Bill Text: HI SB1225 | 2021 | Regular Session | Amended
Bill Title: Relating To The University Of Hawaii Board Of Regents Independent Audit Committee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2021-07-02 - Act 172, on 07/01/2021 (Gov. Msg. No. 1274). [SB1225 Detail]
Download: Hawaii-2021-SB1225-Amended.html
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THE SENATE |
S.B. NO. |
1225 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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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:
"(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 (d) to read:
"(d) The independent audit committee shall be
exempt from chapter 91 and part I of chapter 92 to the extent that the
independent audit committee is engaging in discussions with internal or
external auditors on matters that should remain confidential in accordance with
nationally recognized best practices for independent audit committees, or
proceedings arising from an investigation by the independent audit committee
relating to potentially actionable civil or criminal conduct, whether or not
the investigation is pending or outstanding. At the discretion of the chair of the
independent audit committee, discussions under this subsection may be held in
the absence of the president of the University of Hawaii or the chief financial
officer of the university."
3. By
amending subsection (f) to read:
"(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.
Report Title:
University of Hawaii Board of Regents; Independent Audit Committee
Description:
Allows the chairperson of the Independent Audit Committee (IAC) of the University of Hawaii Board of Regents to be selected in a manner consistent with its bylaws. Clarifies that the responsibility of the IAC as to the University's enterprise risk management is to oversee, rather than engage in the pertinent operations. Exempts from chapter 91 and part I of chapter 92, Hawaii Revised Statutes, discussions between the IAC and internal or external auditors on matters that should remain confidential in accordance with nationally recognized best practices for independent audit committees. Allows the IAC chairperson to determine whether IAC discussions that are exempt from chapter 91 and part I of chapter 92, Hawaii Revised Statutes, may be held without the presence of the President or the Chief Financial Officer of the University. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
