STAND

STAND. COM. REP. NO.326

Honolulu, Hawaii

, 2003

RE: S.B. No. 1411

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 1411 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII RISK MANAGEMENT SPECIAL FUND,"

begs leave to report as follows:

The purpose of this measure is to establish the University of Hawaii risk management special fund.

Testimony in support of this measure was submitted by the University of Hawaii.

Your Committee finds that beginning in 2001, the University of Hawaii was instructed by the Legislature to pay for its own legal claims and settlements from its own revenue sources. Your Committee further finds that after evaluating the cost of various insurance policies, the University has determined that it would be more cost-effective to establish a risk management fund and assume the responsibility for managing its risk exposures.

Your Committee has amended this measure by:

(1) Deleting the designation of the special fund as being part of the State treasury;

(2) Clarifying that the risk management assessments to be deposited in the fund are those assessed against any funds of the University;

(3) Deleting the provision that prohibits general funds from being transferred into the special fund;

(4) Allowing the special fund revenues to be used for administration and operation of the risk management fund; and

(5) Making technical, nonsubstantive changes for the purposes of clarity and style.

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 S.B. No. 1411, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1411, S.D. 1, and be referred to the Committee on Ways and Means.

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

		____________________________ NORMAN SAKAMOTO, Chair