Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 1206, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to allow the University of Hawaii (UH) more flexibility in managing its 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) for a period of two years.

UH submitted testimony 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:

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1206, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1206, S.D. 1, H.D. 1, and be referred to the Committee on Finance.