STAND. COM. REP. NO. 706

Honolulu, Hawaii

RE:    S.B. No. 1388

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1388, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to amend the membership of the Board of Directors of the Research Corporation of the University of Hawaii, including reducing its membership from ten to eight members.

In addition, this measure:

     (1)  Provides that the Research Corporation's exemption from procurement requirements shall not apply to construction contracts above an unspecified value;

     (2)  Authorizes the Board of Directors to employ an executive director of the Research Corporation; and

     (3)  Establishes a limit on the salary of the executive director.

     Your Committee received written comments in opposition to this measure from the State Procurement Office and the University of Hawaii System.

     Your Committee finds that the fundamental mission of the Research Corporation of the University of Hawaii is to support the research and training programs of the University of Hawaii and to enhance research, development, and training generally in Hawaii.  This measure clarifies the role of the Research Corporation and its Board of Directors, as well as the relationship between the Board of Directors and the University of Hawaii System.

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1388, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1388, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair