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. 576 entitled:

begs leave to report as follows:

The purpose of this measure is to disallow the University of Hawaii Board of Regents from making expenditures from the University of Hawaii tuition and special fees fund to generate private donations to the University of Hawaii Foundation.

Testimony in opposition to this measure was submitted by the University of Hawaii and the University of Hawaii Foundation Board of Trustees.

In 1995, the Legislature passed Act 161, Session Laws of Hawaii 1995, which authorized the Board of Regents to manage tuition revenues generated for University of Hawaii programs. Concomitant with this authority, the Legislature then found, was the consideration that the University of Hawaii is a state-created and –supported institution, which must ensure equal access for students who may need financial support in order to gain a college education.

The 1995 Legislature believed, and your Committee agrees, that it is necessary to ensure that the State's higher education policy maintains a balance between providing increasing fiscal autonomy to the University and equal access to financially needy students. Your Committee believes that this measure will help to maintain that balance, as it will ensure that tuition revenues are used to fund programs to recruit and retain students from underrepresented ethnic groups and to fund student diversity programs.

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. 576 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.