STAND. COM. REP. NO. 822-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2062
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2062, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide the University of
Hawaii (UH) with additional flexibility in managing its
resources.  This bill enables the UH, until June 30, 2002, to:

     (1)  Carry over unexpended general funds for operating
          purposes for one additional fiscal year; and

     (2)  Use these retained funds to supplement the
          appropriation for any program.

     This bill also exempts the UH from the provisions of section
37-42, Hawaii Revised Statutes, which requires departments to
limit expenditures of appropriated funds to allotment ceilings
established by the Governor for each department.

     The UH and the Hawaii Association of Realtors testified in
support of this measure.

     Your Committee has amended this bill by limiting the use of
retained funds to instructional programs.


 
 
 
 
                                 STAND. COM. REP. NO. 822-00
                                 Page 2

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

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair