Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1411, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the University of Hawaii (University) to establish a risk management program and a risk management special fund.

Your Committee finds that the Legislature has increasingly looked to the University to become more autonomous in the management of its affairs. Since 2001, the Legislature has required the University to identify funds from its revenue sources to pay for settlements and judgments. But statutory authority allowing such payment was lacking. This bill provides that statutory authority to allow the University to implement its risk management program. The bill also establishes a risk management special fund to receive risk management related funds.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1411, S.D. 1, and recommends that it pass Third Reading.