Report Title:

University of Hawaii Facilities; Repair and Maintenance

 

Description:

Requires 1 percent of general revenues accrued from July 1, 2008, to June 30, 2014, to be deposited into the newly-created University of Hawaii Repair and Maintenance Special Account for the repair and maintenance of UH facilities. Expresses the Legislature's intent to authorize and appropriate, in each fiscal year of the fiscal period July 1, 2008, to June 30, 2014, at least an additional $50,000,000 in general obligation bonds for the repair and maintenance of UH facilities. Provides that, if the $50,000,000 in bonds is not appropriated in a fiscal year, general excise tax revenues to make up the shortfall shall be automatically transferred to the special account. States that the appropriations of special account moneys and general obligation bond funds shall be in lump sums so that UH has the discretion to identify the repair and maintenance projects that should be funded. Appropriates $50,000,000 from the special account in fiscal year 2008-2009 for the repair and maintenance of UH facilities. Authorizes and appropriates $50,000,000 in general obligation bonds for the repair and maintenance of UH facilities. (HB2521 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2521

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO EDUCATION.

 

 

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

 


SECTION 1. The purpose of this Act is to address the repair and maintenance of facilities of the University of Hawaii. More specifically, this Act:

(1) Creates the University of Hawaii repair and maintenance special account to fund the repair and maintenance of university facilities and requires the deposit of one per cent of general revenues accrued during the next six fiscal years into the special account; and

(2) Expresses the legislature's intent to authorize and appropriate, in each of the next six fiscal years, an additional minimum of $50,000,000 in general obligation bonds for the same purpose and requires general excise tax revenues to be transferred to the University of Hawaii repair and maintenance special account if the minimum $50,000,000 general obligation bond commitment falls short in any fiscal year.

The legislature has expressed only its intent for future authorizations and appropriations of a minimum $50,000,000 in general obligation bonds because the legislature is unable to make the actual appropriation for future fiscal years in this Act. The Hawaii Constitution requires moneys for executive agencies to be appropriated only in the executive budget act, supplemental budget act, or another act passed subsequent to either of the former. Thus, this Act cannot make appropriations for fiscal years beyond fiscal year 2008-2009.

This Act also:

(1) Requires certain appropriations to be made in lump sums to give the University of Hawaii the discretion to identify the repair and maintenance projects to be funded;

(2) Appropriates $50,000,000 from the University of Hawaii repair and maintenance special account for repair and maintenance of university facilities; and

(3) Authorizes the issuance of $50,000,000 in general obligation bonds and appropriates the proceeds for the same purpose.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new subpart to part VI to be appropriately designated and to read as follows:

"    . General Obligation Bonds for Repair and Maintenance

304A-A Legislative intent concerning general obligation bonds for repair and maintenance. (a) The legislature expresses its intent to authorize and appropriate, during each fiscal year of the fiscal period from July 1, 2008, through June 30, 2014, general obligation bonds in the sum of not less than $50,000,000 for the repair and maintenance of University of Hawaii facilities; provided that each appropriation shall be in a lump sum to allow the University of Hawaii full discretion in identifying the repair and maintenance projects to be funded.

(b) If in any fiscal year for which subsection (a) applies, the legislature fails or refuses to fulfill the intent expressed under that subsection, general excise tax revenues in an amount determined in accordance with section 237-31(2) shall be credited to the University of Hawaii repair and maintenance special account during that fiscal year."

SECTION 3. Chapter 36, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"36-A University of Hawaii repair and maintenance special account. (a) There is created in the state general fund under UOH 900 (system wide support) the University of Hawaii repair and maintenance special account.

(b) The following shall be deposited into the special account:

(1) One per cent of the general revenues of the State that accrue during the fiscal period from July 1, 2008, through June 30, 2014;

(2) Interest earned on moneys in the special account; and

(3) General excise tax revenues pursuant to section 237-31(2); provided that this amount shall be in addition to the moneys deposited pursuant to paragraph (1).

The director of finance shall deposit the amount identified under paragraph (1) into the special account on at least a semi-annual basis.

(c) The moneys in the special account shall be appropriated and expended solely for the repair and maintenance of facilities of the University of Hawaii; provided that moneys in the special account shall be appropriated in a lump sum to allow the University of Hawaii full discretion to identify the repair and maintenance projects to be funded.

Expenditures from the special account shall be subject to sections 37-31 and 37-33 to 37-40.

(d) Any unexpended and unencumbered appropriation at the close of the fiscal period for which the appropriation is made shall lapse into the special account and be available for appropriation and expenditure in subsequent fiscal years.

(e) This section shall not be construed to prohibit:

(1) The appropriation and expenditure of other sources of funds, such as general obligation bond funds, for the repair and maintenance of University of Hawaii facilities; or

(2) The appropriation and expenditure of general funds, general obligation bonds, or other sources of funds for the development of new University of Hawaii facilities.

(f) Beginning with the regular session of 2009, the president of the University of Hawaii shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session. The report shall include:

(1) A financial statement of the University of Hawaii repair and maintenance special account;

(2) The repair and maintenance projects undertaken during the immediate past fiscal year; and

(3) The planned repair and maintenance projects for the remaining fiscal years during which the special account is to receive moneys.

(g) No general revenues of the State that accrue after June 30, 2014, shall be deposited into the special account.

No general excise tax revenues shall be deposited into the special account after June 30, 2014.

(h) This section shall be repealed on the day following the date of the last payment of moneys from the special account. The attorney general, upon the advice of the director of finance, shall notify the president of the senate, speaker of the house of representatives, and revisor of statutes of the date of the repeal."

SECTION 4. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"237‑31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $90,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund for public school capital improvement program needs; [and]

(2) If the legislature does not fulfill the intent expressed under section 304A-A for any fiscal year, general excise tax revenues in the amount that represents the difference between $50,000,000 and the principal amount of general obligation bonds authorized and appropriated by the legislature in the subject fiscal year for the repair and maintenance of University of Hawaii facilities, in compliance with the intent of section 304A-A, shall be deposited into the state treasury to the credit of the University of Hawaii repair and maintenance special account. The general excise tax revenues calculated pursuant to this paragraph shall be credited to the University of Hawaii repair and maintenance special account by December 31 of the subject fiscal year without necessity of legislative appropriation; and

[(2)] (3) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund."

SECTION 5. Section 304A-2101, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The general fund budget appropriations for the university shall be an amount not less than three times and not greater than five times the amount of regular tuition and related fee revenues estimated for that fiscal year[.]; provided that appropriations from the University of Hawaii repair and maintenance special account established by section 36-A shall be excluded from calculations to determine compliance with the required minimum and maximum general fund budget appropriations for the university."

SECTION 6. There is appropriated out of the University of Hawaii repair and maintenance special account in the general fund of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the repair and maintenance of University of Hawaii facilities as identified by the University of Hawaii; provided that the appropriation made by this section shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2010, shall lapse back into the University of Hawaii repair and maintenance special account as of that date.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this section.

SECTION 7. The director of finance is authorized to issue general obligation bonds in the sum of $50,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2008-2009 for the repair and maintenance of University of Hawaii facilities as identified by the university; provided that the appropriation made by this section shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2010, shall lapse as of that date.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this section.

SECTION 8. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2008; provided that:

(1) The amendment made to section 237-31, Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is repealed and reenacted on June 30, 2008, by section 4 of Act 304, Session Laws of Hawaii 2006; and

(2) The amendment made to section 237-31, Hawaii Revised Statutes, by section 4 of this Act shall be repealed on June 30, 2014.