Bill Text: HI SB2576 | 2020 | Regular Session | Amended


Bill Title: Relating To Reimbursements For State Contributions.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Engrossed - Dead) 2020-03-13 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on LHE with none voting aye with reservations; none voting no (0) and Representative(s) Gates, McDermott, Thielen excused (3). [SB2576 Detail]

Download: Hawaii-2020-SB2576-Amended.html

THE SENATE

S.B. NO.

2576

THIRTIETH LEGISLATURE, 2020

S.D. 2

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO REIMBURSEMENTS FOR STATE CONTRIBUTIONS.

 

 

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

 


     SECTION 1.  After the creation of the tuition and fees special fund by Act 161, Session Laws of Hawaii 1995, many University of Hawaii positions that were previously funded by the general fund instead became funded by the tuition and fees special fund.  Section 87A-39, Hawaii Revised Statutes, requires the University of Hawaii to reimburse the State for contributions made by the State pursuant to sections 87A‑32, 87A‑33, 87A‑34, 87A-35, 87A-36, and 87A-37, Hawaii Revised Statutes, on account of University of Hawaii employees whose compensation is paid in whole or in part from funds other than the general fund.

     In addition, section 88-125, Hawaii Revised Statutes, requires the University of Hawaii to reimburse the State for the respective amounts payable by the State to cover the liability of the State to the various funds of the employeesꞌ retirement system of the State.  The department of budget and finance and the University of Hawaii have subsequently agreed that reimbursements pursuant to sections 87A‑39 and 88‑125, Hawaii Revised Statutes, will be paid by the general fund to avoid an unintended consequence that would have forced the University of Hawaii to pay for fringe benefits costs that it previously did not have to pay.

     The legislature finds that, without this cost-sharing agreement, the University of Hawaii would have been forced to consider alternatives, such as increased tuition rates or staff reductions, which would have resulted in a reduction in services.  The legislature further finds that, without this cost-sharing agreement, the legislature would also have had to continue providing general funds for University of Hawaii positions or implement reduction in force measures for positions that it no longer appropriated general funds for.

     The legislature further finds that this cost-sharing agreement will be beneficial to both the University of Hawaii and State.

     The purpose of this Act is to provide the University of Hawaii with certain exemptions from sections 87A‑39 and 88‑125, Hawaii Revised Statutes, and to codify in statute, the cost‑sharing agreement between the University of Hawaii and department of budget and finance.

     SECTION 2.  Section 87A-39, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All state agencies having control of funds other than the general fund shall reimburse the State for contributions made by the State pursuant to sections 87A-32, 87A-33, 87A-34, 87A-35, 87A-36, and 87A-37 on account of agency employees whose compensation is paid in whole or part from funds other than the general fund.  Certain positions of the University of Hawaii that are authorized by the legislature for which salary costs are paid in whole or in part by the University of Hawaii tuition and fees special fund established in section 304A-2153 may be exempted from this subsection pursuant to an executive order; provided that if positions are exempted from reimbursement under this subsection, the university shall submit a report to the legislature annually in conformance with the reporting requirements of the executive order."

     SECTION 3.  Section 88-125, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each of the departments and agencies hereinafter described, the office of Hawaiian affairs, and the Hawaii health systems corporation shall reimburse the State for the respective amounts payable by the State to cover the liability of the State to the various funds of the system on account of the employees in the departments and agencies, the trustees of the office of Hawaiian affairs, and the employees of the Hawaii health systems corporation.  This provision shall apply to any department or agency of the State that is authorized by law to fix, regulate, and collect rents, rates, fees, or charges of any nature.  This subsection shall not apply as to rental units receiving federal subsidies until approval has been obtained from the appropriate federal agency.  Certain positions of the University of Hawaii that are authorized by the legislature for which salary costs are paid in whole or in part by the University of Hawaii tuition and fees special fund established in section 304A-2153 may be exempted from this subsection pursuant to an executive order; provided that if positions are exempted from reimbursement under this subsection, the university shall submit a report to the legislature annually in conformance with the reporting requirements of the executive order."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2050.



 

Report Title:

UH; Tuition and Fees Special Fund; Cost-sharing; Reporting

 

Description:

Specifies exemptions for the University of Hawaii from sections 87A-39 and 88-125, Hawaii Revised Statutes, to enhance transparency and accountability regarding fringe benefit reimbursement exemptions under the cost-sharing agreement between the University of Hawaii and Department of Budget and Finance.  Effective 1/1/2050.  (HD1)

 

 

 

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

 

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