Bill Text: HI SB1212 | 2012 | Regular Session | Introduced

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Bill Title: UH; Fiscal Autonomy

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1212 Detail]

Download: Hawaii-2012-SB1212-Introduced.html

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THE SENATE	S.B. NO.	1212
TWENTY-SIXTH LEGISLATURE, 2011
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.  Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

    [(3)  Special funds of the University of Hawaii;

     (4)] (3)  State educational facilities improvement special fund;

    [(5)] (4)  Convention center enterprise special fund under section 201B-8;

    [(6)] (5)  Special funds established by section 206E-6;

    [(7)] (6)  Housing loan program revenue bond special fund;

    [(8)] (7)  Housing project bond special fund;

    [(9)] (8)  Aloha Tower fund created by section 206J-17;

   [(10)] (9)  Funds of the employees' retirement system created by section 88-109;

   [(11)] (10) Unemployment compensation fund established under section 383-121;

   [(12)] (11) Hawaii hurricane relief fund established under chapter 431P;

   [(13)] (12) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

   [(14)] (13) Tourism special fund established under section 201B-11;

   [(15)] (14) Universal service fund established under section 269-42;

   [(16)] (15) Emergency and budget reserve fund under section 328L-3;

   [(17)] (16) Public schools special fees and charges fund under section 302A-1130;

   [(18)] (17) Sport fish special fund under section 187A-9.5;

   [(19)] (18) Glass advance disposal fee established by section 342G-82;

   [(20)  Center for nursing special fund under section 304A-2163;

    (21)] (19) Passenger facility charge special fund established by section 261-5.5;

   [(22)] (20) Court interpreting services revolving fund under section 607-1.5;

   [(23) Hawaii cancer research special fund;

    (24)] (21) Community health centers special fund;

   [(25)] (22) Emergency medical services special fund;

   [(26)] (23) Rental motor vehicle customer facility charge special fund established under section 261-5.6; and

   [(27)] (24) Shared services technology special fund under section 27-43,

shall deduct five per cent of all receipts of all special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State.  All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers.  To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund.  No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

     SECTION 2.  Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each special fund, except the:

     (1)  Transportation use special fund established by section 261D-1;

     (2)  Special out-of-school time instructional program fund under section 302A-1310;

     (3)  School cafeteria special funds of the department of education;

    [(4)  Special funds of the University of Hawaii;

     (5)] (4)  State educational facilities improvement special fund;

    [(6)] (5)  Special funds established by section 206E-6;

    [(7)] (6)  Aloha Tower fund created by section 206J-17;

    [(8)] (7)  Funds of the employees' retirement system created by section 88-109;

    [(9)] (8)  Unemployment compensation fund established under section 383-121;

   [(10)] (9)  Hawaii hurricane relief fund established under section 431P-2;

   [(11)] (10) Convention center enterprise special fund established under section 201B-8;

   [(12)] (11) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

   [(13)] (12) Tourism special fund established under section 201B-11;

   [(14)] (13) Universal service fund established under section 269-42;

   [(15)] (14) Emergency and budget reserve fund under section 328L-3;

   [(16)] (15) Public schools special fees and charges fund under section 302A-1130;

   [(17)] (16) Sport fish special fund under section 187A-9.5;

   [(18)  Center for nursing special fund under section 304A-2163;

    (19)] (17) Passenger facility charge special fund established by section 261-5.5;

   [(20)] (18) Court interpreting services revolving fund under section 607-1.5;

   [(21)  Hawaii cancer research special fund;

    (22)] (19) Community health centers special fund;

   [(23)] (20) Emergency medical services special fund;

   [(24)] (21) Rental motor vehicle customer facility charge special fund established under section 261-5.6; and

   [(25)] (22) Shared services technology special fund under section 27-43,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

     SECTION 3.  Section 37-34, Hawaii Revised Statutes, is amended to read as follows:

     "§37-34  Appropriations available for allotment; estimate of expenses.  (a)  No appropriation to which the allotment system is applicable shall become available to any department or establishment for expenditure during any allotment period until the department or establishment submits an estimate to the director of finance, at whatever time prior to the beginning of the allotment period and in whatever form as the director may prescribe, of the amount required to carry on the work of the department or establishment during that period and until the estimate is approved, increased, or decreased by the director and funds are allotted pursuant to section 37-35.

     [(b)  Before appropriations for the University of Hawaii become available to the university, the university shall advise the governor and the director of finance of the amount necessary for payments for financing agreements under chapter 37D, the governor, with the assistance of the director of finance, as may be necessary, shall establish allotment ceilings for each source of funding of all of the appropriations of the University of Hawaii for each allotment period and shall advise the university of these determinations.

     (c)] (b)  Any other law to the contrary notwithstanding, general fund appropriations for the operating expenses of public health facilities shall be made available to the public health facilities for expenditure during any allotment period."

     SECTION 4.  Section 37-35, Hawaii Revised Statutes, is amended to read as follows:

     "§37-35  Estimated expenditures; approval.  The director of finance shall review all estimates submitted under section 37-34 and, having due regard for:

     (1)  The probable further needs of the department or establishment for the remainder of the term for which the appropriation was made;

     (2)  The terms and purposes of the appropriation, the progress of collection of revenues, and condition of the treasury; and

     (3)  The probable receipts and total cash requirements for the ensuing quarter, shall approve, increase, or reduce the amount of the estimate[;

provided that the director of finance shall approve the estimates submitted by the University of Hawaii when:

     (1)  The sum of the estimates for each funding source does not exceed the applicable allotment ceilings established by the governor under section 37-34;

     (2)  The progress of collection of revenues, the condition of the treasury, and the probable receipts and total cash requirements for the ensuing quarter permit; and

     (3)  All other legal requirements are satisfied].

The director shall act promptly upon all estimates and notify each department or establishment of its allotment, and shall notify the comptroller."

     SECTION 5.  Section 37-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:

    [(1)  For the University of Hawaii, the director of finance may modify or amend any previous allotment only upon application of or notice to the university, and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;

     (2)] (1)  The modification or amendment shall be made only to avoid an illegal result or in anticipation of a revenue shortfall;

    [(3)] (2)  No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; and

    [(4)] (3)  No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."

     SECTION 6.  Section 37-37, Hawaii Revised Statutes, is amended to read as follows:

     "§37-37  Reduction.  (a)  [Except as provided in subsection (b), when] When the director of finance determines at any time that the probable receipts from taxes or any other sources for any appropriation will be less than was anticipated, and that consequently the amount available for the remainder of the term of the appropriation or for any allotment period will be less than the amount estimated or allotted therefor, the director shall, with the approval of the governor and after notice to the department or establishment concerned, reduce the amount allotted or to be allotted; provided that no reduction reduces any allotted amount below the amount required to meet valid obligations or commitments previously incurred against the allotted funds.

     [(b)  For the University of Hawaii, when the director of finance determines at any time that the probable receipts from taxes or any other sources for any appropriation will be less than was anticipated, and that consequently the amount available for the remainder of the term of the appropriation or for any allotment period will be less than the amount estimated or allotted therefor, the director shall advise the governor of the situation, and the governor shall redetermine the allotment ceiling for the affected source or sources of funding pursuant to section 37-34, and shall advise the university and make a public declaration ten days prior to the effective date of the redetermination.  The university, not more than twenty days after the governor's notification, shall submit revised estimates consistent with the governor's redetermination to the director of finance.  Otherwise, the director of finance shall modify, amend, or reduce any allotment of the university to comply with the governor's redetermination; provided that no reduction shall reduce any allotted amount below the amount required to meet valid obligations or commitments previously incurred against the allotted funds.

     (c)] (b)  Prior to the implementation of any reduction in allotment proposed by the director of finance or the governor pursuant to subsection (a) [or (b)], in which the sum of the reductions exceed 2.5 per cent of the total general fund appropriation made by the legislature in any fiscal year, the director of finance shall notify the president of the senate, the speaker of the house of representatives, and the chairpersons of the senate committee on ways and means and the house of representatives committee on finance, respectively, of the director's intent."

     SECTION 7.  Section 37-53, Hawaii Revised Statutes, is amended to read as follows:

     "§37-53  Transfer of special funds.  At any time during a fiscal year, notwithstanding any other law to the contrary, any department may, with the approval of the governor or the director of finance if so delegated by the governor, transfer from any special fund relating to such department to the general revenues of the State all or any portion of moneys determined to be in excess of fiscal year requirements for such special fund, except for special funds under the control of the department of transportation relating to highways, airports, transportation use, and harbors activities, and special funds under the control of the Hawaii health systems corporation or subaccounts under the control of its regional system boards[, and special funds of the University of Hawaii].  At any time the department of transportation, with the approval of the governor or the director of finance if so delegated by the governor, may transfer from any special fund under the control of the department of transportation, or from any account within any such special fund, to the general revenues of the State or to any other special fund under the control of the department of transportation all or any portion of moneys determined to be in excess of requirements for the ensuing twelve months determined as prescribed by rules adopted pursuant to chapter 91; provided that no such transfer shall be made which would cause a violation of federal law or federal grant agreements."

     SECTION 8.  Section 37-68, Hawaii Revised Statutes, is amended to read as follows:

     "§37-68  Responsibilities of agencies.  Under [such] rules as may be prescribed by the director of finance with the approval of the governor:

     (1)  Every agency assigned the task of developing programs and preparing program and financial plans, budgetary requests, and program performance reports shall develop such programs and prepare such plans, requests, and reports and submit the same to the director of finance at [such] the times, on [such] the forms, and in [such] a manner as the director may prescribe.  [For informational purposes, the University of Hawaii shall submit its program and financial plans, budgetary requests, and program performance reports to the legislature at the same time the university submits them to the director of finance.]  Where new programs are being proposed, every agency shall demonstrate that the program:

         (A)  Is an appropriate function of state government; and, as applicable

         (B)  Can be implemented by the public sector as cost-effectively as the private sector while meeting the same plans, goals, objectives, standards, measures of effectiveness, wage, salary, conditions of employment, and employee benefit programs of the State;

     (2)  Every agency administering state programs and every agency responsible for the formulation of programs and the preparation of program and financial plans, budgetary requests, and program performance reports, shall furnish the department of budget and finance all [such] documents and information as the department may from time to time require.  Each agency shall make available to the legislature and any member or committee of either house of the legislature, all documents and information as may be requested; and

     (3)  The director of finance or any employee of the department of budget and finance, when duly authorized, for the purpose of securing information, shall have access to and may examine any books, documents, papers, or records of any agency."

     SECTION 9.  Section 37-74, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

     "(c)  The department of budget and finance shall:

     (1)  Review each operations plan to determine:

         (A)  That it is consistent with the policy decisions of the governor and appropriations by the legislature;

         (B)  That it reflects proper planning and efficient management methods; and

         (C)  That appropriations have been made for the planned purpose and will not be exhausted before the end of the fiscal year;

          [provided that the department of budget and finance shall review the operations plan submitted by the University of Hawaii solely for consistency with the allotment ceilings established by the governor under section 37-34, appropriations by the legislature, the requirements of chapter 37D, and the status of revenues to support operations plans for all state programs;]

     (2)  Approve the operations plan if satisfied that it meets the requirements under paragraph (1).  Otherwise, the department of budget and finance shall require revision of the operations plan in whole or in part; and

     (3)  Modify or withhold the planned expenditures at any time during the appropriation period if the department of budget and finance finds that the expenditures are greater than those necessary to execute the programs at the level authorized by the governor and the legislature, or that state receipts and surpluses will be insufficient to meet the authorized expenditure levels[; provided that the planned expenditures for the University of Hawaii may be modified or withheld only in accordance with sections 37-36 and 37-37].

     (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 shall have the flexibility to 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 shall have the flexibility to 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 shall have the flexibility to 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."

     SECTION 10.  Section 37D-2, Hawaii Revised Statutes, is amended to read as follows:

     "§37D-2  Financing agreements.  (a)  There is hereby established and authorized the financing agreement program of the State.  Any agency desiring to acquire or improve projects through the financing agreement program established and authorized by this chapter shall submit a written request to the department providing any information that the department shall require.  Notwithstanding any other law to the contrary, and except for the Hawaii health systems corporation and its regional system boards, only with the approval by the attorney general as to form and legality and upon the written request of one or more agencies may the department enter into a financing agreement in accordance with this chapter, and only with the approval by the attorney general as to form and legality, and by the director as to fiscal responsibility, and upon the written request of an agency, the agency may enter into a financing agreement in accordance with this chapter, except that the department of education may enter into a financing agreement in accordance with section 36-32 with the concurrence of the director and with the approval of the attorney general as to form and legality[; and that the board of regents of the University of Hawaii may enter into a financing agreement in accordance with this chapter without the approval of the director and of the attorney general as to form and legality if the principal amount of the financing agreement does not exceed $3,000,000].  A financing agreement may be entered into by the department on behalf of one or more agencies, or by an agency, at any time (before or after commencement or completion of any improvements or acquisitions to be financed) and shall be upon terms and conditions the department finds to be advantageous.  In each case of a written request by the judiciary to participate in the financing agreement program, the department shall implement the request; provided that the related financing agreement shall be upon terms and conditions the department finds to be advantageous.  Any financing agreement entered into by the department without the approval, or by an agency without the approvals required by this section shall be void and of no effect.  A single financing agreement entered into by the department may finance a single item or multiple items of property to be used by multiple agencies or may finance a single item or multiple items of property to be used by a single agency.  If the financing agreement is by the department, the department shall bill any agency that benefits from property acquired with the proceeds of a financing agreement for the agency's pro rata share of:

     (1)  The department's costs of administration of the financing agreement program; and

     (2)  The financing costs, including the principal and interest components of the financing agreement and insurance premiums,

on a monthly or other periodic basis, and may deposit payments received in connection with the billings with a trustee as security for the financing agreement.  Any agency receiving such a bill shall be authorized and shall pay the amounts billed from available moneys.

     If a financing agreement is by an agency, the agency shall deposit on a monthly or other periodic basis with the department, payments from available moneys with respect to the agency's financing costs, including the principal and interest components of the financing agreement and insurance premiums, which payments the department may deposit with a trustee as security for the financing agreement.  The department may bill an agency for the department's costs of administering the agency's payments and the agency receiving such a bill shall be authorized to and shall pay the amounts billed from available moneys.

     (b)  Financing agreements shall be subject to the following limitations:

     (1)  Amounts payable by an agency to or upon the direction of the department in respect to a project and by the department or an agency under a financing agreement shall be limited to available moneys.  In no circumstance shall the department or an agency be obligated to pay amounts due under a financing agreement from any source other than available moneys.  If, by reason of insufficient available moneys or other reason, amounts due under a financing agreement are not paid when due, the lender may exercise any property right that the department or the agency has granted to it in the financing agreement, against the property that was purchased with the proceeds of the financing agreement, and apply the amounts so received toward payments scheduled to be made by the department or the agency under the financing agreement;

     (2)  No property rights may be granted in property unless the property is being acquired, is to be substantially improved, is to be refinanced with the proceeds of a financing agreement, or is land on which the property is located;

     (3)  Notwithstanding any other law to the contrary, and except for the Hawaii health systems corporation and its regional system boards, and as otherwise provided in this section with respect to the department of education [and the University of Hawaii], and except as provided in chapter 323F as to the Hawaii health systems corporation and its regional system boards, an agency shall not have the power to enter into a financing agreement, except as authorized by this chapter, and nothing in this chapter shall be construed to authorize the sale, lease, or other disposition of property owned by an agency;

     (4)  Except as otherwise provided in this section with respect to the department of education [and the University of Hawaii], the sale, assignment, or other disposition of any financing agreements, including certificates of participation relating thereto, shall require the approval of the director; and

     (5)  The department or the agency proposing to enter into a financing agreement shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for financing agreements."

     SECTION 11.  Section 40-1, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  With respect to the executive branch, except [the University of Hawaii until June 30, 2016,] the Hawaii tourism authority, and the department of education until June 30, 2015, the comptroller shall have complete supervision of all accounts.  The comptroller shall preaudit all proposed payments of $10,000 or more to determine the propriety of expenditures and compliance with executive orders and rules that may be in effect.  When necessary, the comptroller shall withhold approval of any payment.  Whenever approval is withheld, the department or agency concerned shall be promptly notified.  With respect to [the University of Hawaii,] the Hawaii tourism authority[,] and the department of education, the comptroller shall issue warrants for the release of funds for the operating costs of [the university,] the Hawaii tourism authority[,] or the department of education, as applicable, in amounts and at times mutually agreed upon by the governor or director of finance and [the university,] the Hawaii tourism authority[,] or department of education, as applicable; provided that:

     (1)  The amounts released shall not exceed the allotment ceilings for the respective funding sources of [the university's or] the department of education's appropriations established by the governor for an allotment period pursuant to section 37-34, or in the case of the Hawaii tourism authority, revenues received by the convention center enterprise special fund and the tourism special fund pursuant to section 237D-6.5; and

     (2)  The comptroller may issue warrants as an advance from the state treasury to [the University of Hawaii,] the Hawaii tourism authority[,] and the department of education to establish a checking account and provide working capital in amounts and at times mutually agreed upon by the governor or director of finance and [the University of Hawaii,] the Hawaii tourism authority[,] and the department of education.

The [University of Hawaii and the] department of education shall preaudit all proposed payments of $10,000 or more and shall preaudit samples of the population of proposed payments of less than $10,000; provided that the sample size comprises at least five per cent of the population, and is of a size that the chief financial [officers of the University of Hawaii and] officer of the department of education[, as applicable, determine] determines appropriate, to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules.  The Hawaii tourism authority shall preaudit all proposed payments to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules as may be in effect.  The [University of Hawaii, the] Hawaii tourism authority[,] and the department of education shall make disbursements for operating expenses from the amounts released by the comptroller and maintain records and documents necessary to support those disbursements at times mutually agreed upon by [the university president,] the executive director of the Hawaii tourism authority[,] or the superintendent of education, as applicable, and the comptroller; provided that when requested by [the university,] the Hawaii tourism authority[,] or department of education, the comptroller shall make all disbursements for [the university,] the Hawaii tourism authority[,] or department of education, as applicable, subject to available allotment.  Funds released pursuant to this section shall be deposited by [the university,] the Hawaii tourism authority[,] or department of education, as applicable, in accordance with the provisions applicable to the director of finance by chapter 38.  Except for moneys deposited by the Hawaii tourism authority in the convention center enterprise special fund pursuant to section 201B-8, and in the tourism special fund pursuant to section 201B-11, any interest earned on the deposit of funds released pursuant to this section shall be deposited in the state treasury at the end of each fiscal year."

     SECTION 12.  Section 40-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The accounting system installed by the commission on public accountancy under Act 181, Session Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for use in the offices of the comptroller, director of finance, departmental and agency services of the State, and the auditors, treasurers, departmental and agency services of the several counties shall be the accounting and reporting systems of the State and counties; provided that [the University of Hawaii, until June 30, 2016, may install a different accounting system that shall be in conformity with generally accepted accounting principles as applied to colleges and universities; and provided further that] the department of education, until June 30, 2011, may install a different accounting system that shall be in conformity to generally accepted accounting principles.  The comptroller shall make such changes and modifications in the accounting system as shall from time to time appear to be in the best interest of the State and counties."

     SECTION 13.  Section 40-4, Hawaii Revised Statutes, is amended to read as follows:

     "§40-4  Publication of statements.  The comptroller shall prepare and submit to the governor, immediately following the close of each fiscal year, a statement of income and expenditure by funds, showing the principal sources of revenue, the function or purpose for which expenditures were made, together with a consolidated statement showing similar information for all funds; also a statement showing the balance in each fund at the beginning of the fiscal year, plus the receipts, minus the disbursements, and the balance on hand at the close of the fiscal year after deducting outstanding warrants and vouchers.  The comptroller may request all agencies, the judiciary, [the University of Hawaii until June 30, 2016,] the Hawaii tourism authority, the department of education until June 30, 2011, and the legislature to provide such information as may be required for the preparation of statements."

     SECTION 14.  Section 40-6, Hawaii Revised Statutes, is amended to read as follows:

     "§40-6  Approval of business and accounting forms.  The comptroller shall determine the forms required to adequately supply accounting and statistical data for the state government.  The comptroller shall require heads of departments and establishments of the state government to submit proposed new forms or proposed changes in current business and accounting forms for review and approval before ordering the same printed; except that [the University of Hawaii until June 30, 2016,] the Hawaii tourism authority, and the department of education until June 30, 2011, shall be subject to this requirement only with respect to uniform business and accounting forms of statewide use in the State's accounting system.  All standard state forms shall be classified, numbered, and standardized in design, dimensions, color, and grade of paper and recorded in a catalogue of accounting and statistical forms by the comptroller."

     SECTION 15.  Section 40-56, Hawaii Revised Statutes, is amended to read as follows:

     "§40-56  Warrants for supplies, incidentals.  Warrants for bills of materials, supplies, and incidentals of every kind and character, shall be made payable to the order of each individual person to whom the State is indebted, except as provided in section 40-58, and only after an original warrant voucher shall have been presented to the comptroller or, in the case of [the University of Hawaii and] the department of education, to [their respective] the chief financial [officers] officer accompanied by all original bills and any other supporting document as may be required by the comptroller or the [respective] chief financial [officers of the University of Hawaii and] officer of the department of education.  The comptroller or the [respective] chief financial [officers of the University of Hawaii and] officer of the department of education may accept an electronically-mailed warrant voucher or other bill or supporting document as an original warrant voucher, bill, or supporting document.  The original warrant voucher shall have indorsed thereon the approval of the officer in whose department the liability or expense has been incurred, and the appropriation to which it is chargeable; and further, each original bill shall be specially certified by the subordinate officer of the State directly incurring the liability or expense that all the materials, supplies, and incidentals have been received in good order and condition, unless the bill is for an advance payment or a deposit to be paid as specified in the department's purchase order, in which case the certification of the original bill by the subordinate officer is not required.  Any advance payment made under this section must conform to the common business practice for making such payment as determined by the comptroller or the [respective] chief financial [officers of the University of Hawaii and] officer of the department of education."

     SECTION 16.  Section 40-58, Hawaii Revised Statutes, is amended to read as follows:

     "§40-58  In favor of assignees.  No assignment of moneys by a person to whom the State is directly indebted shall be effective unless the assignment is first approved by the comptroller or, in the case of [the University of Hawaii until June 30, 2016, and] the department of education until June 30, 2011, by [their respective] the chief financial [officers.] officer.  The comptroller or the chief financial [officers of the University of Hawaii and] officer of the department of education may prescribe the form for an assignment, and may approve the assignment within a reasonable time period if, in their respective discretion, the rights or obligations of the State[, the University of Hawaii,] or the department of education under any contract or other undertaking or under any law, rule, or order by a competent authority will not be prejudiced thereby.  Upon approval of the assignment, the comptroller or the [respective] chief financial [officers of the University of Hawaii and] officer of the department of education shall draw a warrant payable to the assignee.  Except as to contracts encumbered by the comptroller[, the University of Hawaii,] or the department of education, each expending agency, upon notification of the comptroller's approval of an assignment, shall prepare a claim for payment in accordance with the terms of the assignment."

     SECTION 17.  Section 40-81, Hawaii Revised Statutes, is amended to read as follows:

     "§40-81  Report by agencies receiving special moneys.  All state officers, departments, boards, bureaus, commissions, or agencies collecting or receiving any moneys not required by law to be deposited in the state treasury shall report to the comptroller all receipts and disbursements on account thereof for each quarterly period of the calendar year not later than the fifteenth day following the end of each quarterly period on such forms and under such rules as may be prescribed by the comptroller; provided that with respect to all moneys held outside the state treasury by [the University of Hawaii until June 30, 2016, or] the department of education until June 30, 2011, pursuant to the authority granted to [the university and] the department of education by this chapter, [the University of Hawaii and] the department of education shall report to the comptroller all transactions for each quarterly period not later than the fifteenth day following the end of each quarterly period on such forms and under such rules as may be prescribed by the comptroller."

     SECTION 18.  Section 40-82, Hawaii Revised Statutes, is amended to read as follows:

     "§40-82  Uncollectible accounts.  (a)  The directors, boards, or executive heads of executive departments, from time to time, may prepare and submit for the review of the attorney general a list of all uncollectible accounts in their departments.  Such accounts as the attorney general finds to be uncollectible shall be entered in a special record and be deleted from the accounts receivable records of the departments, which shall thereupon be relieved from any further accountability for their collection; provided that no account shall be so deleted until it shall have been delinquent for at least two consecutive years.  Any account entered in the special record shall be transferred back to the current accounts receivable if the attorney general finds that the facts as alleged and presented to the attorney general were not true, or that the account has become collectible.

     As used in this section, "uncollectible account" means an account with regard to which:

     (1)  The debtor or party causing damage to property belonging to the State is no longer within the jurisdiction of the State;

     (2)  The debtor or party causing damage to property belonging to the State cannot be located;

     (3)  The party causing damage to property belonging to the State is unknown or cannot be identified;

     (4)  The debtor has filed for bankruptcy and has listed the State as a creditor; or

     (5)  Any other account as may be deemed by the attorney general to be uneconomical or impractical to collect.

     (b)  The judiciary, from time to time, may prepare lists of all delinquent receivables that in its judgment are uncollectible.  The delinquent receivables that the judiciary finds to be uncollectible shall be entered in a special record and be deleted from the other books kept by the judiciary, and the judiciary shall thereupon be released from any further accountability for their collection; provided that no account shall be so deleted until it has been delinquent for at least two years.  Any delinquent receivables so written off may be transferred back to the judiciary's accounts receivable if the judiciary finds that the facts as alleged and previously presented to it were not true, or that the delinquent receivables are in fact collectible, or that the delinquent receivables have become collectible.  Nothing in this subsection shall preclude a person to whom restitution is owed from pursuing collection of the debt.

     As used in this section, "delinquent receivables" means fines, restitution, monetary assessments, fees, surcharges, penalties, sanctions, court costs, and other payment that is past due.

     [(c)  The University of Hawaii, from time to time, may prepare for the review of the university general counsel a list of all uncollectible accounts.  Such accounts as the university general counsel finds to be uncollectible shall be entered into a special record and be deleted from the accounts receivable records of the university, which shall thereupon be relieved from any further accountability for their collection; provided that no account shall be so deleted until it shall have been delinquent for at least two consecutive years.  Any account entered in the special record shall be transferred back to the current accounts receivable if the university general counsel finds that the account has become collectible.

     (d)  The university shall submit an annual report to the legislature, no later than twenty days prior to the convening of each regular session, that shall summarize the types and amounts of uncollectible delinquent accounts that either were:

     (1)  Entered in a special record and deleted from the university's other books; or

     (2)  Transferred back to the university's accounts receivable.]"

     SECTION 19.  Section 40-84, Hawaii Revised Statutes, is amended to read as follows:

     "§40-84  Petty cash funds; regulations.  Whenever the head of any state department, board, bureau, commission, or other agency deems it necessary to have a petty cash fund for the proper transaction of the business of the agency, a written application therefor shall be made to the comptroller setting forth the details covering the purposes and uses of and for the fund.  The comptroller, before issuing a state warrant for that purpose, shall determine whether or not the business of the agency warrants the establishment of such a fund, and if the comptroller is satisfied that such a fund is necessary, the comptroller shall issue a state warrant to such agency for an amount as the comptroller shall determine, not to exceed the sum of $100,000, except that this limitation of $100,000 shall not apply to [the University of Hawaii and] the stadium authority.

     The comptroller may prescribe such rules as the comptroller may deem necessary for the proper administration and accountability of these funds."

     SECTION 20.  Section 40-86, Hawaii Revised Statutes, is repealed.

     ["[§40-86]  Lapse of University of Hawaii appropriations.  Upon the lapse of an appropriation to the University of Hawaii, moneys which remain unencumbered shall be returned to the state treasury within ninety days."]

     SECTION 21.  Section 41D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Any provision in this section to the contrary notwithstanding, [the University of Hawaii (as to casualty insurance risks only), the Research Corporation of the University of Hawaii (as to casualty insurance risks only),] the public health facilities of the department of health (with respect to medical malpractice risks only)[,] and the Hawaii health systems corporation and its regional system boards shall be exempt from the requirements of this chapter."

     SECTION 22.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 23.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

UH; Fiscal Autonomy

 

Description:

Repeals the fiscal autonomy of the UH.

 

 

 

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