Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Higher Education and Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1408 entitled:

beg leave to report as follows:

The purpose of this measure is to propose an amendment to article X, section 6, of the Constitution of the State of Hawaii to authorize the board of regents to issue general obligation bonds.

The Attorney General submitted comments on this measure.

Your Committees find that the University of Hawaii Board of Regents has been granted autonomy in the past that allows the Board of Regents to manage its own administration. In principle, although your Committees find the concept of authorizing the University of Hawaii to issue general obligation bonds appropriate, there are some concerns on the procedure and the legality of this proposition.

Your Committees find a need for more discussion regarding the Board of Regents' autonomy to issue general obligation bonds, and are passing out this measure to continue the discussion on this issue.

As affirmed by the records of votes of the members of your Committees on Higher Education and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1408 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.