Higher Ed

Allows UH to carry over funds from one year to the next.  (HB1660

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            C.D. 1

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The State Constitution established the
 2 University of Hawaii (university) as a "body corporate."
 3 Recognizing this special status, the legislature has provided the
 4 university with more flexibility in managing its resources than
 5 typical state agencies.
 6      The purpose of this Act is to extend the flexibility of the
 7 university to manage its resources by enabling the university to
 8 carry over unexpended funds from one fiscal period to the next.
 9 This authority is similar to that currently extended to the
10 department of education.
11      SECTION 2.  Chapter 37, Hawaii Revised Statutes, is amended
12 by adding a new section to be appropriately designated and to
13 read as follows:
14      "37-    University of Hawaii; carryover of funds.  (a)  The
15 University of Hawaii may retain any appropriation of general
16 funds for operating purposes at the close of a fiscal year.  The
17 funds retained shall not lapse until June 30 of the following
18 fiscal year.

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 1      (b)  Any appropriation retained in accordance with this
 2 section may be used by the university to supplement the
 3 appropriation for any university program.
 4      (c)  The university shall submit a report for each fiscal
 5 year identifying the amount of funds to be carried over for each
 6 appropriation to:
 7      (1)  The director of finance no later than thirty days after
 8           the close of the fiscal year for which the report is
 9           being made; and
10      (2)  The legislature no later than twenty days prior to the
11           convening of the following regular session of the
12           legislature."
13      SECTION 3.  Section 37-32, Hawaii Revised Statutes, is
14 amended to read as follows:
15      "37-32  Quarterly allotment periods.  Except as provided in
16 [section] sections 37-41.5[,] and 37-  , no officer, department,
17 or establishment shall expend or be allowed to expend during any
18 fiscal year any sum for any purpose not specifically authorized
19 by the legislature for expenditure during that particular fiscal
20 year, and not made available pursuant to the allotment system
21 provided for in sections 37-31 to 37-41.  For the purposes of the
22 allotment system, each fiscal year shall be divided into four
23 quarterly allotment periods, beginning, respectively, on the

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 1 first days of July, October, January, and April; provided that in
 2 any case where the quarterly allotment period is impracticable,
 3 the director of finance may prescribe a different period suited
 4 to the circumstances, not exceeding six months nor extending
 5 beyond the end of the fiscal year."
 6      SECTION 4.  Section 37-41, Hawaii Revised Statutes, is
 7 amended to read as follows:
 8      "37-41  Appropriations to revert to state treasury;
 9 exceptions.  Unless otherwise provided by [section] sections
10 37-41.5 and 37-   , or any other law, every appropriation or part
11 thereof of any kind made subject to sections 37-31 to 37-40,
12 remaining unexpended and unencumbered at the close of any fiscal
13 year shall lapse and be returned to the general fund in the
14 manner prescribed in section 40-66."
15      SECTION 5.  Section 37-42, Hawaii Revised Statutes, is
16 amended to read as follows:
17      "37-42  Allotment as limit of expenditures; liability for
18 excessive expenditure.  [No] Except for the University of Hawaii,
19 no department or establishment shall expend or be allowed to
20 expend any sum, or incur or be allowed to incur any obligation in
21 excess of an allotment.  No obligation incurred in excess of the
22 balance of an allotment shall be binding against the State, but
23 where the obligation is violative only for having been made in

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 1 excess of an allotment, the director of finance may authorize
 2 payment thereof from unallotted funds.  Any officer, employee, or
 3 member of any department or establishment, who makes or causes to
 4 be made any excessive expenditure or incurs or causes to be
 5 incurred any excessive obligation shall be deemed guilty of
 6 neglect of official duty and shall be subject to removal from
 7 office and shall be liable to the State for such sum as may have
 8 been expended or paid, and such sum, together with interest and
 9 costs, shall be recoverable in an action instituted by the
10 attorney general.
11      Provided that any state department, with the prior consent
12 of the governor and of the director, and subject to terms and
13 conditions insuring protection of the State as shall be imposed
14 by the department, may cosponsor with another state department or
15 with the county or any agency thereof, for the purpose of
16 applying for federal funds or assistance for any project, after
17 certification by the state comptroller that proper and sufficient
18 allotment has been made by the governor to the other department
19 or after receipt of resolution adopted by the county council that
20 proper and sufficient sums for the project have been appropriated
21 and encumbered."
22      SECTION 6.  Statutory material to be repealed is bracketed.
23 New statutory material is underscored.

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 1      SECTION 7.  This Act shall take effect on July 1, 1999 and
 2 shall be repealed on June 30, 2001; provided that sections 37-32,
 3 37-41, and 37-42, Hawaii Revised Statutes, are reenacted in the
 4 form in which they read on June 30, 1999.