STAND. COM. REP. NO.  419

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 545

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 545 entitled:

"A BILL FOR AN ACT RELATING TO FUNDS,"

begs leave to report as follows:

The purpose of this measure is to improve fiscal accountability at the University of Hawaii by:

     (1)  Repealing the:

          (A)  University of Hawaii Community Services Special Fund;

          (B)  Hawaii Educator Loan Program Special Fund;

          (C)  Community Colleges Special Fund;

          (D)  Hawaii Medical Education Special Fund;

          (E)  Discoveries and Inventions Special Fund;

          (F)  University of Hawaii Alumni Special Fund;

          (G)  Animal Research Farm, Waialee, Oahu Special Fund;

          (H)  Professional Student Exchange Program Special Fund;

          (I)  Center for Labor Education and Research Revolving Fund;

          (J)  Career and Technical Training Projects Revolving Fund;

          (K)  Conference Center Revolving Fund;

          (L)  Senator Hiram L. Fong Scholarship Program Endowment Trust Fund;

          (M)  Senator Oren E. Long Scholarship Program Endowment Trust Fund; and

          (N)  Hawaii Health Corps Revolving Fund; and

     (2)  Abolishing the:

          (A)  Hurricane Iniki Insurance Proceeds Special Fund;

          (B)  Agency Fund Trust Account;

          (C)  University of Hawaii Okinawa Program Trust Fund; and

          (D)  Unrestricted Quasi-endowment Income and Scholarship Revolving Fund.

The Office of the Auditor supported this measure.  Several concerned individuals opposed the measure.  The University of Hawaii, ILWU Local 142, International Brotherhood of Electrical Workers Local Union 1260, Labor Education Advisory Council, and Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this measure by:

     (1)  Renaming the University of Hawaii Quasi-endowment Trust Fund and codifying it in statute;

     (2)  Reclassifying the Hawaii Educator Loan Program Special Fund as the Hawaii Educator Loan Program Revolving Fund;

     (3)  Reclassifying the Community Colleges Special Fund as the Community Colleges Revolving Fund;

     (4)  Reclassifying the Professional Student Exchange Program Special Fund as the Professional Student Exchange Program Revolving Fund; and

     (5)  Retaining the Center for Labor Education and Research Revolving Fund.

     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 H.B. No. 545, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 545, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ISAAC W. CHOY, Chair