  {"id":144962,"date":"2021-07-13T10:42:30","date_gmt":"2021-07-13T20:42:30","guid":{"rendered":"https:\/\/www.hawaii.edu\/news\/?p=144962"},"modified":"2021-07-13T10:42:30","modified_gmt":"2021-07-13T20:42:30","slug":"2021-special-legislative-session-update","status":"publish","type":"post","link":"https:\/\/www.hawaii.edu\/news\/2021\/07\/13\/2021-special-legislative-session-update\/","title":{"rendered":"Update on 2021 special legislative session"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2020\/03\/hawaii-state-capitol.jpg\" alt=\"Hawaii state capitol\" width=\"676\" height=\"381\" class=\"alignleft size-full wp-image-113030\" srcset=\"https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2020\/03\/hawaii-state-capitol.jpg 676w, https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2020\/03\/hawaii-state-capitol-300x169.jpg 300w, https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2020\/03\/hawaii-state-capitol-130x73.jpg 130w\" sizes=\"auto, (max-width: 676px) 100vw, 676px\" \/><\/p>\n<figure id=\"attachment_30020\" aria-describedby=\"caption-attachment-30020\" style=\"width: 186px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2014\/12\/young-k-186x260.jpg\" alt=\"\" width=\"186\" height=\"260\" class=\"size-medium wp-image-30020\" srcset=\"https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2014\/12\/young-k-186x260.jpg 186w, https:\/\/www.hawaii.edu\/news\/wp-content\/uploads\/2014\/12\/young-k.jpg 250w\" sizes=\"auto, (max-width: 186px) 100vw, 186px\" \/><figcaption id=\"caption-attachment-30020\" class=\"wp-caption-text\">Kalbert Young<\/figcaption><\/figure>\n<p><em><strong>Kalbert Young<\/strong>, University of <span aria-label=\"Hawaii\">Âé¶¹´«Ã½<\/span> vice president for budget and finance and chief financial officer, shares his analysis of the 2021 legislative session to date.<\/em><\/p>\n<p>The <span aria-label=\"Hawaii\">Âé¶¹´«Ã½<\/span> State Legislature held a special legislative session in early July to consider overriding and\/or amending 27 bills vetoed by Gov. David Ige. Three of those bills significantly impact the University of <span aria-label=\"Hawaii\">Âé¶¹´«Ã½<\/span>.<\/p>\n<p>The first is <abbr>SB589<\/abbr> <abbr>CD1<\/abbr>, which was ultimately amended and passed during the special session. As I discussed in my <a href=\"https:\/\/www.hawaii.edu\/news\/2021\/05\/06\/2021-legislative-recap\/\">May legislative recap of the 2021 legislative session<\/a>, <abbr>SB589<\/abbr> <abbr>CD1<\/abbr> is complex because it contains several parts, unrelated to each other, that affect aspects of university operations.<\/p>\n<p><abbr title=\"University of Hawaii\">UH<\/abbr> leadership continues to have reservations with the amended version (<abbr>SB589<\/abbr> <abbr>AD1<\/abbr>), especially regarding the <abbr>UH<\/abbr> Cancer Center and John A. Burns School of Medicine (<abbr>JABSOM<\/abbr>). With that said, we feel that collaborative efforts between <abbr>UH<\/abbr> staff and elements of the Legislature have resulted in a bill that largely addressed the concerns of both sides. Here are the updated components of the bill:<\/p>\n<ul>\n<li>Requires the <abbr>UH<\/abbr> Cancer Center to be administratively affiliated with <abbr>JABSOM<\/abbr> and may be merged to achieve greater efficiency. The restrictions on the Tuition and Fees Special Fund and the Research and Training Revolving Fund were removed.<\/li>\n<li>Requires <abbr>UH<\/abbr> to develop a plan for <abbr>JABSOM<\/abbr> and <abbr>UH<\/abbr> Cancer Center to achieve greater operational efficiencies.<\/li>\n<li>Extends the sunset of Act 38, <abbr>SLH<\/abbr> 2017, exempting <abbr>UH<\/abbr>&#8216;s technology transfer activities from certain provisions of the state ethics code to June 30, 2024.<\/li>\n<li>Restores temporarily the provisions of Act 39, <abbr>SLH<\/abbr> 2017, reestablishing <abbr>UH<\/abbr>&#8216;s innovation and commercialization initiative program to June 30, 2024 and prohibits program activities in which <abbr>UH<\/abbr> employees have a conflict of interest.<\/li>\n<li>Reenacts temporarily the changes made by Act 42, <abbr>SLH<\/abbr> 2018, allowing the <abbr>UH<\/abbr> president to act as <abbr>UH<\/abbr>&#8216;s chief procurement officer for procurement contracts for construction and professional services under chapter 103D, HRS, until June 30, 2024.<\/li>\n<\/ul>\n<p>The technology transfer and innovation and commercialization initiative program were top priorities for <abbr>UH<\/abbr> this legislative session and our efforts to develop alternative revenue streams. The procurement authority was also a priority as it provides greater efficiency when it comes to managing and completing capital improvement projects.<\/p>\n<p>The second <abbr>UH<\/abbr> related bill is HB1299 <abbr>CD1<\/abbr> that would repeal various non-general funds\u2014including some <abbr>UH<\/abbr> funds\u2014and transfer any unencumbered balances to the general fund. During the special session, the legislature did amend and passed the bill (HB1299 <abbr>AD1<\/abbr>) but unfortunately the <abbr>UH<\/abbr> funds remained in the measure.<\/p>\n<p>The governor has until July 22, 2021, to sign both bills into law. If he does not, the vetoes would remain.<\/p>\n<p>The third and final bill related to <abbr>UH<\/abbr> is HB1296 <abbr>CD1<\/abbr>, which was ultimately vetoed as the legislature did not vote to override. The bill would have, among other things, ceased the deposit of <span aria-label=\"Hawaii\">Âé¶¹´«Ã½<\/span> Tobacco Settlement Fund money into the University Revenue-Undertakings fund on July 1, 2033, and required <abbr>UH<\/abbr> to pay for the fringe benefit costs for non-general funded positions. The fringe benefit component alone could have cost <abbr>UH<\/abbr> an estimated $15 million more a year. That would have been on top of the roughly 9&#37; budget reduction, or about $45 million in each of the next two fiscal years, that the <abbr>UH<\/abbr> System received during the regular legislative session.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kalbert Young, <abbr>UH<\/abbr> vice president for budget and finance and <abbr title=\"chief financial officer\">CFO<\/abbr>, shares his analysis of the 2021 legislative session to 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