SB 2602: UH; Tuition and Fees; University of Hawaii Tuition and Fees Special Fund; General Fund; Lapse

A BILL FOR AN ACT

RELATING TO THE GENERAL FUND.

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

     SECTION 1.  The legislature finds that continuing shifts in federal policy are creating significant and widespread challenges in the State and across the nation.  These federal changes, combined with broader economic trends, are expected to affect the State's fiscal stability in the near future.  Reductions in federal funding and uncertainty regarding future federal grant programs require the State to be prepared to assume the financial responsibility for critical programs that currently rely on federal support.

     The legislature further finds that in periods of economic uncertainty, it is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution, for the State to maintain the ability to fund important programs with moneys that are not immediately needed elsewhere.

     Accordingly, the purpose of this Act is to:

     (1)  Require any tuition and fees to be allocated and expended in accordance with board of regents policy for the university of Hawaii;

     (2)  Require any unencumbered balance in the university of Hawaii tuition and fees special fund that, on June 30, 2029, exceeds the reserve level established by the board of regents policy to lapse to the general fund; and

     (3)  Require annual reports to the legislature detailing expenditures.

     SECTION 2.  Section 304A-2153, Hawaii Revised Statutes, is amended as follows:

1.  By amending subsection (a) to read:

     "(a)  There is established the university of Hawaii tuition and fees special fund into which shall be deposited all revenue collected by the university for regular, summer, and continuing education credit tuition, tuition-related course and fee charges, and any other charges to students, except as provided by law.  Moneys deposited into the fund shall be expended to maintain or improve the university's programs and operations and shall not be:

     (1)  Used as a justification for reducing any budget request or allotment to the university, unless the university requests such a reduction;

     (2)  Transferred, unless otherwise authorized by the legislature; [and]

     (3)  Restricted by the governor or the director of finance without the prior approval of the legislature[.]; and

     (4)  Expended in accordance with board of regents policies governing systemwide operations, shared services, and cross-campus support; provided that the university of Hawaii shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session detailing:

          (A)  Tuition and fee revenues collected by campus; and

          (B)  Expenditures allocated by campus and for systemwide purposes.

     Any rule, policy, or action of any agency or individual in contravention of this subsection shall be void as against public policy."

     2.  By amending subsection (g) to read:

     "(g)  At the end of each fiscal year, the moneys in the university of Hawaii tuition and fees special fund for each campus shall lapse to the credit of program identification number UOH900 (university of Hawaii, system wide support)[.]; provided that, on June 30, 2029, any unencumbered balance in the special fund that exceeds the reserve level established by board of regents policy for the university of Hawaii tuition and fees special fund shall lapse to the general fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

UH; Tuition and Fees; University of Hawaii Tuition and Fees Special Fund; General Fund; Lapse

Description:

Requires that tuition, tuition-related course and fee charges, and other charges to students deposited into the University of Hawaii Tuition and Fees Special Fund be allocated and expended in accordance with Board of Regents policies governing systemwide operations.  On 6/30/2029, requires unencumbered funds in the University of Hawaii Tuition and Fees Special Fund that exceeds the reserve level established by the Board of Regents to lapse to the general fund.  Requires annual reports to the Legislature.  Effective 7/1/3000.  (HD2)

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

A BILL FOR AN ACT

RELATING TO THE GENERAL FUND.

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

     SECTION 1.  The legislature finds that continuing shifts in federal policy are creating significant and widespread challenges in the State and across the nation.  These federal changes, combined with broader economic trends, are expected to affect the State's fiscal stability in the near future.  Reductions in federal funding and uncertainty regarding future federal grant programs require the State to be prepared to assume the financial responsibility for critical programs that currently rely on federal support.

     The legislature further finds that in periods of economic uncertainty, it is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution, for the State to maintain the ability to fund important programs with moneys that are not immediately needed elsewhere.  However, the legislature recognizes that moneys paid by students who are attending a specific campus within the university of Hawaii system should be allocated and expended solely for the benefit of the students of that campus.

     Accordingly, the purpose of this Act is to:

     (1)  Require any tuition and fees be allocated and expended for the benefit of students of the campus where tuition or fee was collected; and

     (2)  Beginning June 30, 2029, lapse any unencumbered balance in the university of Hawaii tuition and fees special fund that are above two months of operating expenses to the general fund.

     SECTION 2.  Section 304A-2153, Hawaii Revised Statutes, is amended by:

1.  Amending subsection (a) to read:

     "(a)  There is established the university of Hawaii tuition and fees special fund into which shall be deposited all revenue collected by the university for regular, summer, and continuing education credit tuition, tuition-related course and fee charges, and any other charges to students, except as provided by law.  Moneys deposited into the fund shall be expended to maintain or improve the university's programs and operations and shall not be:

     (1)  Used as a justification for reducing any budget request or allotment to the university, unless the university requests such a reduction;

     (2)  Transferred, unless otherwise authorized by the legislature; [and]

     (3)  Restricted by the governor or the director of finance without the prior approval of the legislature[.]; and

     (4)  Allocated or expended for the benefit of any program or operation located on a campus other than the campus at which the regular, summer, and continuing education credit tuition, tuition-related course and fee charges, or any other charges to students was paid.

     Any rule, policy, or action of any agency or individual in contravention of this subsection shall be void as against public policy."

     2.  By amending subsection (g) to read:

     "(g)  At the end of each fiscal year, the moneys in the university of Hawaii tuition and fees special fund for each campus shall lapse to the credit of program identification number UOH900 (university of Hawaii, system wide support)[.]; provided that, beginning June 30, 2029, any unencumbered balance in the special fund above two months operating expenses, which shall be calculated as sixteen per cent of the average general operating expenditures over the prior three years, shall lapse to the general fund."

     SECTION 3.  The university of Hawaii shall submit a report of to the legislature on proposed spending of moneys in the university of Hawaii tuition and fees special fund no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

UH; Tuition and Fees; University of Hawaii Tuition and Fees Special Fund; General Fund; Lapse

Description:

Requires that tuition, tuition-related course and fee charges, and other charges to students deposited into the University of Hawaii Tuition and Fees Special Fund be allocated and expended for the benefit of students at the campus at which the tuition, tuition-related course and fee charges, and or other charges to students was paid.  Beginning 6/30/2029, requires unencumbered funds in the University of Hawaii Tuition and Fees Special Fund in excess of two months operating expenses to lapse to the general fund.  Requires a report to the Legislature.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

RELATING TO THE GENERAL FUND.

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

     SECTION 1.  The legislature finds that continuing shifts in federal policy are creating significant and widespread challenges in the State and across the nation.  These federal changes, combined with broader economic trends, are expected to affect the State's fiscal stability in the near future.  Reductions in federal funding and uncertainty regarding future federal grant programs require the State to be prepared to assume the financial responsibility for critical programs that currently rely on federal support.

     The legislature further finds that in periods of economic uncertainty, it is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution, for the State to maintain the ability to fund important programs with moneys that are not immediately needed elsewhere.

     Accordingly, the purpose of this Act is to transfer excess moneys from the university of Hawaii tuition and fees special fund to the general fund.

     SECTION 2.  Section 304A-2153, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  At the end of each fiscal year, the moneys in the university of Hawaii tuition and fees special fund for each campus shall lapse to the credit of [program identification number UOH900 (university of Hawaii, system wide support).] the general fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

UH; Tuition and Fees; General Fund; Lapse

Description:

Requires that excess funds in the University of Hawaii Tuition and Fees Special Fund at the end of the fiscal year shall lapse to the credit of the general fund.  (SD1)

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

A BILL FOR AN ACT

relating to THE general fund.

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

     SECTION 1.  The legislature finds that continuing shifts in federal policy are creating significant and widespread challenges in Hawaii and across the nation.  These federal changes, combined with broader economic trends, are expected to affect Hawaii's fiscal stability in the near future.  Reductions in federal funding and uncertainty regarding future federal grant programs require the State to be prepared to assume the financial responsibility for critical programs that currently rely on federal support.

     The legislature further finds that in periods of economic uncertainty, it is a matter of statewide concern for the State to maintain the ability to fund important programs with moneys that are not immediately needed elsewhere.

     Accordingly, the purpose of this Act is to transfer excess moneys from the university of Hawaii tuition and fees special fund to the general fund.

     SECTION 2.  Section 304A-2153, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  At the end of each fiscal year, the moneys in the university of Hawaii tuition and fees special fund for each campus shall lapse to the credit of [program identification number UOH900 (university of Hawaii, system wide support).] the general fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

UH; Tuition and Fees; General Fund; Lapse

Description:

Requires that excess funds in the University of Hawaii tuition and fees special fund at the end of the fiscal year lapse to the credit of the general fund.

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

STAND. COM. REP. NO. 2766

Honolulu, Hawaii

RE:     S.B. No. 2602

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2602, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to require that excess moneys in the University of Hawaii tuition and fees special fund lapse to the credit of the general fund at the end of each fiscal year.

     Your Committee received written comments in support of this measure from one individual.

     Your Committee received written comments in opposition to this measure from the University of Hawaii and University of Hawaii Professional Assembly.

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that this measure will allow the State to use certain moneys not immediately needed by the University of Hawaii to fund critical programs that were previously funded by federal moneys that are no longer available due to shifting federal priorities.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2602, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2335

Honolulu, Hawaii

RE:     S.B. No. 2602

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 2602 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to require that excess funds in the University of Hawaii Tuition and Fees Special Fund at the end of the fiscal year shall lapse to the credit of the General Fund.

     Your Committee received testimony in opposition to this measure from the University of Hawaii System, University of Hawaii Professional Assembly, and one individual.

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that the State must be prepared to assume financial responsibility for critical programs that rely on federal support.  Federal cuts, combined with broader economic trends, threaten the continuation of critical programs and projects that benefit the public.  In order to bridge funding gaps, it is necessary for the State to identify and utilize idle funds for the public good.  This measure will strengthen the State's fiscal stability and support the continuation of critical programs that rely on federal support.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2602, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2602, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,