from the fund for the purposes of this chapter, including the operational expenses of the Hawaii health corps program."]

PART XI

     SECTION 23.  The following funds are abolished:

     (1)  The hurricane Iniki insurance proceeds special fund administratively established in 1993 and administered by the University of Hawaii; and

     (2)  The agency fund trust account administratively established prior to July 1985 and administered by the University of Hawaii,

and any unencumbered balances remaining shall lapse to the credit of the general fund.

PART XII

     SECTION 24.  On July 1, 2015, all unencumbered balances remaining in the accounts and funds repealed by this Act shall lapse to the credit of the general fund.

PART XIII

     SECTION 25.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 26.  This Act shall take effect on July 1, 2015.

 

 

Report Title:

University of Hawaii; Non-General Funds; Repeal; Transfer of Balances; Establishment

 

Description:

Repeals various non-general funds and accounts and transfers the unencumbered balances to the general fund.  Establishes the University of Hawaii quasi-endowment trust fund.  Makes conforming amendments.  (SD1)

 

 

 

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