HOUSE OF REPRESENTATIVES	H.B. NO.	706
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to non-general funds.

 

 

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

 

PART I

     SECTION 1.  The purpose of this Act is to repeal and reclassify various non-general funds pursuant to the recommendations made by the auditor in auditor's report no. 14-18, entitled review of special funds, revolving funds, trust funds, and trust accounts of the University of Hawaii.

PART II

     SECTION 2.  The purpose of this part is to reclassify the Hawaii educator loan program special fund as a revolving fund.

     The legislature finds that the fund functions as, and meets the criteria for, a revolving fund and should be reclassified as a revolving fund.

     SECTION 3.  Chapter 304A, part V, subpart D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§304A-      Hawaii educator loan program revolving fund.  There is established the Hawaii educator loan program revolving fund, for the purpose of providing loans pursuant to section 304A-701.  The following may be deposited into the revolving fund:  appropriations made by the legislature, private contributions, repayment of loans, including interest and payments received on account of principal, and moneys from other sources; provided that:

     (1)  Moneys on balance in the revolving fund at the close of each fiscal year shall remain in that fund and shall not lapse to the credit of the general fund; and

     (2)  An amount from the revolving fund not exceeding five per cent of the total amount of outstanding loans may be set by the university to be used for administrative expenses incurred in administering the revolving fund."

     SECTION 4.  Section 304A-701, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  In accordance with chapter 103D, the university may enter into written contracts with collection agencies for the purpose of collecting delinquent loans.  All payments collected, exclusive of a collection agency's commissions, shall revert, and be credited, to the Hawaii educator loan program [special] revolving fund[.] established pursuant to section 304A-    .  A collection agency that enters into a written contract with the university for the collection of delinquent loans pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract."

     SECTION 5.  Section 304A-703, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-703[]]  Capacity of minors in qualifying for Hawaii educator loans.  Any student otherwise qualifying for a loan under the Hawaii educator loan program [special] revolving fund established pursuant to section 304A-     shall not be disqualified because the student is under the age of eighteen years, and for the purpose of applying for, receiving, and repaying the loan, any [such] person shall be deemed to have full legal capacity to act and shall have all rights, powers, privileges, and obligations of an adult with respect thereto."

     SECTION 6.  Section 304A-2161, Hawaii Revised Statutes, is repealed.

     ["[§304A-2161]  Hawaii educator loan program special fund.  There is established the Hawaii educator loan program special fund, for the purpose of providing loans pursuant to section [304A-701].  The following may be deposited into the special fund:  appropriations made by the legislature, private contributions, repayment of loans, including interest and payments received on account of principal, and moneys from other sources; provided that:

     (1)  Moneys on balance in the special fund at the close of each fiscal year shall remain in that fund and shall not lapse to the credit of the general fund; and

     (2)  An amount from the special fund not exceeding five per cent of the total amount of outstanding loans may be set by the university to be used for administrative expenses incurred in administering the special fund."]

PART III

     SECTION 7.  The purpose of this part is to reclassify the community colleges special fund as a revolving fund.

     The legislature finds that the fund functions as, and meets the criteria for, a revolving fund and should be reclassified as a revolving fund.

     SECTION 8.  Chapter 304A, part V, subpart D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§304A-      Community colleges revolving fund.  (a)  Section 304A-2003 notwithstanding, there is established a community colleges revolving fund to receive, disburse, and account for funds of programs and activities of the community colleges, including off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services that help make available the resources of the community colleges to the communities they serve.

     (b)  The revolving fund may include deposits from:

     (1)  Tuition, fees, and charges for affiliated instructional, training, and public service courses and programs; and

     (2)  Fees, fines, and other money collected for:

         (A)  Student health;

         (B)  Transcript and diploma;

         (C)  Library;

         (D)  Facility use;

         (E)  Child care;

         (F)  Auxiliary enterprises;

         (G)  Alumni; and

         (H)  Other related activities."

     SECTION 9.  Section 304A-2162, Hawaii Revised Statutes, is repealed.

     ["[§304A-2162]  Community colleges special fund.  (a)  Section [304A-2003] notwithstanding, there is established a community colleges special fund to receive, disburse, and account for funds of programs and activities of the community colleges, including but not limited to off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services that help make available the resources of the community colleges to the communities they serve.

     (b)  The special fund may include deposits from:

     (1)  The University of Hawaii tuition and fees special fund established in section [304A-2153];

     (2)  Tuition, fees, and charges for affiliated instructional, training, and public service courses and programs; and

     (3)  Fees, fines, and other money collected for:

         (A)  Student health;

         (B)  Transcript and diploma;

         (C)  Library;

         (D)  Facility use;

         (E)  Child care;

         (F)  Auxiliary enterprises;

         (G)  Alumni; and

         (H)  Other related activities."]

PART IV

     SECTION 10.  The purpose of this part is to reclassify the professional student exchange program special fund as a revolving fund.

     The legislature finds that a revolving fund classification is more appropriate because the fund was created to account for receipts and disbursements related to financial support provided to participants of the professional student exchange program.

     SECTION 11.  Chapter 304A, part V, subpart D, is amended by adding a new section to be appropriately designated and to read as follows:

     "§304A-      Professional student exchange program revolving fund.  (a)  There is established a professional student exchange program revolving fund to be administered and expended by the Hawaii commission.

     (b)  The following moneys shall be deposited into the revolving fund:

     (1)  Principal and interest payments received as repayment of financial support from former or current participants of the professional student exchange program, pursuant to section 304A‑3209; and

     (2)  Interest earned or accrued on moneys in the revolving fund.

     (c)  Moneys in the revolving fund shall be expended to:

     (1)  Support the professional student exchange program's activities, including the provision of financial support to participants at Western Interstate Commission for Higher Education receiver institutions; and

     (2)  Enforce the collection of delinquent obligations."

     SECTION 12.  Section 304A-2179, Hawaii Revised Statutes, is repealed.

     ["[§304A-2179]  Professional student exchange program special fund.  (a)  There is established a professional student exchange program special fund to be administered and expended by the Hawaii commission.

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

     (1)  Principal and interest payments received as repayment of financial support from former or current participants of the professional student exchange program, pursuant to section 304A‑3209; and

     (2)  Interest earned or accrued on moneys in the special fund.

     (c)  Moneys in the special fund shall be expended to:

     (1)  Support the professional student exchange program's activities, including the provision of financial support to participants at Western Interstate Commission for Higher Education receiver institutions; and

     (2)  Enforce the collection of delinquent obligations."]

PART V

     SECTION 13.  The purpose of this part is to repeal the Senator Hiram L. Fong scholarship program endowment trust fund.

     The legislature finds that the fund does not serve the purpose for which it was created and should be repealed.

     SECTION 14.  Section 304A-2353, Hawaii Revised Statutes, is repealed.

     ["[§304A-2353]  The Senator Hiram L. Fong scholarship program; endowment trust.  (a)  There is established the Senator Hiram L. Fong scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

     (b)  Awards shall be granted annually to one female student and one male student who:

     (1)  Are graduates of a public high school in the State;

     (2)  Are upperclassmen at the university;

     (3)  Submit winning essays to the board of regents on the senator's contributions to Hawaii;

     (4)  Have a demonstrated commitment to local community issues, as shown by volunteer work and participation in community organizations; and

     (5)  Have a demonstrated interest and knowledge of the history of immigration to Hawaii.

     (c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

     (1)  Pay for the costs of tuition and fees for a single academic year;

     (2)  Pay for the costs of textbooks and other instructional materials for a single academic year;

     (3)  Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

     (4)  Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

     (d)  The board of regents shall adopt rules to implement the Senator Hiram L. Fong scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

     (e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Hiram L. Fong scholarship program."]

PART VI

     SECTION 15.  The purpose of this part is to repeal the Senator Oren E. Long scholarship program endowment trust.

     The legislature finds that the fund does not serve the purpose for which it was created and should be repealed.

     SECTION 16.  Section 304A-2354, Hawaii Revised Statutes, is repealed.

     ["[§304A-2354]  The Senator Oren E. Long scholarship program; endowment trust.  (a)  There is established the Senator Oren E. Long scholarship program to be administered by the university with proceeds from an endowment trust that shall receive its initial funding by an appropriation out of the general revenues of the State.  The program shall provide financial support to students enrolled at any campus of the university.

     (b)  Awards shall be granted annually to one female student and one male student who:

     (1)  Are graduates of a public high school in the State;

     (2)  Are upperclassmen at the university; and

     (3)  Submit winning essays to the board of regents on the senator's contributions to Hawaii.

     (c)  The amount to be awarded to a student shall be determined by the board of regents with due regard to the total amount of funds available for the program.  The award that a student receives under this program may be used to:

     (1)  Pay for the costs of tuition and fees for a single academic year;

     (2)  Pay for the costs of textbooks and other instructional materials for a single academic year;

     (3)  Pay for the costs of room and board at a dormitory or apartment maintained by the university for a single academic year; or

     (4)  Defray the difference between student need, as determined by the Free Application for Federal Student Aid, and the total cost of attendance for a single academic year.

     (d)  The board of regents shall adopt rules to implement the Senator Oren E. Long scholarship program.  The rules shall be adopted pursuant to chapter 91 but shall be exempt from the public notice and public hearing requirements.

     (e)  The scholarship program shall be funded with proceeds from an endowment trust established with initial funding by an appropriation out of the general revenues of the State and shall be administered by the board of regents for the purposes of supporting the Senator Oren E. Long scholarship program."]

PART VII

     SECTION 17.  The hurricane Iniki insurance proceeds special fund administratively established in 1993 and administered by the University of Hawaii is abolished.

PART VIII

     SECTION 18.  On July 1, 2015, all unencumbered balances remaining in the accounts and funds repealed or abolished by this Act shall lapse to the credit of the general fund; provided that on July 1, 2015, the director of finance shall transfer the unencumbered balances in the:

     (1)  Hawaii educator loan program special fund repealed pursuant to section 6 of this Act to the Hawaii educator loan program revolving fund established pursuant to section 3 of this Act;

     (2)  Community colleges special fund repealed pursuant to section 9 of this Act to the community colleges revolving fund established pursuant to section 8 of this Act; and

     (3)  Professional student exchange program special fund repealed pursuant to section 12 of this Act to the professional student exchange program revolving fund established pursuant to section 11 of this Act.

PART IX

     SECTION 19.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 20.  This Act shall take effect on July 1, 2015.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Non-General Funds; Repeal; Transfer of Balances

 

Description:

Repeals various non-general funds and accounts, transfers unencumbered balances to the general fund, and reclassifies selected special funds to revolving funds, as recommended by the auditor in report no. 14-18.

 

 

 

 

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