STAND

STAND. COM. REP. NO. 324-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2547

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 2547 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

The purpose of this bill is to improve accountability over University of Hawaii (UH) moneys by:

(1) Granting restricted oversight to the Auditor over state moneys provided to the UH Foundation; and

(2) Requiring UH to submit an expanded report regarding moneys provided to the UH Foundation.

The Auditor submitted testimony in support of this bill. The UH and the UH Foundation opposed this bill.

Your Committee finds that while the UH Foundation provides valuable services to the UH, there is currently little oversight over moneys expended by the UH Foundation. This makes it difficult to determine that state moneys are being used for the purposes for which they were appropriated. This bill will ensure that the Auditor is provided with the necessary authority to audit the use of state moneys while preserving the privacy and, upon request, anonymity of donors.

Your Committee has amended this bill by:

(1) Allowing moneys from the Tuition and Fees Special Fund to be expended to:

(A) Promote alumni activities; and

(B) Enable the UH Foundation to maintain stewardship over state moneys under their control;

and

(2) Making technical, nonsubstantive changes for purposes of 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. 2547, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2547, 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