[B
                                   STAND. COM. REP. NO. 3018

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2066
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committee on Education and Technology, to which was
referred H.B. No. 2066, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII
     FACILITIES USE REVOLVING FUND,"

begs leave to report as follows:

     The purpose of this measure is to expand and strengthen the
University of Hawaii's revenue base by authorizing the deposit of
revenues generated from University of Hawaii real property into
the facilities use revolving fund.

     Testimony in support of this measure was received from the
University of Hawai'i and Hawaii Association of Realtors.
Testimony in opposition to this measure was received from The
Associated Students of the University of Hawai'i at Manoa.

     Your Committee finds that the University intends to use its
assets, including real property, to expand entrepreneurial
activities and thereby generate increased revenues.  This measure
will provide the necessary fiscal vehicle to facilitate this
effort.

     Testimony raised concerns with respect to how this measure
affects ceded lands.  Your Committee notes that this measure does
not change the University's obligations with respect to ceded
lands.  Rather this measure is intended to provide a mechanism

 
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                                   STAND. COM. REP. NO. 3018
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for the University to use its real property.  In doing so, your
Committee expects the University to manage the land trust in an
appropriate manner and use unexpended funds for general
administration or overhead purposes.

     Upon further consideration, your Committee amended the
measure by:

     (1)  Adding a purpose section to clarify that this measure
          does not change ceded lands rights and obligations;

     (2)  With respect to the sale or lease of the University's
          real property, requiring the University to comply with
          all statutory and common law requirements in the
          disposition of ceded lands; and

     (3)  Changing the use of unexpended revenues or funds to
          administrative or overhead costs, instead of for the
          general benefit of the university.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2066, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2066, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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