CONFIDENTIAL – NOT FOR DISTRIBUTION 2011 Summary of Legislative Proposals Affecting the University of Hawai‘i Update as of 8:29am, February 23, 2011 Legislative Timetable February 24 thru March 2 – Mandatory 5-Day Recess March 4 – First Decking March 10 – First Crossover University of Hawai‘i Legislative Package Consolidation of Funds SB814 SD1 (Tokuda) UOH-01(11) RELATING TO CERTAIN FUNDS OF THE UNIVERSITY OF HAWAII Converts certain revolving funds of the University of Hawaii into special funds; repeals and amends certain funds of the University of Hawaii and transfers the remaining balances to the University of Hawaii auxiliary enterprises special fund. (SD1) ($) Effective Date: July 1, 2011 Lead: CFO Referral: EDU, WAM – WAM decision making on 2/25 at 9am HB1322 HD1 (Nishimoto) RELATING TO CERTAIN FUNDS OF THE UNIVERSITY OF HAWAII Converts certain revolving funds of the University of Hawaii into special funds; repeals certain funds of the University of Hawaii and transfers the remaining balances to specified alternate funds. (HB1322 HD1) Effective Date: July 1, 2011 Lead: CFO Referral: HED, FIN – FIN hearing on 2/24 at 12:30pm Revenue Bond Authorization UOH-02(11) SB809 (Tokuda) RELATING TO THE UNIVERSITY OF HAWAII HB1603 (Nishimoto) Increase by $100,000,000 the University of Hawaii's authorization to issue revenue bonds to a total principal amount not to exceed $300,000,000 for the purpose of financing the construction and maintenance of qualifying capital improvement projects. Appropriates $100,000,000 in revenue bond proceeds. ($) Effective Date: SB1331: upon approval SB809: July 1, 2011 Lead: CFO Referral: SB809 - EDU, WAM – WAM decision making on 2/25 at 9am HB1603 – HED, FIN – FIN hearing on 2/24 at 12:30pm Carryover Funds HB1325 HD1 (Nishimoto) UOH-03(11) RELATING TO THE UNIVERSITY OF HAWAII Allows the University of Hawaii to retain up to five per cent of its appropriated general funds and carry it over to the subsequent fiscal year. Requires reports to the Department of Budget and Finance and the Legislature. (HB1325 HD1) Effective Date: upon approval Lead: CFO -1- Referral: HED, FIN – HED passed HD1 on 2/10 SB238 SD1 (Tokuda) RELATING TO THE UNIVERSITY OF HAWAII Allows the University of Hawaii to retain up to five per cent of its appropriated general funds and carry it over to the subsequent fiscal year. Requires an annual report to the legislature on funds carried over to the subsequent fiscal year. (SD1) Effective Date: upon approval Lead: CFO Referral: EDU, WAM – WAM decision making on 2/25 at 9am Tobacco Settlement Funds UOH-04(11) SB239 SD1 (Tokuda) RELATING TO THE HAWAII TOBACCO SETTLEMENT SPECIAL FUND Extends the appropriation by a decreasing annual amount of a portion of Hawaii tobacco settlement special fund moneys for annual operating expenses of JABSOM until June 30, 2015. Increases the portion of Hawaii tobacco settlement special fund moneys going to the general fund until June 30, 2015; and adds annual reporting requirements for JABSOM. (SD1) ($) Effective Date: June 29, 2011, and shall be repealed on June 30, 2015; provided that section 328L-2, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of Act 264, Session Laws of Hawaii 2007. Lead: Mānoa Referral: EDU/HTH, WAM – WAM decision making on 2/25 at 9am HB1330 HD1 (Nishimoto) RELATING TO THE HAWAII TOBACCO SETTLEMENT SPECIAL FUND Extends the appropriation of a portion of Hawaii Tobacco Settlement Special Fund moneys for annual operating expenses of the John A. Burns School of Medicine until June 30, 2015, and adds annual reporting requirements. (HB1330 HD1) Effective Date: July 1, 2050. Lead: Mānoa Referral: HLT, HED, FIN – HED passed unamended on 2/15 Physician Workforce Assessment UOH-05(11) SB240 SD1 (Tokuda) RELATING TO PHYSICIAN WORKFORCE ASSESSMENT Permanently establishes the physician workforce assessment fee. Requires a portion of the assessment fees be deposited into the John A. Burns school of medicine special fund to support physician workforce assessment and planning, including recruitment and retention of physicians for rural and medically underserved areas of the State. Requires the University of Hawaii at Manoa to report annually to the legislature, the state health planning and development agency, and the Hawaii medical board. (SD1) ($) Effective Date: upon approval Lead: Mānoa Referral: EDU/HTH, WAM – WAM decision making on 2/25 at 9am -2- HB1203 HD1 (Yamane) RELATING TO PHYSICIAN WORKFORCE ASSESSMENT Makes the physician workforce assessment fee permanent. Specifies what excess funds from the workforce assessment fee shall be used for. (HB1203 HD1) Effective Date: upon approval Lead: Mānoa Referral: HLT, FIN – HLT passed HD1 on 2/8 Others Benchmarks SB244 (Tokuda) HB1326 HD1 (Nishimoto) Board of Regents HB1327 HD1 (Nishimoto) SB1386 SD1 (Tokuda) RELATING TO THE UNIVERSITY OF HAWAII Amends provisions relating to benchmark reporting. Requires the University of Hawaii to periodically review state needs related to higher education outcomes and indicators and monitor and report biennially on its progress toward achieving performance outcomes in a manner that is transparent and linked to state higher education needs. Effective Date: upon approval Lead: EVPAAP Referral: HED, FIN RELATING TO THE UNIVERSITY OF HAWAII Requires the University of Hawaii Board of Regents to periodically review the priority guidelines for quality education and recommend amendments to the Legislature, develop a functional plan that includes strategic goals, outcomes, and performance indicators, and report biennially to the Legislature. (HB1326 HD1) Effective Date: upon approval Lead: EVPAAP Referral: HED, FIN – HED passed HD1 on 2/15 RELATING TO THE BOARD OF REGENTS OF THE UNIVERSITY OF HAWAII Allows for the election of up to two vice-chairpersons of the University of Hawaii board of regents and requires the board to elect any vice-chairperson and chairperson at a meeting held before July 1. Amends the start date of the term of a board chairperson and vice-chairperson. Makes housekeeping amendments to Board of Regents statutes. (HB1327 HD1) Effective Date: upon approval Lead: BOR Referral: HED, FIN – FIN hearing on 2/24 at 12:30pm RELATING TO THE BOARD OF REGENTS OF THE UNIVERSITY OF HAWAII Allows for the election of up to two vice-chairpersons of the University of Hawaii board of regents and requires the board to elect any vice-chairperson and chairperson at a meeting held before July 1. Clarifies the start dates of the terms of a board chairperson and vice-chairperson. (SD1) Effective Date: upon approval Lead: BOR Referral: HED, FIN -3- Education Commission SB1382 SD1 (Tokuda) Procurement SB1332 SD1 (Tsutsui) Reporting/Kuali SB1331 SD1 (Tokuda) Report Repeal SB242 (Tokuda) RELATING TO EDUCATION Creates a task force to examine the Higher Education Act of 1965, as amended, and regulations pursuant to that Act, make recommendations to ensure the State's compliance with provisions relating to the state authorization of institutions that offer educational programs beyond secondary education, and make recommendations as to whether existing functions relating to the licensing or authorization of any educational institutions in the State, and administrators and instructors thereof, should be consolidated and tasked to one state agency that would be responsible for the licensing and authorization of all educational institutions in the State and their related operations. Requires the task force to report to the legislature. Requires the legislative reference bureau to provide research and administrative support to the task force. (SD1) Effective Date: upon approval Lead: EVPAAP/SA Referral: EDU, WAM – EDU passed SD1 on 2/14 RELATING TO THE UNIVERSITY OF HAWAII Extends the exemption granted to the University of Hawaii from certain provisions of the Hawaii public procurement code to July 1, 2015. Requires additional reporting to the legislature. (SD1) Effective Date: upon approval Lead: CFO Re-referred: EDU, PGM – EDU passed SD1 on 2/14 RELATING TO THE UNIVERSITY OF HAWAII Amends section 304A-2007(b), HRS, to require additional reporting until 6/30/2016 by the University of Hawaii on special and revolving funds that carry an unencumbered cash balance of $1,000,000 or more or a cash deficit of $1,000,000 or more, at the end of the previous fiscal year, where that balance or deficit is greater than twenty-five per cent of the previous fiscal year's expenditures. Makes an appropriation to the University of Hawaii to complete and implement the Kuali financial system. (SD1) Effective Date: upon its approval; provided that section 2 shall take effect on July 1, 2011; and provided further that section 1 shall be repealed on June 30, 2016, and section 304A-2007(b), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval of this Act. Lead: CFO Referral: EDU, WAM – WAM decision making on 2/25 at 9am RELATING TO THE UNIVERSITY OF HAWAII Repeals certain UH reports to the legislature. Makes western regional education compact report to legislature biennial, to be submitted in each odd-numbered year. Repeals section 2, Act -4- 188, Session Laws of Hawaii 2008, relating to annual incentive and performance reports. ($) Effective Date: July 1, 2011 Lead: EVPAAP Referral: EDU, WAM – WAM decision making on 2/25 at 9am WICHE HB1323 HD1 (Nishimoto) SB243 SD1 (Tokuda) RELATING TO THE WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION Establishes the Hawaii Western Interstate Commission of Higher Education (Hawaii WICHE). Allows Hawaii WICHE to establish a repayment policy for students who receive financial support from certain funds appropriated for the Hawaii commission. Establishes a professional student exchange program special fund. (HB1323 HD1) Effective Date: July 1, 2050 Lead: SA Referral: HED, FIN – FIN hearing on 2/24 at 12:30pm RELATING TO THE WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION Establishes the Hawaii Western Interstate Commission of Higher Education (Hawaii WICHE). Allows Hawaii WICHE to establish a repayment policy for students who receive financial support from certain funds appropriated for the Hawaii commission. Establishes a professional student exchange program special fund. (SD1) ($) Effective Date: upon approval Lead: SA Referral: EDU, WAM – WAM decision making on 2/25 at 9am Bills of Interest Board of Regents SB1512 (Wakai) RELATING TO THE UNIVERSITY OF HAWAII Reduces the minimum number of required annual meetings of the UH board of regents. Effective Date: upon approval Lead: BOR Referral: EDU Digital Media Enterprise Zones SB1132 SD1 (Gabbard) RELATING TO DIGITAL MEDIA Establishes digital media enterprise subzones as unspecified geographic areas surrounding University of Hawaii campuses that are also designated as enterprise zones. Establishes tax benefits for digital media businesses that employ Hawaii residents. Effective 7/1/2050. Repeals the digital media enterprise subzone and related development tax credit on 6/30/2021. (SD1) ($) Effective Date: July 1, 2050; provided that: (1) Sections 2 and 3 shall be repealed on June 30, 2021; (2) Section 6 shall be effective until June 30, 2021; and (3) Section 7 shall take effect on July 1, 2021 -5- Lead: EVPAAP Referral: EDT/EDU, WAM – EDT/EDU passed SD1 on 2/11 SB1133 SD1 (Gabbard) Funding HB79 (Choy) RELATING TO DIGITAL MEDIA Establishes digital media enterprise subzones as unspecified geographic areas surrounding University of Hawaii campuses that are also designated as enterprise zones. Establishes tax benefits for digital media infrastructure development and operation. Repeals digital media enterprise subzones and the related infrastructure tax credit on 6/30/2021. (SD1) ($) Effective Date: July 1, 2050; provided that: (1) Sections 2, 3, and 4 shall be repealed on June 30, 2021; (2) Section 7 shall be effective until June 30, 2021; and (3) Section 8 shall take effect on July 1, 2021. Lead: EVPAAP Referral: EDT/EDU, WAM – EDT/EDU passed SD1 on 2/11 RELATING TO STATE FUNDS Repeals, terminates, or closes certain revolving and trust funds. Establishes provisions for automatic repeal of certain special and revolving funds beginning on 6/30/12. Effective Date: upon approval Lead: CFO Referral: FIN – FIN deferred SB120 (Solomon) RELATING TO STATE FUNDS Repeals certain special funds and transfers balances to the state general fund. ($) Effective Date: July 1, 2011 Lead: CFO Referral: WAM – WAM deferred SB1419 (Kouchi) RELATING TO FUNDS Establishes provisions for automatic repeal of certain special and revolving funds beginning on June 30, 2011. Makes clarifying amendments to provisions pertaining to new special or revolving funds. Effective Date: July 1, 2011 Lead: CFO Referral: WAM HB1457 (Chong) RELATING TO HIGHER EDUCATION Requires the University of Hawaii to report annually to the Director of Finance the number of students in the previous academic year who attended and were in excess of the necessary credits for graduation or prior to declaring a major. Authorizes the Director of Finance to assess and transfer the costs. Effective Date: upon approval Lead: EVPAAP Referral: HED, FIN – FIN hearing on 2/24 at 12:30pm -6- Security Breach SB1162 (Fukunaga) RELATING TO SECURITY BREACHES OF PERSONAL INFORMATION Requires government agencies to develop mandatory training programs for agency personnel to whom disclosures of personal information are made or to whom access to the personal information may be granted; in the event of a government security breach, requires the government agency to be responsible for the cost of credit report or credit monitoring services any individual affected by the breach for two years following the discovery of the security breach; requires reports of security breaches to be submitted to the information privacy and security council; requires the council to be responsible for coordination of the implementation of guidelines by government agencies; makes the comptroller or state chief information office chair of the council; authorizes the information and communication services division to provide training; appropriates funds for the council. ($) Effective Date: July 1, 2011 Lead: CIO/UGC Referral: EDT/JDL, WAM – EDT/JDL passed SD1 HB1220 HD1 (Takai) RELATING TO INFORMATION PRIVACY Requires a business or government entity to implement a security program. Provides increased damages for a victim who, as a result of an information security breach provided by an entity without a security program, suffers harm from identity theft. Amends the type of notice that must be given to a person affected by a security breach. Defines identity theft. (HB1220 HD1). Effective Date: January 1, 2050 Lead: CIO/UGC Referral: CPC/JUD, FIN – CPC/JUD passed HD1 on 2/14 HB678 HD2 (Ito) RELATING TO INFORMATION Requires any government agency responsible for a security breach to pay for the costs of providing each person whose personal information was disclosed with, at a minimum, a threeyear subscription to a nationwide consumer reporting agency's services. (HB678 HD2) Effective Date: upon approval Lead: CIO/UGC Referral: ERB, CPC, FIN – CPC passed HD2 on 2/14 SB796 SD1 (Ige) RELATING TO INFORMATION Requires a business that maintains personal information about residents of Hawaii to implement a comprehensive written information security program; exempts financial institutions subject to certain federal guidelines; requires that a consumer credit reporting agency not charge a victim of identity theft or a security breach a fee for placing, lifting, or removing a security freeze on a credit report. (SD1) Effective Date: upon approval Lead: CIO/UGC Referral: EDT/CPN/JDL, WAM – WAM decision making on 2/25 at 9am -7- Resolutions of Interest HCR28 (Nishimoto) REQUESTING A FINANCIAL AUDIT OF THE SPECIAL FUNDS ADMINISTERED BY THE UNIVERSITY OF HAWAII. Lead: CFO Referral: HED, LMG, FIN HCR50/HR43 (Takai) REQUESTING THE UNIVERSITY OF HAWAII BOARD OF REGENTS TO STUDY THE REINTEGRATION OF THE OFFICE OF THE CHANCELLOR OF THE UNIVERSITY OF HAWAII AT MANOA WITH THE OFFICE OF THE PRESIDENT OF THE UNIVERSITY OF HAWAII SYSTEM. Lead: BOR Referral: HED, FIN -8-