Bill Text: HI SB1393 | 2021 | Regular Session | Introduced


Bill Title: Relating To The Research Corporation Of The University Of Hawaii.

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Introduced - Dead) 2021-02-16 - The committee on HRE deferred the measure. [SB1393 Detail]

Download: Hawaii-2021-SB1393-Introduced.html

THE SENATE

S.B. NO.

1393

THIRTY-FIRST LEGISLATURE, 2021

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO the research corporation of the university of hawaii.

 

 

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

 


     SECTION 1.  The legislature finds that the research corporation of the University of Hawaii (research corporation) is a state agency attached to the University of Hawaii for administrative purposes.  The research corporation was established by the legislature in 1965 to assist the University of Hawaii in hiring employees and procuring goods and services in a rapid and efficient manner to timely facilitate the University of Hawaii's extramurally funded research and training grants and contracts.  In order to provide this responsiveness and flexibility, the legislature exempted the research corporation from certain state personnel and procurement laws, which would otherwise undermine the University of Hawaii's competitiveness among research universities.

     The legislature further finds that the University of Hawaii's faculty are the stewards of the extramural funds and are responsible for the technical work under the grants and contracts and day-to-day management of the projects.  The research corporation does not receive any state general funds, but instead its operations are funded through the assessment of a service fee to process personnel and procurement transactions.  Currently, the research corporation charges the University of Hawaii certain management fees for programs based on an agreed upon formula.  These programs include the University of Hawaii's extramural programs, which make up the largest portion of the research corporation's business, followed by the University of Hawaii's intramural programs, revolving fund account, and direct projects.

     The legislature further finds that the growth in the operating costs has impacted the service fee for the University of Hawaii's extramurally funded grants and contracts.  Although the research corporation is administratively attached to the University of Hawaii, the University of Hawaii has no authority or control over the research corporation's operating costs, which have grown over the past five years.  The legislature further finds that it is important to set a limit on the amount that the research corporation charges the University of Hawaii for its management fees and other related support services.

     Accordingly, it is the purpose of this Act to place a cap on all management fees and support services charged to the University of Hawaii by the research corporation.

     SECTION 2.  Section 304A-112, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-112[]]  Contracts for services provided by the research corporation of the University of Hawaii.  (a)  Notwithstanding any law to the contrary, when the university determines that neither the university nor another state agency can more effectively or efficiently accomplish the purposes of the sponsored research and training activities, the university shall contract with the research corporation of the University of Hawaii established under section [[]304A-3001[]] to provide management and other services as described in subsection (b) to support the university's research and training activities.  Contracts by the university with the research corporation pursuant to this section shall be limited to sponsored research and training projects; except that university projects supported by funds appropriated by the legislature may also be contracted to the research corporation pursuant to rules adopted by the board of regents.

     (b)  Management and other support services provided by the research corporation pursuant to this section may include:

     (1)  The procurement of goods and services;

     (2)  Employment of personnel; and

     (3)  The provision of advance funding for research and training contracts and grants[.];

provided that the total amount of fees charged by the research corporation for management and support services shall not exceed $          .  These services may be provided by the corporation to the university without regard to chapter 76, 78, 89, or 103D.

     (c)  A university contract to obtain management and other services from the research corporation of the University of Hawaii to support research and training as permitted under subsections (a) and (b) shall not exceed $           annually, excluding in kind services.  The university shall use funds only from the research and training revolving fund established under section 304A-2253 for such contracts.  The fund ceiling and source limitations of this subsection shall not apply to a university contract with the research corporation of the University of Hawaii for a university project expressly authorized and supported by funds appropriated by the legislature and  made pursuant to rules adopted by the board of regents."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Research Corporation of the University of Hawaii; University of Hawaii; Cap on Management Fees

 

Description:

Places an unspecified cap on the management fees the research corporation of the University of Hawaii charges the University of Hawaii to support research and training.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

feedback