CONFERENCE COMMITTEE REPORT NO. 1

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2062
                                  H.D. 2
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2062, H.D. 2, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO HIGHER EDUCATION,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to allow the University of
Hawaii (UH) to manage its resources more flexibly.  More
specifically, this bill allows UH to carry over unexpended
general funds for one additional fiscal year to be applied to any
UH program.

     After careful consideration, your Committee on Conference
has amended this bill by:

     (1) Allowing UH to expend a sum equal to its end-of-the-
         fiscal-year faculty payroll from funds appropriated for
         the following fiscal year; and

 
 
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     (2) Making technical, nonsubstantive changes for style and
         clarity.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2062, H.D. 2, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2062, H.D. 2, S.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
DAVID Y. IGE, Co-Chair             K.MARK TAKAI, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
NORMAN SAKAMOTO, Co-Chair          EZRA R. KANOHO, Co-Chair