STAND. COM. REP. NO. 2041

Honolulu, Hawaii

RE:    S.B. No. 3127

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Education, to which was referred S.B. No. 3127 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to increase the sources of revenue available to support the Cancer Research Center of Hawaii and to allow moneys in the Hawaii Cancer Research Special Fund to also be used for capital expenditures.

     Testimony in support of the measure was submitted by the University of Hawaii System.

     Your Committee finds that, pursuant to Act 316, Session Laws of Hawaii 2006, the Legislature established the Hawaii Cancer Research Special Fund to fund the Cancer Research Center of Hawaii's research and operating expenses through moneys received from an increased tax on cigarettes.  Aside from the interest earned or accrued from moneys in the special fund, no other funding source exists to support the Cancer Research Center of Hawaii's operations.  Increased funds are also needed to support the Cancer Research Center of Hawaii's capital expenditures.  This measure authorizes the use of moneys in the special funds for research and operating expenses, as well as capital expenditures, and provides additional moneys to the special fund through the receipt of fees, charges, or other moneys received in conjunction with Cancer Research Center of Hawaii programs.  Your Committee supports the supplementation of funding for the Cancer Research Center of Hawaii and believes that such increase will assist the Center in its challenge to maintain financial self-sufficiency.

     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. 3127 and recommends that it pass Second Reading and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Education,

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NORMAN SAKAMOTO, Chair