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. 735 entitled:

begs leave to report as follows:

The purpose of this measure is to require that the Research Corporation of the University of Hawaii's annual report include an audited financial statement and the amount of payroll and other disbursements made during the year.

Due to the fact that the Research Corporation of the University of Hawaii receives public funds, it is important that the public and government officials are aware of exactly how those funds are spent. Therefore, your Committee supports the intent of this measure, which will allow the State to keep better track of the expenditures of the Research Corporation.

Your Committee made minor technical, nonsubstantive amendments to this measure for clarity and accuracy.

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. 735, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 735, S.D. 1, and be referred to the Committee on Ways and Means.