STAND. COM. REP. NO.  1231-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2385

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2385, S.D. 1, 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 give the University of Hawaii (UH) the following forms of fiscal autonomy from the Comptroller beyond June 30, 2011, by:

     (1)  Exempting UH from the executive agencies over which the Comptroller has complete account supervision;

     (2)  Allowing UH to install an accounting system designed for colleges and universities, instead of the system used by other state agencies;

     (3)  Allowing UH to develop new and change existing business and accounting forms, without the prior approval of the Comptroller, except forms of statewide use in the State's accounting system; and

     (4)  Allowing UH's chief financial officer, instead of the Comptroller, to approve the assignment of debt by UH's creditors.

     This bill also, on a permanent basis, gives the Comptroller access to certain UH fiscal matters by:

     (1)  Authorizing the Comptroller to request UH to provide information necessary for the Comptroller to prepare required financial statements; and

     (2)  Requiring UH to report to the Comptroller within 15 days after each quarter, all transactions relating to moneys held outside of the state treasury.

     UH testified in support of this bill.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2385, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2385, S.D. 1, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair