STAND. COM. REP. NO. 2011

Honolulu, Hawaii

RE: S.B. No. 2862

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 2862 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 require the University of Hawai‘i to submit a report to the legislature within thirty days of each appropriation transfer or changes between programs.

Your Committee received testimony in opposition to this measure from the University of Hawai‘i.

Your Committee finds that, unlike most state agencies, the University of Hawai‘i has the authority to transfer appropriated funds and positions among programs and between fiscal quarters without legislative authorization. Although the University of Hawai‘i is currently required to account for these transfers in quarterly and fiscal year-end reports to the Legislature, your Committee finds that a thirty day reporting requirement would make the financial flexibility enjoyed by the University of Hawai‘i more transparent and accountable.

Your Committee has amended this measure by inserting an effective date of May 12, 2050, to encourage further discussion.

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. 2862, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2862, S.D. 1, and be referred to your Committee on Ways and Means.

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

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KAIALI'I KAHELE, Chair