[§304A-2257]  University of Hawaii studentactivities revolving fund.  (a)  There is established the University ofHawaii student activities revolving fund into which shall be deposited allfunds assessed as compulsory student activity fees and collected by theUniversity of Hawaii on behalf of chartered student organizations and studentactivity programs of the several campuses of the University of Hawaii system. All revenues received by chartered student organizations and student activityprograms from student activities and programs, except those revenues to whichother special funds have prior claim, shall also be deposited into therevolving fund.

(b)  Separate accounts shall be maintained foreach chartered student organization and student activity program.  Funds fromthe accounts may be withdrawn and expended by each respective chartered studentorganization or student activity program for any purpose that it deemsnecessary and proper to carry out and achieve its educational responsibilities,programs, and related activities; provided that approval for the expenditure isfirst obtained from the board of regents or its designated representative,except that approval is not required for expenditures for the purchase offlowers, leis, food, refreshments, and prizes if the purchases do not exceed anamount determined by policies adopted by the board of regents; and providedfurther that the amount shall not exceed the funds available to any charteredstudent organization or student activity program annually.

(c)  Other laws to the contrarynotwithstanding, any chartered student organization may be permitted towithdraw and expend funds from the special accounts to employ or retain, bycontract or otherwise, an attorney or attorneys only for the purpose ofdefending such organization in any litigation.  Any chartered studentorganization specifically organized to provide student publications orbroadcast communications may also be permitted to withdraw and expend fundsfrom the special accounts to employ or retain, by contract or otherwise, anattorney for the purpose of rendering legal advice to avoid lawsuits.  Theexpenditures in this subsection shall be approved by, and in accordance withpolicies adopted by, the board of regents.  No funds expended under thissubsection may be used to defend chartered student organizations for any wilfulor malicious act or to pay for any claim for loss or damage arising from theactivities of the chartered student organizations, including costs, expenses,and liabilities incurred in connection with any claim or proceeding broughtagainst a chartered student organization for damages resulting from the act oromission of a chartered student organization or any member thereof.  All moneysreceived for the University of Hawaii student activities revolving fund shallbe deposited in a depository maintained by the university in accordance withpolicies that shall be adopted by the board of regents. [L 2006, c 75, pt of§2]