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 S.B. No. 576 entitled:

begs leave to report as follows:

The purpose of this bill is to prohibit the University of Hawaii (UH) from making expenditures from the UH Tuition and Fees Special Fund (UH Special Fund) to generate private donations to the University of Hawaii Foundation (UH Foundation).

UH, the UH Foundation, and an individual submitted testimony in opposition to this bill.

Your Committee finds that there are concerns regarding the use of public funds by UH to generate public donations through the UH Foundation, a nonprofit organization that coordinates many fundraising functions and manages an endowment for UH. However, your Committee also notes that the efforts of the UH Foundation are critical to UH's ability to generate funds and operate effectively.

Accordingly, your Committee has amended this bill 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. 576, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 576, H.D. 1, and be referred to the Committee on Finance.