Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 731, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the transfer of all University funds, with the exception of general funds, into the University of Hawaii Commercial Enterprises Revolving Fund to finance the establishment of new enterprises, and require an annual report to the Legislature on all transfers into the Fund and all expenditures from the Fund.

Your Committee heard testimony in support of the measure from the University of Hawaii.

Your Committee finds that allowing the University of Hawaii to transfer funds in the manner proposed by this measure will provide the university with the flexibility needed to capitalize on fleeting entrepreneurial opportunities. By fostering opportunities for the university to earn income separate from general revenue, scarce public resources can be conserved.

Your Committee amended the measure by deleting a reporting provision that was duplicative of preexisting reporting requirements.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 731, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 731, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.