Higher Ed

Allows UH to carry over funds from one year to the next. (HB2062

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The state constitution established the
 2 University of Hawaii as a "body corporate."  Recognizing this
 3 special status, the legislature has provided the university with
 4 more flexibility in managing its resources than typical state
 5 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)
15 The 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 instructional program and shall
 4 not be subject to restriction or be the basis for restriction of
 5 other appropriations to the university.
 6      (c)  The university shall submit a report for each fiscal
 7 year identifying the amount of funds to be carried over for each
 8 appropriation to:
 9      (1)  The director of finance, no later than thirty days
10           after the close of the fiscal year for which the report
11           is being made; and
12      (2)  The legislature, no later than twenty days prior to the
13           convening of the following regular session of the
14           legislature."
15      SECTION 3.  Section 37-32, Hawaii Revised Statutes, is
16 amended to read as follows:
17      "37-32  Quarterly allotment periods.  Except as provided in
18 [section] sections 37-41.5[,] and 37-  , no officer, department,
19 or establishment shall expend or be allowed to expend during any
20 fiscal year any sum for any purpose not specifically authorized
21 by the legislature for expenditure during that particular fiscal
22 year, and not made available pursuant to the allotment system
23 provided for in sections 37-31 to 37-41.  For the purposes of the

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                                     H.B. NO.           H.D. 2

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

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                                     H.B. NO.           H.D. 2

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

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                                     H.B. NO.           H.D. 2

 1      SECTION 7.  This Act shall take effect on July 1, 2000, and
 2 shall be repealed on June 30, 2002; 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, 2000.