Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 948 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Regents of the University of Hawaii to enter into contracts with private entities for the construction of facilities, university projects, and university systems, particularly to expedite the construction of a four-year West Oahu campus, a new cancer research center, and additional student housing at the Manoa campus.

Your Committee received testimony in support of the measure from University of Hawaii, University of Hawaii Professional Assembly, and University of Hawaii Capital Improvement Projects Department. The Hawaii Government Employees Association Bargaining Unit 8 supported the intent of the measure but raised concerns regarding privatization.

Your Committee finds that having the University of Hawaii Board of Regents enter into contracts with private partnerships needs additional discussion. In particular, your Committee is concerned about state liability for potential breaches of contracts by the Board of Regents, open and honest negotiations with private vendors at a public hearing, and whether or not the Board of Regents' efforts would lead to privatization of government services.

Your Committee has amended the bill by changing the effective date from upon approval to July 1, 2020, to allow time for further discussion.

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. 948, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 948, S.D. 1, and be referred to the Committee on Ways and Means.