STAND. COM. REP. NO. 1439-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2833

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 2833, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the University of Hawai‘i to issue $100,000,000 in revenue bonds for the purpose of financing the construction and maintenance of qualifying capital improvement projects.

The University of Hawai‘i, University of Hawai‘i Student Caucus, University of Hawai‘i Alumni Association, and Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i testified in support of this measure.

Your Committee has amended this measure by:

(1) Changing the revenue bond authorization and appropriation amounts, respectively, to unspecified amounts; and

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

Should the Committee on Finance deliberate this measure further, you Committee on Higher Education respectfully requests that it consider providing revenue bond authorization and appropriation amounts, respectively, of $100,000,000 for the purpose of financing the construction and maintenance of qualifying capital improvement projects.

Your Committee appreciates the concerns raised that the University of Hawai‘i's authority to issue revenue bonds may have an impact on student tuition costs. However, your Committee also notes that there was strong support from many individuals for the need to finance a multitude of small repairs and maintenance improvements necessary at all of the campuses within the University of Hawai‘i System that will benefit students, teachers, and the administration alike. In response to the concerns of fiscal oversight, your Committee notes that there are safeguards contained within this measure as the Board of Regents may only issue revenue bonds with the approval of both the Governor and the Legislature.

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. 2833, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2833, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

ANGUS L.K. McKELVEY, Chair