STAND

STAND. COM. REP. 35

Honolulu, Hawaii

, 2003

RE: H.B. No. 316

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 316 entitled:

"A BILL FOR AN ACT RELATING TO UNIVERSITY PROJECTS AND PURPOSES,"

begs leave to report as follows:

The purpose of this bill is to allow the University of Hawaii (UH) more flexibility in managing and financing UH projects.

UH submitted testimony in support of this bill. The Department of Budget and Finance submitted testimony in opposition to this bill.

Your Committee finds that this bill will further enhance autonomy for UH by expanding its control over capital projects and other UH programs. However, as UH is an agency of the State and receives a significant amount of general funds, there need to be limits placed on certain aspects of this bill, particularly with regard to UH's ability to issue revenue bonds.

Upon further consideration, your Committee has amended this bill by deleting its contents and inserting the contents of H.B. No. 1238 which is substantially similar to this bill. As amended, this bill also:

(1) Reduces the Board of Regents' flexibility in constructing and maintaining an UH project by deleting the specification that UH does not need to obtain further authorization;

(2) Requires revenue bonds issued by UH to be authorized by the Governor; and

(3) Deletes the power of the Board of Regents to establish a loan program from UH revenues.

Your Committee has further amended this bill by:

(1) Limiting the aggregate outstanding amount of revenue bonds that may be issued by UH to $20,000,000; and

(2) Making technical, nonsubstantive changes for style and clarity.

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 H.B. No. 316, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 316, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

		____________________________ K. MARK TAKAI, Chair