STAND. COM. REP. NO. 2288

Honolulu, Hawaii

RE:    S.B. No. 2555

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Higher Education, to which was referred S.B. No. 2555 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to repeal the University of Hawaii's authority to issue revenue bonds.

     Your Committee received testimony in opposition to this measure from the University of Hawai‘i System.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that the University of Hawaii currently uses monies in the tuition and fees special fund as a revenue source for capital improvement projects that do not generate their own revenues.  Your Committee disagrees with the use of these monies for that purpose.

     Your Committee has amended this measure by:

     (1)  Removing language repealing the University of Hawaii's authority to issue revenue bonds;

     (2)  Inserting language prohibiting the University of Hawaii from using monies in the tuition and fees special fund for purposes related to university projects, university systems, or networks or any combination thereof, constructed or maintained through revenue bonds issued by the University of Hawaii; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 2555, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2555, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

BRIAN T. TANIGUCHI, Chair