SB3229 amends Hawaii law governing the University of Hawaii Tuition and Fees Special Fund. The bill authorizes the University of Hawaii Board of Regents to spend up to $3 million per year from the fund, excluding in-kind services, to support alumni relations, conduct donor evaluations, and generate private donations for the University of Hawaii Foundation for university purposes. The measure states that these expenditures are for a public purpose and are exempt from several state procurement and contracting chapters, including chapters 42F, 103, 103D, and 103F.
The bill also expands the university’s reporting obligations to the Legislature. The required annual report must now include detailed information on each University of Hawaii Foundation department supported by the fund, the activities and fundraising role of those departments, expenditures by category, transfers to university funds and their justification, a financial summary of the foundation’s operations, all expenditures from the support fund, and any donor evaluations paid for with fund moneys. The act takes effect upon approval.
Impact
SB3229 directly amends section 304A-2153, Hawaii Revised Statutes, by broadening the permissible uses of the University of Hawaii Tuition and Fees Special Fund and adding a specific authorization for donor evaluations. It also reinforces legislative oversight by requiring more detailed annual reporting on how the fund is used and how foundation-supported activities benefit the university. The bill affects the University of Hawaii, the University of Hawaii Foundation, and the Board of Regents, while carving these expenditures out from several general state procurement and purchasing requirements.
Sentiment
The bill appears to have been broadly supported throughout the legislative process, with unanimous or near-unanimous votes in the committees and conference process. The final version was enacted as Act 117, indicating overall legislative approval of the measure. The available record does not show recorded opposition or extensive debate, suggesting the proposal was viewed as a targeted administrative and fundraising-related change rather than a controversial policy shift.
Contention
The main policy issue is the use of tuition and fees special fund dollars for donor evaluations and fundraising-related activities, which could raise concerns about whether student-derived funds should support advancement operations instead of direct educational services. Another potential point of concern is the exemption from chapters 42F, 103, 103D, and 103F, which removes these expenditures from certain standard state procurement and contracting rules. The bill addresses accountability concerns by requiring a more detailed report to the Legislature, including disclosure of donor evaluations and foundation expenditures.