TWENTY-NINTH LEGISLATURE, 2017
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. The legislature finds that the tuition schedule established by the board of regents of the University of Hawaii has created an unreasonable increase in the cost of attendance. For example, tuition fees for resident full-time undergraduate students at the University of Hawaii Manoa has been steadily increasing since academic year 2011-2012, by approximately 3.1 per cent in 2012-2013, 5.5 per cent in 2013-2014, 7.6 per cent in 2014-2015, 5.1 per cent in 2015-2016, 5.1 per cent in 2016-2017, and tuition fees are scheduled to increase by another 1.9 per cent in 2018-2019.
The legislature recognizes that universities need funds to operate, and that the University of Hawaii is trying to address a substantial deferred repair and maintenance backlog. However, the legislature finds that tuition costs at the university have consistently and significantly been on the rise, even in recent years, such as 2008-2010, during which time the university received greater amounts of general fund appropriations from the legislature.
In addition, the legislature is concerned about the University of Hawaii's significant increase in spending in recent years for personnel expenses, and the lack of demonstrated efforts to restructure and use financial resources efficiently. The legislature finds that there is redundancy in positions and job responsibilities between the University system and individual university campuses, and that the increase of positions in recent years is not justified by the outcomes produced by the University.
The legislature finds that the cost of tuition and fiscal administration at the University of Hawaii is a matter of statewide concern and that it is in the best interests of the State to ensure that all students have affordable access to higher education and that state funds are used efficiently by the University of Hawaii system.
Therefore, the purpose of this Act is to:
(1) Require that two members of the University of Hawaii board of regents be faculty members;
(2) Prohibit the board of regents of the University of Hawaii from increasing tuition fees until an unspecified date;
(3) Place a cap on the University of Hawaii system's general fund appropriation for operating expenses to support program ID UOH900 for the next five fiscal years;
(4) Require that all University of Hawaii employees who hold administrative positions and earn more than $150,000 annually be employed under an employment contract with the University by July 1, 2018; and
(5) Require the university to provide the legislature with an analysis of whether current tuition increases are helping address the university's repair and maintenance backlog.
SECTION 2. Section 26-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The University of Hawaii shall be headed by an executive board to be known as the board of regents.
The board shall consist of fifteen members. At least one member shall be a University of Hawaii student at the time of the initial appointment. This member may be reappointed for one additional term even though the member may no longer be a student at the time of reappointment. One member shall be a faculty member of a University of Hawaii community college and one member shall be a faculty member at the University of Hawaii at Manoa, University of Hawaii at Hilo, or University of Hawaii West Oahu; provided that the two faculty members shall not be faculty members at campuses in the same county; provided further that the faculty members shall be exempt from any conflict of interest based solely on their positions as faculty within the University of Hawaii system. The governor shall reduce the terms of those initially appointed to each seat on the board of regents to provide, as far as practicable, for the expiration of three terms each year; provided that the term of the student member shall not be reduced.
At least twelve members, except for the student
member,] and faculty members, shall represent and reside in the
specified geographic areas as follows:
(1) Two members from the county of Hawaii;
(2) Two members from the county of Maui;
(3) One member from the county of Kauai; and
(4) Seven members from the city and county of Honolulu.
The board shall have the power, in accordance with the Hawaii constitution and with law, to formulate policy and to exercise control over the university through its executive officer, the president of the university. The board shall have exclusive jurisdiction over the internal organization and management of the university. The board may establish board policies necessary to address any potential conflict of interest issues for the two faculty members of the board."
SECTION 3. Section 304A-401, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The board of regents may charge resident
and nonresident tuition fees for regular courses of instruction at any
University of Hawaii campus, including any community college[
provided that the board of regents shall not approve any increase in regular
credit or summer session tuition fees until ."
SECTION 4. The requirements of section 26-11(a), Hawaii Revised Statutes, as amended by section 2 of this Act, shall apply as follows:
(1) Upon the expiration of the term of the at-large member of the University of Hawaii board of regents whose term expires on June 30, 2017, that vacancy shall be filled by a faculty member of one of the University of Hawaii community colleges; and
(2) Upon the expiration of the term of the at-large member of the University of Hawaii board of regents whose terms expires on June 30, 2018, that vacancy shall be filled by a member of the faculty of either the University of Hawaii at Manoa, University of Hawaii at Hilo, or University of Hawaii West Oahu;
provided that all other requirements of section 26-11(a), Hawaii Revised Statutes, as amended by section 2 of this Act, are met.
SECTION 5. Beginning with fiscal year 2017-2018 and for each fiscal year thereafter up to and including the 2021-2022 fiscal year, the amount of general funds appropriated to the University of Hawaii systemwide support for program ID UOH900, operating expenses, shall not be more than $41,957,000. The University shall not transfer money from any other funding source to supplement or circumvent this funding limitation for program ID UOH900.
SECTION 6. By July 1, 2018, all employees of the University of Hawaii system shall be employed under an employment contract with the university if the employee:
(1) Holds an administrative position within the University of Hawaii system or an administrative position at any of the University of Hawaii campuses; and
(2) Receives an annual salary of over $150,000.
SECTION 7. The University of Hawaii shall submit a report to the legislature no later than twenty days before the convening of the regular session of 2018 regarding the status of the university's repair and maintenance costs and whether the tuition increases effective through the 2019-2020 academic year are assisting in addressing the repair and maintenance backlog.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
University of Hawaii; Board of Regents; Faculty Members; Tuition; Limits; Budget; Full-time Employee Costs; Employment Contracts; Repair and Maintenance Costs
Requires that two members of the University of Hawaii board of regents be faculty members. Prohibits the University of Hawaii board of regents from increasing tuition fees until an unspecified date. Establishes a cap on the University of Hawaii's general fund appropriation for operating expenses for the next five fiscal years. Requires the university to report to the legislature regarding tuition increases and the university's repair and maintenance costs. (SD1)
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