SB 2658: UH; BOR; RIM Projects; Expenditures; Reports

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 it is of critical importance to ensure that public funds are used specifically for their intended purposes.  It is essential that funds appropriated to the university of Hawaii for renew, improve, and modernize projects, or "RIM projects", not be used for current or anticipated capital improvement projects.  Ensuring that funds are used specifically for their intended purpose will promote the integrity of state infrastructure investments and ensure that the maintenance and modernization of public facilities are appropriately prioritized.

     The legislature further finds that it is its responsibility to monitor and review the use of funds to renew, improve, and modernize existing university facilities.  To maintain transparency and accountability in the allocation and expenditure of these funds, it is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution, to require that the university of Hawaii provide detailed reports on projects that receive renew, improve, and modernize project funding.

     Accordingly, the purpose of this Act is to require that the board of regents expend appropriated funds only for purposes of renew, improve, and modernize projects.

     SECTION 2.  Section 304A-2672, Hawaii Revised Statutes, is amended to read as follows:

     "§304A-2672  Powers of the board.  Notwithstanding any law to the contrary, the board may:

     (1)  Designate as a university project, any taking, improvement, or facility on any one or more of the areas in one or more of the educational institutions under the jurisdiction of the board;

     (2)  Construct and maintain university projects, including a university project included or to be in a university system;

     (3)  Expend funds for renew, improve, and modernize projects on one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board; provided that the board shall not expend these funds on current, ongoing, or anticipated capital improvement projects; provided further that the board shall submit an annual report detailing the renew, improve, and modernize projects that received funding to the legislature no later than thirty days prior to the convening of each regular session;

    [(3)] (4)  Combine two or more university projects into a university system on one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board, and to maintain the system;

    [(4)] (5)  Combine two or more university projects, university systems, or university projects and university systems into a network, on any one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board, and to maintain the network;

    [(5)] (6)  Prescribe and collect rents, fees, and charges for the use of or services furnished by any university project and the facilities thereof, and pledge any appropriation to any university project and the facilities thereof that in aggregate, produces revenue of the university at least sufficient to comply with section 304A-2681;

    [(6)] (7)  With the approval of the governor, issue revenue bonds under this subpart in [such] a principal amount as may be authorized by the legislature from time to time to finance in whole or in part the cost of construction or the cost of maintenance of any university project, including funding reserves therefor;

    [(7)] (8)  Pledge to the punctual payment of revenue bonds and interest thereon, all or any part of the revenue of the university, including any appropriation, in an amount sufficient to pay the revenue bonds and interest as the same become due and to create and maintain reasonable reserves therefor;

    [(8)] (9)  Establish a loan program or a commercial paper program upon terms and conditions that the board may determine; and

    [(9)] (10)  Advance moneys of the university, not otherwise required, and do any and all other lawful acts as may be necessary, convenient, or desirable, for carrying into execution and administering this subpart."

     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; BOR; RIM Projects; Expenditures; Reports

Description:

Requires the Board of Regents to expend funds appropriated to renew, improve, or modernize existing University of Hawaii facilities for only those purposes and not for current, ongoing, or anticipated capital improvement projects.  Requires annual reports to the Legislature.  (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 UNIVERSITY OF HAWAII.

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

     SECTION 1.  The legislature finds that it is of critical importance to ensure that public funds are used specifically for their intended purposes.  It is essential that funds appropriated to the university of Hawaii for renew, improve, and modernize projects not be used for current or anticipated capital improvement projects.  Ensuring that funds are used specifically for their intended purpose will promote the integrity of state infrastructure investments and ensure that the maintenance and modernization of public facilities are appropriately prioritized.

     The legislature further finds that it is its responsibility to monitor and review the use of funds to renew, improve, and modernize existing university facilities.  To maintain transparency and accountability in the allocation and expenditure of these funds, it is necessary to require that the university of Hawaii provide detailed reports on projects that receive renew, improve, and modernize project funding.

     Accordingly, the purpose of this Act is to require that the board of regents expend appropriated funds only for purposes of renew, improve, and modernize projects.

     SECTION 2.  Section 304A-2672, Hawaii Revised Statutes, is amended to read as follows:

     "§304A-2672  Powers of the board.  Notwithstanding any law to the contrary, the board may:

     (1)  Designate as a university project, any `taking, improvement, or facility on any one or more of the areas in one or more of the educational institutions under the jurisdiction of the board;

     (2)  Construct and maintain university projects, including a university project included or to be in a university system;

     (3)  Expend funds for renew, improve, and modernize projects on one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board; provided that the board shall not expend these funds on current, ongoing, or anticipated capital improvement projects; provided further that the board shall submit an annual report detailing the renew, improve, and modernize projects that received funding to the legislature no later than thirty days prior to the convening of each regular session;

    [(3)] (4)  Combine two or more university projects into a university system on one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board, and to maintain the system;

    [(4)] (5)  Combine two or more university projects, university systems, or university projects and university systems into a network, on any one or more of the areas on any one or more of the educational institutions under the jurisdiction of the board, and to maintain the network;

    [(5)] (6)  Prescribe and collect rents, fees, and charges for the use of or services furnished by any university project and the facilities thereof, and pledge any appropriation to any university project and the facilities thereof that in aggregate, produces revenue of the university at least sufficient to comply with section 304A-2681;

    [(6)] (7)  With the approval of the governor, issue revenue bonds under this subpart in such principal amount as may be authorized by the legislature from time to time to finance in whole or in part the cost of construction or the cost of maintenance of any university project, including funding reserves therefor;

    [(7)] (8)  Pledge to the punctual payment of revenue bonds and interest thereon, all or any part of the revenue of the university, including any appropriation, in an amount sufficient to pay the revenue bonds and interest as the same become due and to create and maintain reasonable reserves therefor;

    [(8)] (9)  Establish a loan program or a commercial paper program upon terms and conditions that the board may determine; and

    [(9)] (10)  Advance moneys of the university, not otherwise required, and do any and all other lawful acts as may be necessary, convenient, or desirable, for carrying into execution and administering this subpart."

     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; BOR; RIM Projects; Expenditures; Reports

Description:

Requires the Board of Regents to expend funds appropriated to renew, improve, or modernize existing University of Hawaii facilities for only those purposes and not for current, ongoing, or anticipated capital improvement projects.  Requires annual reports to the Legislature.

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. 2333

Honolulu, Hawaii

RE:     S.B. No. 2658

        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. 2658 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require the Board of Regents to expend funds appropriated to renew, improve, or modernize existing University of Hawaii facilities for only those purposes and not for current, ongoing, or anticipated capital improvement projects; and

     (2)  Require annual reports to the Legislature.

     Your Committee received testimony in opposition to this measure from the University of Hawaiʻi System.

     Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that it is of critical importance that public funds are used specifically for their intended purposes.  Funds appropriated to the University of Hawaii for Renew, Improve, and Modernize projects, or "RIM" projects, should be used specifically for those projects and not for current or anticipated capital improvement projects.  This measure will hold the University of Hawaii accountable for its expenditures and promote the integrity of state infrastructure investments and ensure that the maintenance and modernization of public facilities are appropriately prioritized.

     Your Committee notes the concern raised by the Department of the Attorney General that pursuant to the Hawaii State Constitution, this measure requires language identifying it as a matter of statewide concern.  Therefore, amendments to this measure are necessary to address this issue.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language identifying the issue addressed in this measure as a matter of statewide concern; and

     (2)  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. 2658, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2658, 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,