REPORT TITLE:
UH


DESCRIPTION:
Creates a separate budget preparation and submission process for
the University of Hawaii.  Recognizes the University of Hawaii as
a state agency apart from the executive branch.  Removes
University of Hawaii employees from the state civil service
system.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2651
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE UNIVERSITY OF HAWAII.



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

 1      SECTION 1.  The legislature finds that a strong university
 
 2 system can be a significant contributor to a robust economy,
 
 3 providing both quality higher education and dollars for the
 
 4 surrounding communities.  The legislature further finds that
 
 5 those universities that contribute to a significant degree to the
 
 6 community's economic well-being have broad authority to respond
 
 7 to changing opportunities.
 
 8      In recent years, the University of Hawaii has been granted
 
 9 increasing fiscal autonomy from the executive branch.  Last year,
 
10 the legislature passed a broad-based measure that gave the
 
11 university increased authority to manage its assets, personnel,
 
12 and programs.  Although the university received increased
 
13 autonomy, the legislature further finds that it is necessary to
 
14 grant the University of Hawaii complete autonomy from the
 
15 executive branch to maximize the university's potential to grow
 
16 as a world-class institution and contribute to the State's
 
17 economic revitalization.
 
18      The purpose of this Act is to provide the University of
 
19 Hawaii with complete autonomy from the executive branch in order
 

 
Page 2                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 to provide the university with opportunities and incentives for
 
 2 developing an entrepreneurial, competitive role and contributing
 
 3 to Hawaii's economic growth.
 
 4      SECTION 2.  Chapter 304, Hawaii Revised Statutes, is amended
 
 5 by adding a new section to be appropriately designated and to
 
 6 read as follows:
 
 7      "§304-    Administration; budget preparation and submission.
 
 8 (a)  The board of regents shall make an annual report to the
 
 9 legislature, at each regular session thereof, of the business of
 
10 the University of Hawaii and of the administration of the
 
11 university system throughout the State.  The board of regents
 
12 shall present to the legislature a unified budget, six-year
 
13 program and financial plan, and variance report for all of the
 
14 colleges, departments, and programs of the University of Hawaii.
 
15 The president of the university, who shall be appointed by the
 
16 board of regents, shall direct the administration of the
 
17 University of Hawaii and be responsible for the efficient
 
18 operation of all of its colleges, departments, and programs.
 
19      (b)  The president of the university shall have the power
 
20 to:
 
21      (1)  Prescribe for all of the colleges, departments, and
 
22           programs, a uniform system of keeping and periodically
 
23           reporting statistics concerning their business;
 

 
Page 3                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      (2)  Obtain from all of the colleges, departments, and
 
 2           programs, estimates for their proposed appropriations;
 
 3           with the cooperation of the representatives of the
 
 4           colleges, departments, and programs concerned, to
 
 5           review and revise the estimates as the president deems
 
 6           necessary for the equitable provision of resources to
 
 7           the various colleges, departments, or programs
 
 8           according to their needs; and to present the estimates,
 
 9           as reviewed and revised by the board of regents, to the
 
10           legislature as collectively constituting a unified
 
11           budget for all of the University of Hawaii;
 
12      (3)  Exercise exclusive authority over the preparation,
 
13           explanation, and administration of the University of
 
14           Hawaii budget, programs, plans, and expenditures,
 
15           including without limitation policies and practices of
 
16           financial administration and the establishment of
 
17           guidelines as to permissible expenditures; provided
 
18           that all expenditures of the University of Hawaii shall
 
19           be in conformance with program appropriations and
 
20           provisions established by the legislature; and
 
21      (4)  Do all other acts that may be necessary or appropriate
 
22           for the administration of the University of Hawaii.
 
23      (c)  The budget, six-year program and financial plan, and
 

 
Page 4                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 the variance report of the University of Hawaii shall be
 
 2 submitted by the board of regents to the legislature in
 
 3 accordance with the schedule of submission specified for the
 
 4 governor in chapter 37 and shall contain the program information
 
 5 prescribed in that chapter.  By November 1 of each year preceding
 
 6 a legislative session in which a budget is to be submitted, the
 
 7 board of regents shall provide written notification to the
 
 8 governor of the proposed total expenditures, by cost categories
 
 9 and sources of funding, and estimated revenues of the University
 
10 of Hawaii for each fiscal year of the next fiscal biennium.
 
11      (d)  If the governor, in anticipation of a revenue
 
12 shortfall, restricts the expenditure of general fund
 
13 appropriations by executive branch departments and agencies by a
 
14 total of      per cent or more of the total general fund
 
15 appropriation to the executive branch in a fiscal year, where at
 
16 the end of the fiscal year those funds will lapse into the
 
17 general fund, the governor shall inform the legislature and the
 
18 board of regents of this action.  After the board of regents is
 
19 informed of the governor's action, then the board of regents
 
20 shall also restrict the expenditure of general fund
 
21 appropriations made to the university system by an equal
 
22 percentage.  If, in the same fiscal year, the governor increases
 
23 the percentage of general fund appropriations restricted and
 

 
Page 5                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 informs the legislature and the board of regents of this increase
 
 2 in restrictions, then the board of regents shall increase its
 
 3 restriction of the expenditure of general fund appropriations by
 
 4 an equal percentage."
 
 5      SECTION 3.  Section 26-4, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§26-4 Structure of government.  Under the supervision of
 
 8 the governor, all executive and administrative offices,
 
 9 departments, and instrumentalities of the state government and
 
10 their respective functions, powers, and duties shall be allocated
 
11 among and within the following principal departments that are
 
12 hereby established:
 
13      (1)  Department of human resources development (Section
 
14           26-5)
 
15      (2)  Department of accounting and general services (Section
 
16           26-6)
 
17      (3)  Department of the attorney general (Section 26-7)
 
18      (4)  Department of budget and finance (Section 26-8)
 
19      (5)  Department of commerce and consumer affairs (Section
 
20           26-9)
 
21      (6)  Department of taxation (Section 26-10)
 
22     [(7)  University of Hawaii  (Section 26-11)
 
23      (8)] (7)  Department of education (Section 26-12)
 

 
Page 6                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1     [(9)] (8)  Department of health (Section 26-13)
 
 2    [(10)] (9)  Department of human services (Section 26-14)
 
 3    [(11)] (10)  Department of land and natural resources (Section
 
 4           26-15)
 
 5    [(12)] (11)  Department of agriculture (Section 26-16)
 
 6    [(13)] (12)  Department of Hawaiian home lands (Section 26-17)
 
 7    [(14)] (13)  Department of business, economic development, and
 
 8           tourism (Section 26-18)
 
 9    [(15)] (14)  Department of transportation (Section 26-19)
 
10    [(16)] (15)  Department of labor and industrial relations
 
11           (Section 26-20)
 
12    [(17)] (16)  Department of defense (Section 26-21)
 
13    [(18)] (17)  Department of public safety (Section 26-14.6)"
 
14      SECTION 4.  Section 26-25, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "[[]§26-25[]]  Services to the judiciary [and],
 
17 legislature[.], and the University of Hawaii.  Any executive
 
18 department may provide services to the judiciary [and], the
 
19 legislature, and the University of Hawaii, but nothing in this
 
20 part and this chapter shall be construed as granting any
 
21 authority to the governor or any department to exercise control
 
22 over the organization, programs, functions, operations, and
 
23 expenditures of the judiciary [and], the legislature[.], and the
 

 
Page 7                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 University of Hawaii."
 
 2      SECTION 5.  Section 26-52, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§26-52  Department heads and executive officers.  The
 
 5 salaries of the following state officers shall be as follows:
 
 6      (1)  The salary of the superintendent of education shall be
 
 7           $90,041 a year;
 
 8     [(2)  The salary of the president of the University of Hawaii
 
 9           shall be set by the board of regents;
 
10      (3)] (2)  The salaries of all department heads or executive
 
11           officers of the departments of accounting and general
 
12           services, agriculture, attorney general, budget and
 
13           finance, business, economic development, and tourism,
 
14           commerce and consumer affairs, Hawaiian home lands,
 
15           health, human resources development, human services,
 
16           labor and industrial relations, land and natural
 
17           resources, public safety, taxation, and transportation
 
18           shall be $85,302 a year; and
 
19     [(4)] (3)  The salary of the adjutant general shall be
 
20           $85,302 a year; provided that if this salary is in
 
21           conflict with the pay and allowance fixed by the tables
 
22           of the regular army or air force of the United States,
 
23           the latter shall prevail."
 

 
Page 8                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      SECTION 6.  Section 37-31, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§37-31  Intent and policy.  It is declared to be the policy
 
 4 and intent of the legislature that the total appropriations made
 
 5 by it, or the total of any budget approved by it, for any
 
 6 department or establishment, shall be deemed to be the maximum
 
 7 amount authorized to meet the requirements of the department or
 
 8 establishment for the period of the appropriation, excepting as
 
 9 may otherwise be provided by law, and that the governor and the
 
10 director of finance should be given the powers granted by
 
11 sections 37-32 to 37-41 in order that savings may be effected by
 
12 careful supervision throughout each appropriation period with due
 
13 regard to changing conditions; and by promoting more economic and
 
14 efficient management of state departments and establishments[.];
 
15 provided that this part shall not apply to the appropriations
 
16 made by the legislature to the University of Hawaii."
 
17      SECTION 7.  Section 37-34, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§37-34  Appropriations available for allotment; estimate of
 
20 expenses.(a)  No appropriation to which the allotment system
 
21 [is applicable] applies shall become available to any department
 
22 or establishment for expenditure during any allotment period
 
23 until the department or establishment submits an estimate to the
 

 
Page 9                                                     
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 director of finance, at whatever time prior to the beginning of
 
 2 the allotment period and in whatever form as the director may
 
 3 prescribe, of the amount required to carry on the work of the
 
 4 department or establishment during that period and until the
 
 5 estimate is approved, increased, or decreased by the director and
 
 6 funds are allotted pursuant to section 37-35.
 
 7      [(b)  Before appropriations for the University of Hawaii
 
 8 become available to the university, the university shall advise
 
 9 the governor and the director of finance of the amount necessary
 
10 for payments for financing agreements under chapter 37D, the
 
11 governor, with the assistance of the director of finance, as may
 
12 be necessary, shall establish allotment ceilings for each source
 
13 of funding of all of the appropriations of the University of
 
14 Hawaii for each allotment period and shall advise the university
 
15 of these determinations.
 
16      (c)] (b)  Any other law to the contrary notwithstanding,
 
17 general fund appropriations for the operating expenses of public
 
18 health facilities shall be made available to the public health
 
19 facilities for expenditure during any allotment period."
 
20      SECTION 8.  Section 37-35, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§37-35  Estimated expenditures; approval.  The director of
 
23 finance shall review all estimates submitted under section 37-34
 

 
Page 10                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 and, having due regard for:
 
 2      (1)  The probable further needs of the department or
 
 3           establishment for the remainder of the term for which
 
 4           the appropriation was made;
 
 5      (2)  The terms and purposes of the appropriation, the
 
 6           progress of collection of revenues, and condition of
 
 7           the treasury; and
 
 8      (3)  The probable receipts and total cash requirements for
 
 9           the ensuing quarter, shall approve, increase, or reduce
 
10           the amount of the estimate[;
 
11 provided that the director of finance shall approve the estimates
 
12 submitted by the University of Hawaii when:
 
13      (1)  The sum of the estimates for each funding source does
 
14           not exceed the applicable allotment ceilings
 
15           established by the governor under section 37-34;
 
16      (2)  The progress of collection of revenues, the condition
 
17           of the treasury, and the probable receipts and total
 
18           cash requirements for the ensuing quarter permit; and
 
19      (3)  All other legal requirements are satisfied].
 
20 The director shall act promptly upon all estimates and notify
 
21 each department or establishment of its allotment, and shall
 
22 notify the comptroller."
 
23      SECTION 9.  Section 37-36, Hawaii Revised Statutes, is
 

 
Page 11                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 amended by amending subsection (a) to read as follows:
 
 2      "§37-36  Modification.(a)  The director of finance may
 
 3 modify or amend any previous allotment upon notice to the
 
 4 department or establishment concerned; provided that:
 
 5     [(1)  For the University of Hawaii, the director of finance
 
 6           may modify or amend any previous allotment only upon
 
 7           application of or notice to the university, and upon
 
 8           public declaration, which shall be made ten days prior
 
 9           to the modification or amendment taking effect;
 
10      (2)] (1)  The modification or amendment shall be made only
 
11           to avoid an illegal result or in anticipation of a
 
12           revenue shortfall;
 
13     [(3)] (2)  No deficit or undue reduction of funds to meet
 
14           future needs of the department or establishment will
 
15           result from the modification or amendment; and
 
16     [(4)] (3)  No modification or amendment shall reduce an
 
17           allotment below the amount required to meet valid
 
18           obligations or commitments previously incurred against
 
19           the allotted funds."
 
20      SECTION 10.  Section 37-37, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§37-37  Reduction.(a)  [Except as provided in subsection
 
23 (b), when] When the director of finance determines at any time
 

 
Page 12                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 that the probable receipts from taxes or any other sources for
 
 2 any appropriation will be less than was anticipated, and that
 
 3 consequently the amount available for the remainder of the term
 
 4 of the appropriation or for any allotment period will be less
 
 5 than the amount estimated or allotted therefor, the director
 
 6 [shall], with the approval of the governor and after notice to
 
 7 the department or establishment concerned, shall reduce the
 
 8 amount allotted or to be allotted; provided that no reduction
 
 9 reduces any allotted amount below the amount required to meet
 
10 valid obligations or commitments previously incurred against the
 
11 allotted funds.
 
12      [(b)  For the University of Hawaii, when the director of
 
13 finance determines at any time that the probable receipts from
 
14 taxes or any other sources for any appropriation will be less
 
15 than was anticipated, and that consequently the amount available
 
16 for the remainder of the term of the appropriation or for any
 
17 allotment period will be less than the amount estimated or
 
18 allotted therefor, the director shall advise the governor of the
 
19 situation, and the governor shall redetermine the allotment
 
20 ceiling for the affected source or sources of funding pursuant to
 
21 section 37-34, and shall advise the university and make a public
 
22 declaration ten days prior to the effective date of the
 
23 redetermination.  The university, not more than twenty days after
 

 
Page 13                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 the governor's notification, shall submit revised estimates
 
 2 consistent with the governor's redetermination to the director of
 
 3 finance.  Otherwise, the director of finance shall modify, amend,
 
 4 or reduce any allotment of the university to comply with the
 
 5 governor's redetermination; provided that no reduction shall
 
 6 reduce any allotted amount below the amount required to meet
 
 7 valid obligations or commitments previously incurred against the
 
 8 allotted funds.
 
 9      (c)] (b)  Prior to the implementation of any reduction in
 
10 allotment proposed by the director of finance or the governor
 
11 pursuant to subsection (a) or (b), in which the sum of the
 
12 reductions exceed 2.5 per cent of the total general fund
 
13 appropriation made by the legislature in any fiscal year, the
 
14 director of finance shall notify the president of the senate, the
 
15 speaker of the house of representatives, and the chairpersons of
 
16 the senate committee on ways and means and the house of
 
17 representatives committee on finance, respectively, of the
 
18 director's intent."
 
19      SECTION 11.  Section 37-62, Hawaii Revised Statutes, is
 
20 amended by amending the definition of "agency" to read as
 
21 follows:
 
22      ""Agency" means any executive department, independent
 
23 commission, board, agency, authority, bureau, office, or other
 

 
Page 14                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 establishment of the state government (except the legislature
 
 2 [and], the judiciary[)], and the University of Hawaii), or any
 
 3 quasi-public institution which is supported in whole or in part
 
 4 by state funds."
 
 5      SECTION 12.  Section 37-74, Hawaii Revised Statutes, is
 
 6 amended by amending subsections (b) to (d) to read as follows:
 
 7      "(b)  The appropriations by the legislature for a biennium
 
 8 shall be allocated between the two fiscal years of the biennium
 
 9 in the manner provided in the budget or appropriations act and as
 
10 further prescribed by the director of finance.  The amounts
 
11 allocated for each fiscal year shall be subject to the allotment
 
12 system prescribed in chapter 37, part II.  Each agency (except
 
13 the courts[),] and the University of Hawaii), in estimating its
 
14 quarterly requirements under chapter 37, part II, shall prepare a
 
15 plan for the fiscal year for the operation of each of the
 
16 programs it is responsible for administering.  The operations
 
17 plan shall be in such form and content as the department of
 
18 budget and finance may prescribe.  It shall be submitted,
 
19 together with the estimated quarterly requirements, to the
 
20 department of budget and finance on such date as the department
 
21 may prescribe.
 
22      (c)  The department of budget and finance shall:
 
23      (1)  Review each operations plan to determine:
 

 
Page 15                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           (A)  That it is consistent with the policy decisions of
 
 2                the governor and appropriations by the
 
 3                legislature;
 
 4           (B)  That it reflects proper planning and efficient
 
 5                management methods; and
 
 6           (C)  That appropriations have been made for the planned
 
 7                purpose and will not be exhausted before the end
 
 8                of the fiscal year;
 
 9           [provided that the department of budget and finance
 
10           shall review the operations plan submitted by the
 
11           University of Hawaii solely for consistency with the
 
12           allotment ceilings established by the governor under
 
13           section 37-34, appropriations by the legislature, the
 
14           requirements of chapter 37D, and the status of revenues
 
15           to support operations plans for all state programs;]
 
16      (2)  Approve the operations plan if satisfied that it meets
 
17           the requirements under paragraph (1).  Otherwise, the
 
18           department of budget and finance shall require revision
 
19           of the operations plan in whole or in part; and
 
20      (3)  Modify or withhold the planned expenditures at any time
 
21           during the appropriation period if the department of
 
22           budget and finance finds that the expenditures are
 
23           greater than those necessary to execute the programs at
 

 
Page 16                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           the level authorized by the governor and the
 
 2           legislature, or that state receipts and surpluses will
 
 3           be insufficient to meet the authorized expenditure
 
 4           levels[; provided that the planned expenditures for the
 
 5           University of Hawaii may be modified or withheld only
 
 6           in accordance with sections 37-36 and 37-37].
 
 7      (d)  No appropriation transfers or changes between programs
 
 8 or agencies shall be made without legislative authorization;
 
 9 provided that:
 
10      (1)  Authorized transfers or changes, when made, shall be
 
11           reported to the legislature; and
 
12      (2)  [Except with respect to appropriations to fund
 
13           financing agreements under chapter 37D, the University
 
14           of Hawaii shall have the flexibility to transfer
 
15           appropriated funds and positions for the operating cost
 
16           category among programs, among cost elements in a
 
17           program, and between quarters, as applicable; and the]
 
18           The Hawaii health systems corporation shall have the
 
19           flexibility to transfer special fund appropriations
 
20           among community hospitals facilities as applicable;
 
21           provided that the Hawaii health systems corporation
 
22           shall maintain the integrity and services of each
 
23           individual facility and shall not transfer
 

 
Page 17                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           appropriations out of any facility that would result in
 
 2           a reduction of services offered by the facility, with
 
 3           due regard for statutory requirements, changing
 
 4           conditions, the needs of the programs, and the
 
 5           effective utilization of resources[; and
 
 6      (3)  The university shall account for each transfer
 
 7           implemented under this subsection in quarterly reports
 
 8           to the governor and annual reports at the end of each
 
 9           fiscal year to the legislature and the governor, which
 
10           shall be prepared in the form and manner prescribed by
 
11           the governor and shall include information on the
 
12           sources and uses of the transfer]."
 
13      SECTION 13.  Section 37-92, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§37-92  Proposed general fund appropriations; executive
 
16 branch; judicial branch[.]; and University of Hawaii.  (a)  The
 
17 governor shall submit a plan of proposed appropriations for the
 
18 State to the legislature which shall accompany the state budget
 
19 in odd-numbered years and the supplemental budget in even-
 
20 numbered years.  The plan of proposed appropriations shall
 
21 include the executive budget, proposed grants to private
 
22 entities, and any specific appropriation measures to be proposed
 
23 by the executive branch, and estimates of the aggregate proposed
 

 
Page 18                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 appropriations of the judicial and legislative branches of
 
 2 government[.], and the University of Hawaii.  In any year in
 
 3 which the plan of proposed appropriations from the general fund
 
 4 exceeds the expenditure ceiling, the governor shall set forth the
 
 5 dollar amount, the rate by which the expenditure ceiling would be
 
 6 exceeded, and the reasons for proposing appropriations in excess
 
 7 of those allowed under the expenditure ceiling.
 
 8      (b)  The proposed appropriations from the general fund for
 
 9 each year of the biennium or each supplementary budget fiscal
 
10 year for the executive and judicial branches and the University
 
11 of Hawaii shall not be increased over the appropriations from the
 
12 general fund for the preceding fiscal year for each branch[,] and
 
13 the University of Hawaii, respectively, by more than the state
 
14 growth, except as provided in this section.  For purposes of this
 
15 subsection, the appropriations from the general fund for the
 
16 executive and judicial branches and the University of Hawaii
 
17 shall not include any appropriations representing amounts
 
18 authorized by the legislature under section 37-93(b).
 
19      (c)  The governor shall submit a plan of proposed
 
20 appropriations for the executive branch to the legislature which
 
21 shall accompany the state budget in odd-numbered years and the
 
22 supplemental budget in even-numbered years.  The plan of proposed
 
23 appropriations shall include the executive budget, proposed
 

 
Page 19                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 grants to private entities, and any specific appropriation
 
 2 measures to be proposed by the executive branch.
 
 3      (d)  The budget documents presented by the governor to the
 
 4 legislature shall include a statement or summary showing (1) the
 
 5 total state personal income for each of the four calendar years
 
 6 immediately preceding the fiscal year for which appropriations
 
 7 from the state general fund are to be made, (2) the
 
 8 appropriations from the general fund for the previous fiscal
 
 9 year, (3) the appropriations from the general fund for the fiscal
 
10 year in progress, and (4) the general fund expenditure ceiling
 
11 for the fiscal year in progress and for the ensuing fiscal year
 
12 or, when necessary, for each fiscal year of the ensuing biennium.
 
13      (e)  The governor shall also include a statement or summary
 
14 showing (1) recommended appropriations from the general fund for
 
15 the executive branch for the ensuing fiscal year or fiscal
 
16 biennium, (2) actual appropriations from the general fund for the
 
17 executive branch plus any recommended appropriations from the
 
18 general fund for the executive branch for the fiscal year in
 
19 progress, (3) the appropriations from the general fund for the
 
20 executive branch for the previous fiscal year, and (4) the
 
21 general fund appropriation ceiling for the executive branch as
 
22 established by subsection (b) for the fiscal year in progress and
 
23 for the ensuing fiscal year or, when necessary, for each fiscal
 

 
Page 20                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 year of the ensuing biennium.
 
 2      (f)  The chief justice shall submit a plan of proposed
 
 3 appropriations of the judicial branch to the legislature which
 
 4 shall accompany the judiciary biennial budget in odd-numbered
 
 5 years and the supplemental budget in even-numbered years.  The
 
 6 plan of proposed appropriations shall include the judiciary
 
 7 budget, proposed grants to private entities, and any specific
 
 8 appropriation measures to be proposed by the judicial branch.
 
 9      (g)  The budget documents presented by the chief justice to
 
10 the legislature shall include a statement or summary showing (1)
 
11 recommended appropriations from the general fund for the judicial
 
12 branch for the ensuing fiscal year or fiscal biennium, (2) actual
 
13 appropriations from the general fund for the judicial branch plus
 
14 any recommended appropriations from the general fund for the
 
15 judicial branch for the fiscal year in progress, (3) the
 
16 appropriations from the general fund for the judicial branch for
 
17 the previous fiscal year, and (4) the general fund appropriation
 
18 ceiling for the judicial branch as established by subsection (b)
 
19 for the fiscal year in progress and for the ensuing fiscal year
 
20 or, when necessary, for each fiscal year of the ensuing biennium.
 
21      (h)  The board of regents of the University of Hawaii shall
 
22 submit a plan of proposed appropriations of the University of
 
23 Hawaii to the legislature which shall accompany the University of
 

 
Page 21                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 Hawaii biennial budget in odd-numbered years and the supplemental
 
 2 budget in even-numbered years.  The plan of proposed
 
 3 appropriations shall include the University of Hawaii budget,
 
 4 proposed grants to private entities, and any specific
 
 5 appropriation measures to be proposed by the board of regents of
 
 6 the University of Hawaii.
 
 7      (i)  The budget documents presented by the board of regents
 
 8 of the University of Hawaii to the legislature shall include a
 
 9 statement or summary showing (1) recommended appropriations from
 
10 the general fund for the University of Hawaii for the ensuing
 
11 fiscal year or fiscal biennium, (2) actual appropriations from
 
12 the general fund for the University of Hawaii plus any
 
13 recommended appropriations from the general fund for the
 
14 University of Hawaii for the fiscal year in progress, (3) the
 
15 appropriations from the general fund for the University of Hawaii
 
16 for the previous fiscal year, and (4) the general fund
 
17 appropriation ceiling for the University of Hawaii as established
 
18 by subsection (b) for the fiscal year in progress and for the
 
19 ensuing fiscal year or, when necessary, for each fiscal year of
 
20 the ensuing biennium.
 
21      [(h)] (j)  The governor [or], the chief justice, or the
 
22 board of regents may propose appropriations from the general fund
 
23 for the executive or judicial branches[,] or the University of
 

 
Page 22                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 Hawaii, respectively, in excess of those allowed by subsection
 
 2 (b) if the governor [or], the chief justice, or the board of
 
 3 regents sets forth the dollar amount and the percentage change in
 
 4 excess of the appropriations allowed by subsection (b), and the
 
 5 reasons for proposing appropriations in excess of those allowed
 
 6 by subsection (b)."
 
 7      SECTION 14.  Section 37D-1, Hawaii Revised Statutes, is
 
 8 amended by amending the definition of "agency" to read as
 
 9 follows:
 
10      ""Agency" means the judiciary, the University of Hawaii, any
 
11 executive department, any independent commission, any board, any
 
12 authority, any bureau, any office, any other establishment of the
 
13 State (except the legislature and its agencies), or any public
 
14 corporation that is supported in whole or in part by state funds,
 
15 or any agent thereof, authorized by law to expend available
 
16 moneys."
 
17      SECTION 15.  Section 40-1, Hawaii Revised Statutes, is
 
18 amended by amending subsections (b) and (c) to read as follows:
 
19      "(b)  With respect to the executive branch, except [the
 
20 University of Hawaii and] the department of education, the
 
21 comptroller shall have complete supervision of all accounts.  The
 
22 comptroller shall preaudit all proposed payments of $10,000 or
 
23 more to determine the propriety of expenditures and compliance
 

 
Page 23                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 with executive orders and rules that may be in effect.  When
 
 2 necessary, the comptroller shall withhold approval of any
 
 3 payment.  Whenever approval is withheld, the department or agency
 
 4 concerned shall be promptly notified.  With respect to [the
 
 5 University of Hawaii and] the department of education, the
 
 6 comptroller shall issue warrants for the release of funds for the
 
 7 operating costs of [the university or] the department of
 
 8 education[, as applicable,] in amounts and at times mutually
 
 9 agreed upon by the governor or director of finance and the
 
10 [university or] department of education[, as applicable];
 
11 provided:
 
12      (1)  The amounts released shall not exceed the allotment
 
13           ceilings for the respective funding sources of [the
 
14           university's or] the department of education's
 
15           appropriations established by the governor for an
 
16           allotment period pursuant to section 37-34; and
 
17      (2)  The comptroller may issue warrants as an advance from
 
18           the state treasury to the University of Hawaii and the
 
19           department of education to establish a checking account
 
20           and provide working capital in amounts and at times
 
21           mutually agreed upon by the governor or director of
 
22           finance and the University of Hawaii and the department
 
23           of education.
 

 
Page 24                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 The [University of Hawaii and the] department of education shall
 
 2 preaudit all proposed payments to determine the propriety of
 
 3 expenditures and compliance with applicable laws, executive
 
 4 orders, and rules as may be in effect.  The [University of Hawaii
 
 5 and the] department of education shall make disbursements for
 
 6 operating expenses from the amounts released by the comptroller
 
 7 and maintain records and documents necessary to support those
 
 8 disbursements at times mutually agreed upon by [the university
 
 9 president or] the superintendent of education[, as applicable,]
 
10 and the comptroller; provided that when requested by the
 
11 university or department of education, the comptroller shall make
 
12 all disbursements for the [university or] department of
 
13 education, as applicable, subject to available allotment.  Funds
 
14 released pursuant to this section shall be deposited by the
 
15 [university or] department of education[, as applicable,] in
 
16 accordance with the provisions applicable to the director of
 
17 finance by chapter 38.  Any interest earned on the deposit of
 
18 funds released pursuant to this section shall be deposited in the
 
19 state treasury at the end of each fiscal year.
 
20      (c)  With respect to the judiciary [and], the legislature,
 
21 and the University of Hawaii, the comptroller shall make
 
22 available to the judiciary [and], the legislature, and the
 
23 University of Hawaii the total amount appropriated to each,
 

 
Page 25                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 except that the judiciary [and], the legislature, and the
 
 2 University of Hawaii may request the comptroller's services in
 
 3 maintaining custody of the amount appropriated to each and in
 
 4 making payments therefrom.  When such services are requested, the
 
 5 comptroller shall make all disbursements requested by the
 
 6 judiciary [or], the legislature, or the University of Hawaii, but
 
 7 shall not make any disbursement for which no appropriation has
 
 8 been made or which would cause a specific appropriation to be
 
 9 exceeded."
 
10      SECTION 16.  Section 40-2, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§40-2 Accounting systems and internal control; enforcing
 
13 the use of and inspection of the same.  The accounting system
 
14 installed by the commission on public accountancy under Act 181,
 
15 Session Laws of Hawaii 1923, as amended by Act 220, Session Laws
 
16 of Hawaii 1925, for use in the offices of the comptroller,
 
17 director of finance, departmental and agency services of the
 
18 State, and the auditors, treasurers, departmental and agency
 
19 services of the several counties shall be the accounting and
 
20 reporting systems of the State and counties; provided [that the
 
21 University of Hawaii may install a different accounting system
 
22 which shall be in conformity with generally accepted accounting
 
23 principles as applied to colleges and universities; and provided
 

 
Page 26                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 further] that the department of education may install a different
 
 2 accounting system which shall be in conformity to generally
 
 3 accepted accounting principles.  The comptroller shall make such
 
 4 changes and modifications in the accounting system as shall from
 
 5 time to time appear to be in the best interest of the State and
 
 6 counties.
 
 7      The departments and agencies of the executive branch are
 
 8 respectively charged with the responsibility to maintain an
 
 9 adequate system of internal control and with the further
 
10 responsibility to see that the internal control system continues
 
11 to function effectively as designed.  The comptroller shall make
 
12 such investigations and audits from time to time to enforce the
 
13 use of the accounting system and internal control systems in the
 
14 executive branch.
 
15      The judiciary, the legislature, the University of Hawaii,
 
16 and each county shall be responsible for the establishment and
 
17 maintenance of its respective internal control system."
 
18      SECTION 17.  Section 40-6, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§40-6 Approval of business and accounting forms.  The
 
21 comptroller shall determine the forms required to adequately
 
22 supply accounting and statistical data for the state government.
 
23 The comptroller shall require heads of departments and
 

 
Page 27                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 establishments of the state government to submit proposed new
 
 2 forms or proposed changes in current business and accounting
 
 3 forms for review and approval before ordering the same printed;
 
 4 except that [the University of Hawaii and] the department of
 
 5 education shall be subject to this requirement only with respect
 
 6 to uniform business and accounting forms of statewide use in the
 
 7 State's accounting system.  All standard state forms shall be
 
 8 classified, numbered, and standardized in design, dimensions,
 
 9 color, and grade of paper and recorded in a catalogue of
 
10 accounting and statistical forms by the comptroller."
 
11      SECTION 18.  Section 40-51, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§40-51  Money drawn only on warrants.  Excepting moneys
 
14 paid for the redemption of bonds of the state debt, and the
 
15 interest coupons of the same, and for interest on overdue
 
16 warrants, and drafts against special deposits and for the
 
17 expenses of the legislature [and], the judiciary, and the
 
18 University of Hawaii, and payment authorized by the comptroller
 
19 by means of electronic funds transfers and through automated
 
20 clearinghouses for the purposes of implementing an electronic
 
21 benefits transfer system for the department of human services, no
 
22 money shall be drawn from or out of the treasury except upon
 
23 warrants, substantially in the form of section 40-52, issued from
 

 
Page 28                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 the comptroller's office; provided that upon request, the
 
 2 comptroller shall provide financial services involving the
 
 3 issuance of warrants on behalf of the legislature [and], the
 
 4 judiciary[.], and the University of Hawaii.  Every warrant shall
 
 5 be signed by the comptroller or the comptroller's deputy or by
 
 6 means of any mechanical check signer that may be adopted by the
 
 7 comptroller, and shall be made payable upon such date as may be
 
 8 approved by the director of finance to the order of the person to
 
 9 whom the State is directly indebted."
 
10      SECTION 19.  Section 40-58, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§40-58  In favor of assignees.  No assignment of moneys by
 
13 a person to whom the State is directly indebted shall be
 
14 effective unless the assignment is first approved by the
 
15 comptroller or, in the case of [the University of Hawaii and] the
 
16 department of education, by [their] its respective chief
 
17 financial [officers.] officer.  The comptroller or the chief
 
18 financial [officers of the University of Hawaii and] officer of
 
19 the department of education may prescribe the form for an
 
20 assignment, and may approve the assignment within a reasonable
 
21 time period if, in their respective discretion, the rights or
 
22 obligations of the State[, the University of Hawaii,] or the
 
23 department of education under any contract or other undertaking
 

 
Page 29                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 or under any law, rule, or order by a competent authority will
 
 2 not be prejudiced thereby.  Upon approval of the assignment, the
 
 3 comptroller or the [respective] chief financial [officers of the
 
 4 University of Hawaii and] officer of the department of education
 
 5 shall draw a warrant payable to the assignee.  Except as to
 
 6 contracts encumbered by the comptroller[, the University of
 
 7 Hawaii,] or the department of education, each expending agency,
 
 8 upon notification of the comptroller's approval of an assignment,
 
 9 shall prepare a claim for payment in accordance with the terms of
 
10 the assignment."
 
11      SECTION 20.  Section 40-81, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§40-81  Report by agencies receiving special moneys.  All
 
14 state officers, departments, boards, bureaus, commissions, or
 
15 agencies collecting or receiving any moneys not required by law
 
16 to be deposited in the state treasury shall report to the
 
17 comptroller all receipts and disbursements on account thereof for
 
18 each quarterly period of the calendar year not later than the
 
19 fifteenth day following the end of each quarterly period on such
 
20 forms and under such rules as may be prescribed by the
 
21 comptroller; provided that with respect to all moneys held
 
22 outside the state treasury by [the University of Hawaii or] the
 
23 department of education pursuant to the authority granted to [the
 

 
Page 30                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 university and] the department of education by this chapter, [the
 
 2 University of Hawaii and] the department of education shall
 
 3 report to the comptroller all transactions for each quarterly
 
 4 period not later than the fifteenth day following the end of each
 
 5 quarterly period on such forms and under such rules as may be
 
 6 prescribed by the comptroller."
 
 7      SECTION 21.  Section 40-84, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§40-84  Petty cash funds; regulations.  Whenever the head
 
10 of any state department, board, bureau, commission, or other
 
11 agency deems it necessary to have a petty cash fund for the
 
12 proper transaction of the business of the agency, a written
 
13 application therefor shall be made to the comptroller setting
 
14 forth the details covering the purposes and uses of and for the
 
15 fund.  The comptroller, before issuing a state warrant for that
 
16 purpose, shall determine whether or not the business of the
 
17 agency warrants the establishment of such a fund, and if the
 
18 comptroller is satisfied that such a fund is necessary, the
 
19 comptroller shall issue a state warrant to such agency for an
 
20 amount as the comptroller shall determine, not to exceed the sum
 
21 of $100,000, except that this limitation of $100,000 shall not
 
22 apply to [the University of Hawaii and] the stadium authority.
 
23      The comptroller may prescribe such rules as the comptroller
 

 
Page 31                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 may deem necessary for the proper administration and
 
 2 accountability of these funds."
 
 3      SECTION 22.  Section 76-4, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§76-4 Agreements of state, county departments, judiciary,
 
 6 [and] the Hawaii health systems corporation[.], and the
 
 7 University of Hawaii.  The state department of human resources
 
 8 development, the judiciary, the several departments of civil
 
 9 service of the counties, [and] the Hawaii health systems
 
10 corporation, and the University of Hawaii may enter into
 
11 agreements for the joint administration of matters that may be
 
12 practicable and consistent with this chapter and chapter 77,
 
13 including the conducting of examinations and other procedures for
 
14 the establishment and use of eligible lists, reciprocity in the
 
15 use of eligible lists, and the conducting of salary studies.  All
 
16 eligible lists established or used under the agreements shall be
 
17 as fully effective as those established or used separately."
 
18      SECTION 23.  Section 76-5, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§76-5 Furnishing of services and facilities.  Subject to
 
21 the rules of the state department of human resources development,
 
22 the director of human resources development may enter into
 
23 agreements with the judiciary, any county, [and] the Hawaii
 

 
Page 32                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 health systems corporation, and the University of Hawaii to
 
 2 furnish services and facilities of the state department to the
 
 3 judiciary, any county, [and] the Hawaii health systems
 
 4 corporation, and the University of Hawaii in the administration
 
 5 of civil service including position classification in the
 
 6 judiciary, any county, [and] the Hawaii health systems
 
 7 corporation[.], and the University of Hawaii.  The agreements may
 
 8 provide for the reimbursement to the State of the reasonable
 
 9 value of the services and facilities furnished, as determined by
 
10 the director.  The judiciary, all counties, and the Hawaii health
 
11 systems corporation, and the University of Hawaii are authorized
 
12 to enter into the agreements."
 
13      SECTION 24.  Section 76-5.5, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§76-5.5  Recruitment flexibility for the counties, the
 
16 judiciary, [and] the Hawaii health systems corporation[.], and
 
17 the University of Hawaii.  Notwithstanding section 76-23, or any
 
18 other provision to the contrary, the directors of the county
 
19 departments of civil service, the administrative director of the
 
20 courts, [and] the Hawaii health systems corporation chief
 
21 executive officer's designee, and the designee of the president
 
22 of the University of Hawaii may determine, establish, and
 
23 maintain the manner in which positions shall be filled in
 

 
Page 33                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 accordance with section 78-1 and the following standards:
 
 2      (1)  Equal opportunity for all regardless of race, sex, age,
 
 3           religion, color, ancestry, physical handicap, or
 
 4           politics;
 
 5      (2)  First consideration for competent employees already
 
 6           within public service; and
 
 7      (3)  Impartial selection of the ablest person through
 
 8           competitive means which are fair, objective, and
 
 9           practical."
 
10      SECTION 25.  Section 76-11, Hawaii Revised Statutes, is
 
11 amended by amending the definition of "department" to read as
 
12 follows:
 
13     "(4)  "Department" includes the judicial branch, the
 
14           University of Hawaii, and any department, board,
 
15           commission, or agency of the State;"
 
16      SECTION 26.  Section 76-16, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§76-16  Civil service and exemptions.  The civil service to
 
19 which this part applies shall comprise all positions in the State
 
20 now existing or hereafter established and embrace all personal
 
21 services performed for the State, except the following:
 
22      (1)  Commissioned and enlisted personnel of the Hawaii
 
23           national guard as such, and positions in the Hawaii
 

 
Page 34                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           national guard that are required by state or federal
 
 2           laws or regulations or orders of the national guard to
 
 3           be filled from those commissioned or enlisted
 
 4           personnel;
 
 5      (2)  Positions filled by persons employed by contract where
 
 6           the director of human resources development has
 
 7           certified that the service is special or unique or is
 
 8           essential to the public interest and that, because of
 
 9           circumstances surrounding its fulfillment, personnel to
 
10           perform the service cannot be obtained through normal
 
11           civil service recruitment procedures.  Any such
 
12           contract may be for any period not exceeding one year;
 
13      (3)  Positions of a temporary nature needed in the public
 
14           interest where the need for the position does not
 
15           exceed one year, but before any person may be employed
 
16           to render the temporary service, the director shall
 
17           certify that the service is of a temporary nature and
 
18           that recruitment through normal civil service
 
19           recruitment procedures is not practicable;
 
20      (4)  Positions filled by the legislature or by either house
 
21           or any committee thereof;
 
22      (5)  Employees in the office of the governor and household
 
23           employees at Washington Place;
 

 
Page 35                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      (6)  Positions filled by popular vote;
 
 2      (7)  Department heads, officers, and members of any board,
 
 3           commission, or other state agency whose appointments
 
 4           are made by the governor or are required by law to be
 
 5           confirmed by the senate;
 
 6      (8)  Judges, referees, receivers, masters, jurors, notaries
 
 7           public, land court examiners, court commissioners, and
 
 8           attorneys appointed by a state court for a special
 
 9           temporary service;
 
10      (9)  One bailiff for the chief justice of the supreme court
 
11           who shall have the powers and duties of a court officer
 
12           and bailiff under section 606-14; one secretary or
 
13           clerk for each justice of the supreme court, each judge
 
14           of the intermediate appellate court, and each judge of
 
15           the circuit court; one secretary for the judicial
 
16           council; one deputy administrative director of the
 
17           courts; three law clerks for the chief justice of the
 
18           supreme court, two law clerks for each associate
 
19           justice of the supreme court and each judge of the
 
20           intermediate appellate court, one law clerk for each
 
21           judge of the circuit court, two additional law clerks
 
22           for the civil administrative judge of the circuit court
 
23           of the first circuit, two additional law clerks for the
 

 
Page 36                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           criminal administrative judge of the circuit court of
 
 2           the first circuit, one additional law clerk for the
 
 3           senior judge of the family court of the first circuit,
 
 4           two additional law clerks for the civil motions judge
 
 5           of the circuit court of the first circuit, two
 
 6           additional law clerks for the criminal motions judge of
 
 7           the circuit court of the first circuit, and two law
 
 8           clerks for the administrative judge of the district
 
 9           court of the first circuit; and one private secretary
 
10           for the administrative director of the courts, the
 
11           deputy administrative director of the courts, each
 
12           department head, each deputy or first assistant, and
 
13           each additional deputy, or assistant deputy, or
 
14           assistant defined in paragraph (16);
 
15     (10)  First deputy and deputy attorneys general, the
 
16           administrative services manager of the department of
 
17           the attorney general, one secretary for the
 
18           administrative services manager, an administrator and
 
19           any support staff for the criminal and juvenile justice
 
20           resources coordination functions, and law clerks;
 
21     (11)  Teachers, principals, vice-principals, district
 
22           superintendents, chief deputy superintendents, other
 
23           certificated personnel, and not more than twenty
 

 
Page 37                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           noncertificated administrative, professional, and
 
 2           technical personnel not engaged in instructional work
 
 3           in the department of education, the special assistant
 
 4           to the state librarian, one secretary for the special
 
 5           assistant to the state librarian, and members of the
 
 6           faculty of the University of Hawaii, including research
 
 7           workers, extension agents, personnel engaged in
 
 8           instructional work, and administrative, professional,
 
 9           [and] technical personnel, and classified staff of the
 
10           university;
 
11     (12)  Employees engaged in special, research, or
 
12           demonstration projects approved by the governor;
 
13     (13)  Positions filled by inmates, kokuas, patients of state
 
14           institutions, persons with severe physical or mental
 
15           handicaps participating in the work experience training
 
16           programs, and students and positions filled through
 
17           federally funded programs that provide temporary public
 
18           service employment such as the federal Comprehensive
 
19           Employment and Training Act of 1973;
 
20     (14)  A custodian or guide at Iolani Palace, the Royal
 
21           Mausoleum, and Hulihee Palace;
 
22     (15)  Positions filled by persons employed on a fee,
 
23           contract, or piecework basis, who may lawfully perform
 

 
Page 38                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           their duties concurrently with their private business
 
 2           or profession or other private employment and whose
 
 3           duties require only a portion of their time, if it is
 
 4           impracticable to ascertain or anticipate the portion of
 
 5           time to be devoted to the service of the State;
 
 6     (16)  Positions of first deputies or first assistants of each
 
 7           department head appointed under or in the manner
 
 8           provided in section 6, Article V, of the State
 
 9           Constitution; three additional deputies or assistants
 
10           either in charge of the highways, harbors, and airports
 
11           divisions or other functions within the department of
 
12           transportation as may be assigned by the director of
 
13           transportation, with the approval of the governor; four
 
14           additional deputies in the department of health, each
 
15           in charge of one of the following:  behavioral health,
 
16           environmental health, hospitals, and health resources
 
17           administration, including other functions within the
 
18           department as may be assigned by the director of
 
19           health, with the approval of the governor; an
 
20           administrative assistant to the state librarian; and an
 
21           administrative assistant to the superintendent of
 
22           education;
 
23     (17)  Positions specifically exempted from this part by any
 

 
Page 39                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           other law; provided that all of the positions defined
 
 2           by paragraph (9) shall be included in the position
 
 3           classification plan;
 
 4     (18)  Positions in the state foster grandparent program and
 
 5           positions for temporary employment of senior citizens
 
 6           in occupations in which there is a severe personnel
 
 7           shortage or in special projects;
 
 8     (19)  Household employees at the official residence of the
 
 9           president of the University of Hawaii;
 
10     (20)  Employees in the department of education engaged in the
 
11           supervision of students during lunch periods and in the
 
12           cleaning of classrooms after school hours on a less
 
13           than half-time basis;
 
14     (21)  Employees hired under the tenant hire program of the
 
15           housing and community development corporation of
 
16           Hawaii; provided that not more than twenty-six per cent
 
17           of the corporation's work force in any housing project
 
18           maintained or operated by the corporation shall be
 
19           hired under the tenant hire program;
 
20     (22)  Positions of the federally funded expanded food and
 
21           nutrition program of the University of Hawaii that
 
22           require the hiring of nutrition program assistants who
 
23           live in the areas they serve;
 

 
Page 40                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1     (23)  Positions filled by severely handicapped persons who
 
 2           are certified by the state vocational rehabilitation
 
 3           office that they are able to perform safely the duties
 
 4           of the positions;
 
 5     (24)  One public high school student to be selected by the
 
 6           Hawaii state student council as a nonvoting member on
 
 7           the board of education as authorized by the State
 
 8           Constitution;
 
 9     (25)  Sheriff, first deputy sheriff, and second deputy
 
10           sheriff; and
 
11     (26)  A gender and other fairness coordinator hired by the
 
12           judiciary.
 
13      The director shall determine the applicability of this
 
14 section to specific positions.
 
15      Nothing in this section shall be deemed to affect the civil
 
16 service status of any incumbent as it existed on July 1, 1955."
 
17      SECTION 27.  Section 77-1, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending the definition of "chief executive officer"
 
20 to read:
 
21      ""Chief executive officer" means the governor in the case of
 
22 the State, the chief justice of the supreme court in the case of
 
23 the judiciary, the chief executive officer in the case of the
 

 
Page 41                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 Hawaii health systems corporation, the board of regents in the
 
 2 case of the University of Hawaii, the mayor in the case of the
 
 3 city and county of Honolulu or the counties of Hawaii, Maui, and
 
 4 Kauai."
 
 5      2.  By amending the definitions of "department" and
 
 6 "director" to read:
 
 7      ""Department" includes the judicial branch, the Hawaii
 
 8 health systems corporation, the University of Hawaii, and any
 
 9 department, board, commission, or agency of the State or any of
 
10 its political subdivisions.
 
11      "Director" means the director of human resources development
 
12 in the case of the State, the administrative director of the
 
13 courts in the case of the judiciary, the chief executive officer
 
14 in the case of the Hawaii health systems corporation, the
 
15 president in the case of the University of Hawaii, the director
 
16 of civil service in the case of the city and county of Honolulu,
 
17 or the respective personnel directors in the case of the counties
 
18 of Hawaii, Maui, and Kauai."
 
19      3.  By amending the definition of "fiscal officer" to read:
 
20      ""Fiscal officer" means the director of finance in the case
 
21 of the State, the administrative director of the courts in the
 
22 case of the judiciary, the chief executive officer in the case of
 
23 the Hawaii health systems corporation, the president in the case
 

 
Page 42                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 of the University of Hawaii, the director of finance in the case
 
 2 of the city and county of Honolulu and the counties of Hawaii,
 
 3 Maui, and Kauai."
 
 4      SECTION 28.  Section 78-51, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§78-51  Applicability of chapter to the judiciary [and],
 
 7 the Hawaii health systems corporation[.], and the University of
 
 8 Hawaii.  All of the provisions of this chapter apply with equal
 
 9 force to the judiciary [and], the Hawaii health systems
 
10 corporation, and the University of Hawaii as to the State.  The
 
11 powers and duties assigned in this chapter shall, with respect to
 
12 the judiciary, be assigned to the chief justice of the supreme
 
13 court in the place and stead of the governor or chief executive
 
14 officer for the State, and to the administrative director of the
 
15 courts in the place and stead of the director of human resources
 
16 development.  The powers and duties assigned in this chapter,
 
17 with respect to the Hawaii health systems corporation, shall be
 
18 assigned to the chief executive officer of the Hawaii health
 
19 systems corporation in the place and stead of the governor or
 
20 chief executive officer for the State, and to the Hawaii health
 
21 systems chief executive officer's designee in the place and stead
 
22 of the director of human resources development.  The powers and
 
23 duties assigned in this chapter, with respect to the University
 

 
Page 43                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 of Hawaii, shall be assigned to the board of regents of the
 
 2 University of Hawaii in the place and stead of the governor or
 
 3 chief executive officer for the State, and to the president of
 
 4 the University of Hawaii in the place and stead of the director
 
 5 of human resources development."
 
 6      SECTION 29.  Section 79-31, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§79-31  Judiciary [and], the Hawaii health systems
 
 9 corporation[;], and the University of Hawaii; powers and duties.
 
10 All of the powers and duties assigned in this chapter to the
 
11 governor or the director of human resources development, with
 
12 respect to the judiciary, shall be assigned to the chief justice
 
13 of the supreme court or the administrative director of the
 
14 courts, and with respect to the Hawaii health systems
 
15 corporation, shall be assigned to the chief executive officer of
 
16 the Hawaii health systems corporation or designee[.], and with
 
17 respect to the University of Hawaii, shall be assigned to the
 
18 board of regents of the University of Hawaii or the president."
 
19      SECTION 30.  Section 80-21, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§80-21  Judiciary [and], the Hawaii health systems
 
22 corporation[;], and the University of Hawaii; powers and duties.
 
23 All of the powers and duties assigned in this chapter to the
 

 
Page 44                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 governor or the department or director of human resources
 
 2 development, with respect to the judiciary, shall be assigned to
 
 3 the chief justice of the supreme court or the administrative
 
 4 director of the courts, [and] with respect to the Hawaii health
 
 5 systems corporation, shall be assigned to the chief executive
 
 6 officer of the Hawaii health systems corporation or designee[.],
 
 7 and with respect to the University of Hawaii, shall be assigned
 
 8 to the board of regents of the University of Hawaii or the
 
 9 president."
 
10      SECTION 31.  Section 81-21, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§81-21  Judiciary [and], the Hawaii health systems
 
13 corporation[;], and the University of Hawaii; powers and duties.
 
14 All of the powers and duties assigned in this chapter to the
 
15 governor or the director of human resources development, with
 
16 respect to the judiciary, shall be exercised by the chief justice
 
17 of the supreme court or the administrative director of the
 
18 courts, [and] with respect to the Hawaii health systems
 
19 corporation, shall be assigned to the chief executive officer of
 
20 the Hawaii health systems corporation or designee[.], and with
 
21 respect to the University of Hawaii, shall be assigned to the
 
22 board of regents of the University of Hawaii or the president."
 
23      SECTION 32.  Section 82-6, Hawaii Revised Statutes, is
 

 
Page 45                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "§82-6  Judiciary [and], the Hawaii health systems
 
 3 corporation[;], and the University of Hawaii; powers and duties.
 
 4 All of the powers and duties assigned in this chapter to the
 
 5 governor or the director of human resources development, with
 
 6 respect to the judiciary, shall be assigned to the chief justice
 
 7 of the supreme court or the administrative director of the
 
 8 courts[, and with].  With respect to the Hawaii health systems
 
 9 corporation, these duties shall be assigned to the chief
 
10 executive officer of the Hawaii health systems corporation or a
 
11 designee.  With respect to University of Hawaii, these duties
 
12 shall be assigned to the board of regents of the University of
 
13 Hawaii or the president."
 
14      SECTION 33.  Section 83-4, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§83-4 Judiciary [and], the Hawaii health systems
 
17 corporation[;], and the University of Hawaii; powers and duties.
 
18 All of the powers and duties assigned in this chapter to the
 
19 governor or the director of human resources development, with
 
20 respect to the judiciary, shall be exercised by the chief justice
 
21 of the supreme court or the administrative director of the
 
22 courts, [and] with respect to the Hawaii health systems
 
23 corporation, shall be assigned to the chief executive officer of
 

 
Page 46                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 the Hawaii health systems corporation or designee[.], and with
 
 2 respect to the University of Hawaii, shall be assigned to the
 
 3 board of regents of the University of Hawaii or the president."
 
 4      SECTION 34.  Section 103F-102, Hawaii Revised Statutes, is
 
 5 amended by amending the definition of "agency" to read as
 
 6 follows:
 
 7      ""Agency" means any department, authority, commission,
 
 8 council, board, committee, institution, legislative body, agency,
 
 9 or other establishment or office of the executive, legislative,
 
10 or judicial branch of the State, and includes the University of
 
11 Hawaii and the office of Hawaiian affairs."
 
12      SECTION 35.  Section 304-2, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§304-2 University to be public corporation; general
 
15 powers.  The University of Hawaii is established as the state
 
16 university and constituted a body corporate.  The university,
 
17 under the direction of the board of regents, shall have the
 
18 following general powers:
 
19      (1)  To adopt, amend, and repeal bylaws governing the
 
20           conduct of its business and the performance of the
 
21           powers and duties granted to or imposed upon it by law.
 
22      (2)  To acquire in any lawful manner any property, real,
 
23           personal, or mixed, tangible or intangible, or any
 

 
Page 47                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           interest therein; to hold, maintain, use, and operate
 
 2           the same; and to sell, lease, or otherwise dispose of
 
 3           the same at such time, in such manner, and to the
 
 4           extent deemed necessary or appropriate to carry out its
 
 5           purposes.
 
 6      (3)  Notwithstanding and without complying with section
 
 7           103-7 or any other law to the contrary, to acquire,
 
 8           purchase, construct, reconstruct, improve, better, or
 
 9           extend any university project as defined in chapter
 
10           306.
 
11      (4)  Notwithstanding and without complying with part III of
 
12           chapter 39, to issue revenue bonds under chapter 306
 
13           from time to time in such principal amounts and for any
 
14           university project as defined in chapter 306; which the
 
15           board of regents shall determine.
 
16      (5)  To enter into and perform such contracts, leases,
 
17           cooperative agreements, or other transactions as may be
 
18           necessary in the conduct of its business and on such
 
19           terms as it may deem appropriate, with any agency or
 
20           instrumentality of the United States, or with any
 
21           state, territory, or possession, or with any political
 
22           subdivision thereof, or with any person, firm,
 
23           association, or corporation.
 

 
Page 48                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1     [(4)] (6)  To determine the character of and the necessity
 
 2           for its obligations and expenditures, and the manner in
 
 3           which they shall be incurred, allowed, and paid,
 
 4           subject to provisions of law specifically applicable to
 
 5           the university.
 
 6     [(5)] (7)  To execute, in accordance with its bylaws, all
 
 7           instruments necessary or appropriate in the exercise of
 
 8           any of its powers.
 
 9     [(6)] (8)  To take such actions as may be necessary or
 
10           appropriate to carry out the powers conferred upon it
 
11           by law."
 
12      SECTION 36.  Section 304-3, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§304-3 Regents; appointment; tenure; qualifications;
 
15 meetings.  (a)  The affairs of the university shall be under the
 
16 general management and control of the board of regents consisting
 
17 of twelve members who shall be appointed and may be removed by
 
18 the governor.  No more than six of the members shall be members
 
19 of the same political party and at least part of the membership
 
20 of the board shall represent geographic subdivisions of the
 
21 State.  At least one member shall be a University of Hawaii
 
22 student at the time of the initial appointment.
 
23      (b)  The term of each member shall be for four years;
 

 
Page 49                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 provided that the term of the student member shall be for two
 
 2 years[.]; and provided further that the student member may be
 
 3 reappointed for one additional term even though the member may no
 
 4 longer be a student at the time of reappointment.  Except as
 
 5 otherwise provided by statute, state officers shall be eligible
 
 6 to appointment and membership.  Every member may serve beyond the
 
 7 expiration date of the member's term of appointment until the
 
 8 member's successor has been appointed and has qualified.  The
 
 9 board shall at its first meeting after June 30, elect a
 
10 chairperson and vice-chairperson, who shall serve until
 
11 adjournment of its first meeting after June 30 of the next year
 
12 or thereafter until their successors are appointed and have
 
13 qualified and whose election shall be immediately certified by
 
14 the board to the chief election officer.  The board shall appoint
 
15 a secretary, who shall not be a member of the board.  The
 
16 president of the university shall act as executive officer of the
 
17 board.
 
18      (c)  The board shall meet not less often than ten times
 
19 annually, and may from time to time meet in each of the counties
 
20 of Hawaii, Maui, and Kauai.
 
21      (d)  The members of the board shall serve without pay but
 
22 shall be entitled to their traveling expenses within the State
 
23 when attending meetings of the board or when actually engaged in
 

 
Page 50                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 business relating to the work of the board."
 
 2      SECTION 37.  Section 304-4, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§304-4 Powers of regents; official name.(a)  The board
 
 5 of regents shall have management and control of the general
 
 6 affairs, and exclusive jurisdiction over the internal
 
 7 organization and management[,] of the university[.] through its
 
 8 executive officer.
 
 9      (b)  The board of regents shall appoint and may remove an
 
10 executive officer to be known as the president of the University
 
11 of Hawaii, and shall set the salary of the president.  It may
 
12 appoint a treasurer and such other officers as it deems
 
13 necessary.  It may authorize any officer, elected or appointed by
 
14 it, to approve and sign on its behalf any voucher or other
 
15 document which the board may approve and sign.  It may delegate
 
16 to the president or the president's designee the authority to
 
17 render the final decision in contested case proceedings subject
 
18 to chapter 91, as it deems appropriate.  It may purchase or
 
19 otherwise acquire lands, buildings, appliances, and other
 
20 property for the purposes of the university and expend such sums
 
21 of money as may be from time to time placed at the disposal of
 
22 the university from whatever source.  All lands, buildings,
 
23 appliances, and other property so purchased or acquired shall be
 

 
Page 51                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 and remain the property of the university to be used in
 
 2 perpetuity for the benefit of the university.  The board of
 
 3 regents, in accordance with law, shall manage the inventory,
 
 4 equipment, surplus property, and expenditures of the university
 
 5 and, subject to chapter 91, may adopt rules, further controlling
 
 6 and regulating the same.
 
 7      [(b)] (c)  The board may charge resident and nonresident
 
 8 tuition fees for regular courses of instruction at any University
 
 9 of Hawaii campus, including any community college.
 
10      The board may also charge other fees for special programs of
 
11 instruction, including fees for the University Laboratory School,
 
12 as well as laboratory fees, course fees, fees for student
 
13 activities, and an information technology user fee.  The board
 
14 may charge other fees for summer session or evening courses,
 
15 including differential fees for nonresident students.
 
16      The board may waive entirely or reduce the tuition fee or
 
17 any of the other fees for graduate teaching and research
 
18 assistants.  The board may enter into agreements with government
 
19 and university officials of any other state or foreign country to
 
20 provide for reciprocal waiver of the nonresident tuition and fee
 
21 differential.  The board may waive the nonresident tuition and
 
22 fee differential for selected students from Pacific and Asian
 
23 jurisdictions when their presence would be beneficial to the
 

 
Page 52                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 university or the State.  The board may waive entirely or reduce
 
 2 the tuition fee or any of the other fees for students, resident
 
 3 or nonresident.  The board shall determine the percentage of
 
 4 allowable tuition and fee waivers for financial need and other
 
 5 university priorities.  These tuition waivers and waivers of the
 
 6 nonresident tuition and fee differential shall be awarded in
 
 7 accordance with guidelines established by the board.
 
 8      [(c)] (d)  The board shall adopt the necessary rules
 
 9 defining residence for tuition purposes herein; provided that the
 
10 basic rule shall be that a student shall qualify for the resident
 
11 tuition fee only if the following criteria are met:
 
12      (1)  The adult student, or in the case of a minor student,
 
13           the student's parents or guardians, has been a bona
 
14           fide resident of this State for at least twelve
 
15           consecutive months next preceding the student's first
 
16           day of officially scheduled instruction for any
 
17           semester or term in which the student is enrolling at
 
18           the particular college or campus; and
 
19      (2)  The adult or minor student has not been claimed as a
 
20           dependent for tax purposes for at least twelve months
 
21           next preceding the student's first day of officially
 
22           scheduled instruction for any semester or term in which
 
23           the student is enrolling at the particular college or
 

 
Page 53                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           campus by the student's parents or guardians who are
 
 2           nonresidents of the State; provided that this provision
 
 3           shall not apply in cases where the parent claiming the
 
 4           student as a dependent is entitled to do so under a
 
 5           child support order or agreement issued or entered into
 
 6           in conjunction with a divorce proceeding or legal
 
 7           separation agreement, and the other parent and the
 
 8           student meet the criteria set forth in paragraph (1).
 
 9      [(d)] (e)  The board shall develop internal policies and
 
10 procedures for the procurement of goods, services, and
 
11 construction, consistent with the goals of public accountability
 
12 and public procurement practices, but not subject to chapter
 
13 103D.  However, where possible, the board is encouraged to use
 
14 the provisions of chapter 103D; provided that the use of one or
 
15 more provisions of chapter 103D shall not constitute a waiver of
 
16 the exemption of chapter 103D and shall not subject the board to
 
17 any other provision of chapter 103D.
 
18      [(e)] (f)  The board may enter into concession agreements
 
19 without regard to chapter 102.
 
20      (g)  The board may enter into health and human services
 
21 agreements without regard to chapter 103F.
 
22      (h)  Any law to the contrary notwithstanding, the board may
 
23 impose fees for dishonored checks written or electronic funds
 

 
Page 54                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 transfers made for charges administered by the university.  Fees
 
 2 may include a late payment penalty, interest, and a service fee.
 
 3 The fees collected shall be deposited as a realization of the
 
 4 tuition and fees special fund.
 
 5      (i)  The board shall develop internal policies and
 
 6 procedures for personnel management, consistent with the goals of
 
 7 public accountability and public civil service management, but
 
 8 not subject to chapters 76 and 77, for classified staff currently
 
 9 employed by the university and those employed in the future.
 
10 However, where possible, the board is encouraged to follow the
 
11 provisions of chapters 76 and 77; provided that the use of one or
 
12 more provisions of chapters 76 and 77 shall not constitute a
 
13 waiver of the exemption of chapters 76 and 77 and shall not
 
14 subject the board to any other provisions of chapters 76 and 77.
 
15      [(f)] (j)  The official name of the board shall be Board of
 
16 Regents, University of Hawaii, and the board shall adopt and use
 
17 a common seal by which all official acts shall be authenticated."
 
18      SECTION 38.  Section 304-7, Hawaii Revised Statutes, is
 
19 amended by amending subsection (c) to read as follows:
 
20      "(c)  The board shall cause to be kept suitable books of
 
21 account wherein shall be recorded each gift, the essential facts
 
22 of the management thereof, and the expenditure of the income, and
 
23 a statement of all trust funds shall be included in the annual
 

 
Page 55                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 report to [the governor and] the legislature."
 
 2      SECTION 39.  Section 304-7.5, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§304-7.5  Budget appropriations; University of Hawaii.(a)
 
 5 Beginning in fiscal year 1998-1999, and every year thereafter,
 
 6 the general fund budget appropriations for the University of
 
 7 Hawaii shall be an amount not less than three times and not
 
 8 greater than five times the amount of regular tuition and related
 
 9 fee revenues estimated for that fiscal year.
 
10      (b)  Any general fund budget appropriation for the
 
11 University of Hawaii for operating purposes for any fiscal year
 
12 shall include the consideration of:
 
13      (1)  The fiscal condition of the State;
 
14      (2)  Enrollment;
 
15      (3)  Access to educational opportunity;
 
16      (4)  The mix of resident and nonresident students; and
 
17      (5)  Community service and noninstruction programs.
 
18      [(c)  No revenue received by the University of Hawaii
 
19 pursuant to the University of Hawaii tuition and fees special
 
20 fund established under section 304-16.5 may be used by the
 
21 governor or the director of finance as a justification for
 
22 reducing any budget request or allotment to the University of
 
23 Hawaii unless the university requests such a reduction.]"
 

 
Page 56                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      SECTION 40.  Section 304-7.8, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§304-7.8[]]  Appropriations for special and revolving
 
 4 funds of the University of Hawaii.  In any fiscal year if the
 
 5 amount of revenues deposited into a special or revolving fund of
 
 6 the university exceeds the amount appropriated from that fund for
 
 7 that year, the president may approve expenditures in excess of
 
 8 the amount appropriated, up to the amount by which revenues for
 
 9 that fund exceed the appropriations from that fund for a fiscal
 
10 year; provided the university shall submit annually a report to
 
11 [the governor and] the legislature of all expenditures in excess
 
12 of each fund's appropriation for each fiscal year."
 
13      SECTION 41.  Section 304-8, Hawaii Revised Statutes, is
 
14 amended by amending subsection (a) to read as follows:
 
15      "(a)  Moneys appropriated by the legislature for the
 
16 university shall be payable by the [director of finance,]
 
17 university upon vouchers approved by the board of regents or by
 
18 any officer elected or appointed by the board under section 304-4
 
19 and authorized by the board to approve such vouchers on behalf of
 
20 the board.  All moneys received by or on behalf of the board of
 
21 the university shall be deposited with the director of finance,
 
22 except that any moneys received from the federal government or
 
23 from private contributions shall be deposited and accounted for
 

 
Page 57                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 in accordance with conditions established by the agencies or
 
 2 persons from whom the moneys are received and except that [with
 
 3 the concurrence of the director of finance,] moneys received from
 
 4 the federal government for research, training, and other related
 
 5 purposes of a transitory nature and moneys in trust, special, or
 
 6 revolving funds administered by the university may be deposited
 
 7 in depositories other than the state treasury[; provided that the
 
 8 university informs the director of finance of the depositories in
 
 9 which moneys from the funds have been deposited, and submits
 
10 copies of annual statements from each of the depositories in
 
11 which the moneys from the funds are deposited].  All income from
 
12 regular credit tuition and tuition related course and fee charges
 
13 against students shall be deposited to the credit of the
 
14 University of Hawaii tuition and fees special fund pursuant to
 
15 section 304-16.5.  Income from university projects as defined and
 
16 described in sections 306-1 to 306-12, may be credited to special
 
17 or other funds."
 
18      SECTION 42.  Section 304-8.1, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§304-8.1  Research and training revolving fund.(a)  There
 
21 is established a University of Hawaii research and training
 
22 revolving fund into which shall be deposited one hundred per cent
 
23 of the total amount of indirect overhead revenues generated by
 

 
Page 58                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 the university from research and training programs.  The board of
 
 2 regents of the University of Hawaii is authorized to expend
 
 3 eighty-four per cent of the revenues deposited in the fund for:
 
 4      (1)  Research and training purposes which may result in
 
 5           additional research and training grants and contracts;
 
 6           and
 
 7      (2)  Facilitating research and training at the university.
 
 8      (b)  The University of Hawaii shall prepare and submit an
 
 9 annual report on the status of the research and training
 
10 revolving fund to the legislature twenty days before the
 
11 convening of each regular session.  The annual report shall
 
12 include but not be limited to a breakdown of travel expenses.
 
13      (c)  Notwithstanding sections 304-10, 304-8.92, and 304-8.96
 
14 to the contrary, the board of regents or its designee, may
 
15 establish a separate account within the research and training
 
16 revolving fund for the purpose of providing advance funding to
 
17 meet reimbursable costs incurred in connection with federally
 
18 financed research and training projects.  Any reimbursement
 
19 received as a result of providing advance funding shall be
 
20 deposited into the research and training revolving fund to be
 
21 used for the purpose of meeting reimbursable costs incurred in
 
22 connection with federally financed projects.
 
23      [(d)  Revenues deposited into the fund shall not be used as
 

 
Page 59                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 a basis for reducing any current or future budget request or
 
 2 allotment to the University of Hawaii unless the university
 
 3 requests such a reduction.]"
 
 4      SECTION 43.  Section 304-8.4, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§304-8.4  Vocational and technical training projects
 
 7 revolving fund.  There is established a revolving fund for the
 
 8 vocational and technical training projects of the community
 
 9 colleges and the University of Hawaii at Hilo into which shall be
 
10 deposited the receipts from fees for services, supplies, and use
 
11 of equipment provided by or in connection with these projects.
 
12 Funds deposited in this account shall be expended for vocational
 
13 and technical training projects, and supplies, equipment, and
 
14 services related thereto.
 
15      The University of Hawaii at Hilo shall report as of the
 
16 close of each fiscal year to [the governor and] the legislature
 
17 on the revolving fund's revenues and expenditures for the
 
18 reported year.  These reports shall be submitted not later than
 
19 twenty days prior to the convening of each regular session."
 
20      SECTION 44.  Section 304-8.92, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§304-8.92  Discoveries and inventions revolving fund.(a)
 
23 There is established a discoveries and inventions revolving fund
 

 
Page 60                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 into which shall be deposited four per cent of the total indirect
 
 2 overhead funds generated by the university for research and
 
 3 training purposes in the prior fiscal year.  Appropriations by
 
 4 the state legislature [subject to the approval of the governor],
 
 5 proceeds from the commercial exploitation of inventions and
 
 6 intellectual property developed at the university, gifts,
 
 7 donations, fees collected, and grants from public agencies and
 
 8 private persons may also be deposited into the fund for the
 
 9 purposes of supporting innovation and research commercialization
 
10 and the patenting, copyrighting, licensing, and marketing of
 
11 discoveries, inventions, and technologies developed at the
 
12 university.  The fund shall be used to develop technologies which
 
13 have potential commercial value, support the administration of
 
14 technology transfer activities, and facilitate economic
 
15 development through education and research undertaken at the
 
16 university.
 
17      (b)  The University of Hawaii shall provide an annual report
 
18 to [the governor and] the legislature describing all transactions
 
19 and activities involved in the administration of the discoveries
 
20 and inventions revolving fund."
 
21      SECTION 45.  Section 304-8.96, Hawaii Revised Statutes, is
 
22 amended by amending subsection (b) to read as follows:
 
23      "(b)  The University of Hawaii shall provide an annual
 

 
Page 61                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 report to [the governor and] the legislature describing all
 
 2 transactions and activities involved in the administration of the
 
 3 housing assistance revolving fund."
 
 4      SECTION 46.  Section 304-10, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§304-10  Loans; advances.  The university may borrow from
 
 7 time to time, sums [which in the aggregate shall not exceed
 
 8 $100,000,] from the state treasury; and the director of finance
 
 9 may make such loans to the university, without interest, provided
 
10 that the loans shall be repaid within the same fiscal year unless
 
11 extended by the director.  In addition to the foregoing, the
 
12 director may advance funds to the university when required to
 
13 meet reimbursable costs incurred in connection with federally
 
14 financed research and training projects[, and provided that such
 
15 advances shall not amount in the aggregate to more than $100,000
 
16 at any time]."
 
17      SECTION 47.  Section 304-16.5, Hawaii Revised Statutes, is
 
18 amended by amending subsection (a) to read as follows:
 
19      "(a)  There is established the University of Hawaii tuition
 
20 and fees special fund into which shall be deposited all revenue
 
21 collected by the university for regular, summer, and continuing
 
22 education credit tuition, tuition related course and fee charges,
 
23 University Laboratory school fees, and any other charges to
 

 
Page 62                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 students, except as provided by law.  Moneys deposited into the
 
 2 fund shall be expended to maintain or improve the university's
 
 3 programs and operations and shall not be[:
 
 4      (1)  Used as a justification for reducing any budget request
 
 5           or allotment to the University of Hawaii unless the
 
 6           university requests such a reduction;
 
 7      (2)  Transferred] transferred unless otherwise authorized by
 
 8           the legislature[; and
 
 9      (3)  Restricted by the governor or the director of finance
 
10           without the prior approval of the legislature].
 
11      Any rule, policy, or action of any agency or individual in
 
12 contravention of this subsection shall be void as against public
 
13 policy."
 
14      SECTION 48.  Section 304-19, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§304-19  Reporting of exempt fees of scholarship holders.
 
17 In computing its budget requests, the board of regents shall not
 
18 show amounts of tuition and registration fees from which holders
 
19 of scholarships are exempted.  These amounts shall be reported
 
20 for information purposes to the [department of budget and
 
21 finance] legislature but shall not be included in the statement
 
22 of university income."
 
23      SECTION 49.  Section 304-75, Hawaii Revised Statutes, is
 

 
Page 63                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "§304-75  Powers and duties of agency.  The board of regents
 
 3 may:
 
 4      (1)  Formulate, pursuant to the standards therefor set forth
 
 5           in section 7(a) of the Act of Congress, agricultural
 
 6           plans for this State for each calendar year, and from
 
 7           time to time make such revisions in the agricultural
 
 8           plans as may be necessary to conform to such standards;
 
 9      (2)  Utilize, in formulating and revising the agricultural
 
10           plans, the assistance of the agricultural extension
 
11           service and the agricultural experiment station;
 
12      (3)  Designate in such agricultural plans the board of
 
13           regents, University of Hawaii, as the agency of this
 
14           State to administer the agricultural plans;
 
15      (4)  Submit the agricultural plans to the Secretary of
 
16           Agriculture of the United States, prior to such time
 
17           and in such manner and form as the Secretary may
 
18           prescribe;
 
19      (5)  Receive on behalf of the State any grants made pursuant
 
20           to section 7 of the Soil Conservation and Domestic
 
21           Allotment Act, and utilize and expend the grants in
 
22           accordance with such agricultural plans as may have
 
23           been approved by the Secretary of Agriculture;
 

 
Page 64                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      (6)  Make provision for establishment of state, county, and
 
 2           community committees or associations of agricultural
 
 3           producers, organized for such purpose, and for
 
 4           participation by them in the administration of the
 
 5           agricultural plans;
 
 6      (7)  Employ such personal services and incur such other
 
 7           expenses as it finds necessary for the efficient
 
 8           exercise of its powers and duties under this section;
 
 9      (8)  Utilize in the administration of the provisions hereof
 
10           available services and assistance of other agencies of
 
11           this State and of the agricultural extension service
 
12           and the agricultural experiment station of the
 
13           University of Hawaii;
 
14      (9)  Delegate to committees, associations, individuals,
 
15           corporations, or other agencies of this State, such
 
16           functions in carrying out sections 304-73 to 304-75 as
 
17           it deems suitable, and exercise all other powers and
 
18           authorities and do any and all other things which it
 
19           may deem necessary or proper to the performance of its
 
20           duties and functions hereunder;
 
21     (10)  Provide for the submission to the Secretary of
 
22           Agriculture of such reports as may be deemed requisite,
 
23           including such reports as may be required to ascertain
 

 
Page 65                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           whether the agricultural plans are being carried out
 
 2           according to their terms;
 
 3     (11)  Prescribe such rules and regulations as may be
 
 4           necessary or expedient for the effective administration
 
 5           of the agricultural plans, and assure the correctness
 
 6           of and make possible the verification of such reports
 
 7           as may be required by the terms of the agricultural
 
 8           plans;
 
 9     (12)  Submit to the [governor of the State] legislature an
 
10           annual report for each year covering the administration
 
11           and operation of such program.
 
12      The board shall perform its duties and functions as such
 
13 agency under sections 304-73 to 304-75 separately and distinctly
 
14 from the performance of its duties and functions under any other
 
15 act or in any other capacity, except that the board may utilize
 
16 the services and the assistance of the personnel and faculties
 
17 normally used by it in the performance of such other functions if
 
18 it finds that the utilization of such services and assistance is
 
19 necessary to, or is calculated to assist substantially in, the
 
20 effective administration of such sections and that such personnel
 
21 or faculties may be utilized without interference with the
 
22 effective performance of such other duties and functions."
 
23      SECTION 50.  Section 304-93, Hawaii Revised Statutes, is
 

 
Page 66                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 amended by amending subsection (b) to read as follows:
 
 2      "(b)  The university may spend out of the state higher
 
 3 education loan fund up to two per cent of the total amount of
 
 4 loans outstanding for collection and administrative expenses.
 
 5 [In accordance with chapter 103D, the] The university may enter
 
 6 into written contracts with collection agencies for the purpose
 
 7 of collecting delinquent student loans.  All payments collected,
 
 8 exclusive of a collection agency's commissions, shall revert, and
 
 9 be credited, to the loan fund."
 
10      SECTION 51.  Section 306-2, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§306-2 Powers of the board.  In addition to the powers
 
13 which it now possesses, the board of regents shall have power to:
 
14      (1)  Construct and maintain university projects, including a
 
15           university project included or to be in a university
 
16           system;
 
17      (2)  Combine two or more university projects, now or
 
18           hereafter existing on any one or more of the areas of
 
19           any one or more of the educational institutions under
 
20           the control of or governed by the board, into a
 
21           university system or systems, and to maintain such
 
22           system or systems;
 
23      (3)  Prescribe and collect rents, fees and charges for the
 

 
Page 67                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           use of or services furnished by any university project
 
 2           or the facilities thereof;
 
 3      (4)  [With the approval of the governor, issue] Issue
 
 4           revenue bonds, to finance in whole or in part the cost
 
 5           of construction, or maintenance, or both, of any
 
 6           university project, including a university project
 
 7           included or to be included in a university system;
 
 8      (5)  Pledge to the punctual payment of such revenue bonds
 
 9           and interest thereon, the revenue of the university
 
10           project or projects for the construction or maintenance
 
11           of which the bonds have been issued, or the revenue of
 
12           the university system in which such university project
 
13           is to be included, and the revenue of other or all
 
14           university projects or university systems, in an amount
 
15           sufficient to pay such bonds and interest as the same
 
16           become due and to create and maintain reasonable
 
17           reserves therefor;
 
18      (6)  Advance such moneys of the university, not otherwise
 
19           required, as are necessary to pay the expenses incurred
 
20           in making the preparations for the initial issuance of
 
21           revenue bonds under this chapter, and to take any other
 
22           action necessary or proper for carrying into execution
 
23           and administering this chapter, including providing for
 

 
Page 68                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           the full utilization of university projects and
 
 2           university systems in every way conducive to the
 
 3           furtherance of any or all of the purposes of the
 
 4           university."
 
 5      SECTION 52.  Section 306-5, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§306-5 Covenants in resolution authorizing revenue bonds.
 
 8 Any resolution or resolutions authorizing the issuance of revenue
 
 9 bonds under this chapter may contain covenants as to:
 
10      (1)  The purpose or purposes to which the proceeds of the
 
11           sale of the revenue bonds may be applied; the use and
 
12           disposition of such proceeds; the investment thereof
 
13           pending such use and disposition; and the use and
 
14           disposition of the income from such investment;
 
15      (2)  The use and disposition of the revenue of the
 
16           university project or projects for the construction or
 
17           maintenance of which the revenue bonds are issued or of
 
18           the university system or systems in which such project
 
19           or projects are to be included; the use and disposition
 
20           of the revenue of all university projects and
 
21           university systems, and of the revenues of the
 
22           university, including the creation and maintenance of
 
23           reserves; the investment of such revenues and of the
 

 
Page 69                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           moneys in such reserves; and the use and disposition of
 
 2           the income from such investments;
 
 3      (3)  The minimum amount of revenues to be produced by the
 
 4           university projects or university systems, over and
 
 5           above the amount required to be produced by the first
 
 6           sentence and clauses (1) through (3) of the second
 
 7           sentence of section 306-9;
 
 8      (4)  The use and disposition of the proceeds of the sale of
 
 9           any university project or university system, or part of
 
10           either thereof;
 
11      (5)  The construction and maintenance of any university
 
12           project or university system other than the university
 
13           project or projects for the construction or maintenance
 
14           of which revenue bonds are issued or the university
 
15           system or systems in which such latter project or
 
16           projects are to be included;
 
17      (6)  The issuance of other or additional revenue bonds
 
18           payable either from the revenue of the university
 
19           project or projects for the construction or maintenance
 
20           of which the revenue bonds are issued or the revenue of
 
21           the university system or systems in which such project
 
22           or projects are to be included, or payable from the
 
23           revenue of other university projects or university
 

 
Page 70                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           systems;
 
 2      (7)  The maintenance of the university project or university
 
 3           system, including the creation by the board of regents
 
 4           of such supervisory positions, which shall not be
 
 5           subject to chapters 76 and 77, as are necessary to
 
 6           facilitate the issuance of revenue bonds by ensuring
 
 7           the adequacy of revenues;
 
 8      (8)  The insurance to be carried on university projects and
 
 9           university systems and the use and disposition of
 
10           insurance moneys;
 
11      (9)  Books of account and inspection and audit thereof;
 
12     (10)  A procedure by which the terms and conditions of the
 
13           bond resolution or indenture may be subsequently
 
14           amended or modified with the consent of the board, the
 
15           vote or written assent of the holders of bonds or any
 
16           proportion of the holder, or any trustee thereof; and
 
17     (11)  The terms and conditions upon which the holders of
 
18           bonds evidencing the obligation to repay loans, or any
 
19           proportion of the holders, or any trustee thereof,
 
20           shall be entitled to the appointment of a receiver by
 
21           any court of competent jurisdiction, which court shall
 
22           have jurisdiction in such proceedings, and which
 
23           receiver may enter and take possession of the
 

 
Page 71                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           university project or projects, or university system or
 
 2           systems, maintain them, prescribe rents, fees, and
 
 3           charges, and collect, receive, and apply all revenue
 
 4           thereafter arising therefrom in the same manner as the
 
 5           board itself might do, but the receiver shall have no
 
 6           power, nor be granted any power, to utilize, or permit
 
 7           the utilization of, any university project or
 
 8           university system other than in a manner consistent
 
 9           with and in furtherance of the purposes of the
 
10           university[; provided that all such covenants shall be
 
11           subject to review by the governor].
 
12      This chapter and any such resolution or resolutions shall be
 
13 a contract with the holders of bonds issued under this chapter,
 
14 and the duties of the board and any such resolution or
 
15 resolutions shall be enforceable by any bondholder by mandamus or
 
16 other appropriate suit, action, or proceeding in any court of
 
17 competent jurisdiction."
 
18      SECTION 53.  Section 306-13, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§306-13  Funding and refunding bonds; authorization and
 
21 purpose.  The board of regents may[, with the approval of the
 
22 governor,] provide for the issuance of revenue bonds (herein
 
23 referred to as refunding bonds) for the purpose of refunding,
 

 
Page 72                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 redeeming, or retiring at or at any time before maturity or at
 
 2 any time before the first date upon which the outstanding bonds
 
 3 to be refunded may be called for redemption, any bonds issued
 
 4 under this chapter, including any bonds which the holders may
 
 5 consent to be paid or refunded even though the bonds are not
 
 6 matured or are not callable or redeemable, and for the purpose of
 
 7 funding indebtedness not evidenced by revenue bonds but which was
 
 8 incurred for purposes for which revenue bonds may be issued
 
 9 pursuant to this chapter.  The rate or rates of interest borne by
 
10 the refunding bonds shall not be affected or limited by the rate
 
11 or rates of interest borne by the bonds to be refunded or the
 
12 indebtedness to be funded.  All provisions of this chapter
 
13 applicable to the issuance of revenue bonds shall be complied
 
14 with in the issuance of refunding bonds.  Refunding bonds shall
 
15 be sold as provided in section 306-4, or the board may, in its
 
16 discretion, provide for the exchange of refunding bonds for a
 
17 like principal amount of outstanding bonds for the refunding of
 
18 which the issuance of such refunding bonds has been authorized,
 
19 whether or not the interest rate on the refunding bonds is higher
 
20 than the interest rate on the bonds refunded thereby."
 
21      SECTION 54.  Section 661-12, Hawaii Revised Statutes, is
 
22 amended by amending subsection (f) to read as follows:
 
23      "(f)  As used in this section:
 

 
Page 73                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1      "Agency" means any state or county board, commission,
 
 2 department, or officer authorized by law to make rules or to
 
 3 adjudicate contested cases except those in the legislative or
 
 4 judicial branches[.] or the University of Hawaii.
 
 5      "Civil proceeding" means any proceeding other than a
 
 6 criminal proceeding or a proceeding before a family court.
 
 7      "Small business" means an independently owned business with
 
 8 less than fifty employees."
 
 9      SECTION 55.  Section 12 of Act 321, Session Laws of Hawaii
 
10 1986, as amended by section 69 of Act 283, Session Laws of Hawaii
 
11 1987, by section 7 of Act 371, Session Laws of Hawaii 1989, by
 
12 section 3 of Act 163, Session Laws of Hawaii 1991, by section 2
 
13 of Act 314, Session Laws of Hawaii 1993, by section 22 of Act 8,
 
14 Special Session Laws of Hawaii 1993, by section 1 of Act 180,
 
15 Session Laws of Hawaii 1997, and by section 24, Act 115, Session
 
16 Laws of Hawaii 1998, is amended to read as follows:
 
17      "SECTION 24.  Section 12 of Act 321, Session Laws of Hawaii
 
18 1986, as amended by section 69 of Act 283, Session Laws of Hawaii
 
19 1987, as amended by section 7 of Act 371, Session Laws of Hawaii
 
20 1989, as amended by section 3 of Act 163, Session Laws of Hawaii
 
21 1991, as amended by section 2 of Act 314, Session Laws of Hawaii
 
22 1993, as amended by section 22 of Act 8, Special Session Laws of
 
23 Hawaii 1993, and as amended by section 1 of Act 180, Session Laws
 

 
Page 74                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 of Hawaii 1997, is amended to read as follows:
 
 2      SECTION 12.  This Act shall take effect on July 1, 1986, and
 
 3 be repealed as of June 30, 2005; [provided that on repeal
 
 4 sections 40-1, 40-2, 40-4, 40-6, and 40-81, Hawaii Revised
 
 5 Statutes, are reenacted in the form in which they read on
 
 6 June 30, 1986, and section 40-58, Hawaii Revised Statutes, is
 
 7 reenacted in the form in which it read on June 30, 1991.]
 
 8 provided that:
 
 9      (1)  Section 3 of this Act is repealed on June 30, 2005;
 
10      (2)  Section 40-1(b), Hawaii Revised Statutes, is reenacted
 
11           in the form in which it read on June 30, 1986;
 
12      (3)  Sections 40-2, 40-6, and 40-81, Hawaii Revised
 
13           Statutes, are reenacted in the form in which they read
 
14           on June 30, 1986; and provided further that amendments
 
15           made by Act     , Session Laws of Hawaii 2000, shall
 
16           not be repealed;
 
17      (4)  Section 40-4, Hawaii Revised Statutes, is reenacted in
 
18           the form in which it read on June 30, 1986; and
 
19           provided further that the amendment made to that
 
20           section adding the University of Hawaii shall not be
 
21           repealed; and
 
22      (5)  Section 40-58, Hawaii Revised Statutes, is reenacted in
 
23           the form in which it read on June 30, 1991; and
 

 
Page 75                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1           provided further that amendments made by Act     ,
 
 2           Session Laws of Hawaii 2000, shall not be repealed."
 
 3      SECTION 56.  Section 26-11, Hawaii Revised Statutes, is
 
 4 repealed.
 
 5      ["§26-11  University of Hawaii.(a)  The University of
 
 6 Hawaii shall be headed by an executive board to be known as the
 
 7 board of regents.
 
 8      The board shall consist of twelve members.  No more than six
 
 9 of the members shall be members of the same political party and
 
10 at least part of the membership of the board shall represent
 
11 geographic subdivisions of the State.  At least one member shall
 
12 be a University of Hawaii student at the time of the initial
 
13 appointment.  This member may be reappointed for one additional
 
14 term even though the member may no longer be a student at the
 
15 time of reappointment.
 
16      The board shall have power, in accordance with the
 
17 Constitution of the State and with law, to formulate policy, and
 
18 to exercise control over the university through its executive
 
19 officer, the president of the university.  The board shall have
 
20 exclusive jurisdiction over the internal organization and
 
21 management of the university.
 
22      (b)  The board of regents shall appoint and may remove an
 
23 executive officer to be known as the president of the University
 

 
Page 76                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 of Hawaii.
 
 2      The University of Hawaii as heretofore constituted as a body
 
 3 corporate is continued as the University of Hawaii established by
 
 4 this chapter."]
 
 5      SECTION 57.  Except as modified in sections 22, 23, 24, 25,
 
 6 26, and 27 of this Act, no part of this Act shall contravene any
 
 7 part of chapters 76, 77, 89, Hawaii Revised Statutes, or any
 
 8 collective bargaining agreement that may have been or may be
 
 9 negotiated under chapter 89, Hawaii Revised Statutes.
 
10      SECTION 58.  No regular civil service employees who were
 
11 employed by the University of Hawaii before July 1, 2000, shall
 
12 lose their status or have their statutory rights and benefits
 
13 reduced as a result of this Act.
 
14      SECTION 59.  If any provision of this Act, or the
 
15 application thereof to any person or circumstances is held
 
16 invalid, the invalidity does not affect other provisions or
 
17 applications of the Act which can be given effect without the
 
18 invalid provision or application, and to this end the provisions
 
19 of this Act are severable.
 
20      SECTION 60.  Following approval of this Act, the revisor of
 
21 statutes shall insert the number of this Act in the blank spaces
 
22 in paragraphs (3) and (5) of section 55.
 
23      SECTION 61.  Statutory material to be repealed is bracketed.
 

 
Page 77                                                    
                                     S.B. NO.           2651
                                                        
                                                        

 
 1 New statutory material is underscored.
 
 2      SECTION 62.  This Act shall take effect on July 1, 2000.
 
 3 
 
 4                           INTRODUCED BY:  _______________________