STAND. COM. REP. NO.  482

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 548

      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. 548 entitled:

"A BILL FOR AN ACT RELATING TO HIGHER EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to strengthen the fiscal sustainability of the College of Pharmacy at the University of Hawaii at Hilo by:

     (1)  Establishing a Board of Governors to administer the University of Hawaii at Hilo College of Pharmacy Special Fund; and

     (2)  Requiring the Board of Regents of the University of Hawaii, commencing not later than July 1, 2020, to perform a program evaluation to consider whether the College of Pharmacy should be continued.

The University of Hawaii opposed this measure.  The Department of Budget and Finance submitted comments.

     Your Committee has amended the measure by, among other things:

     (1)  Deleting the provisions establishing the University of Hawaii at Hilo College of Pharmacy Board of Governors and the University of Hawaii at Hilo College of Pharmacy Special Fund;

     (2)  Requiring the Board of Regents of the University of Hawaii, commencing not later than July 1, 2017, to perform a program evaluation every two years to consider whether the College of Pharmacy should be continued;

     (3)  Changing the main criteria of the program evaluation identified in paragraph (2) from the ability of the College of Pharmacy to fiscally sustain its operations to a comparison of the funds received by the College of Pharmacy with the costs of operating the College of Pharmacy;

     (4)  Also requiring the program evaluation to include a detailed accounting of existing revenue sources and a six-year projection of revenues, segregated by revenue source;

     (5)  Providing that the education of students currently enrolled at the University of Hawaii at Hilo College of Pharmacy will not be disrupted, even if the Board of Regents of the University of Hawaii initiates proceedings to terminate the College of Pharmacy if it finds, as a result of its program evaluation, that the College of Pharmacy is not fiscally sustainable; and

     (6)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 548, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 548, 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