Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 731 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the University of Hawaii (UH) the flexibility in managing its own resources by allowing UH to transfer all UH funds, with the exception of general funds, into the University of Hawaii Commercial Enterprises Revolving Fund (Revolving Fund).

The UH testified in support of this bill.

Your Committee finds that this measure will allow the Revolving Fund to finance new commercial enterprises that will generate revenues to increase UH's fiscal self-sufficiency. However, while your Committee supports the goal of allowing UH greater flexibility with regard to managing its own resources, your Committee finds that the Legislature must at same time ensure accountability.

Therefore, your Committee has amended this measure by:

(1) Including a requirement that the University provide an

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. 731, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 731, H.D. 1.