STAND. COM. REP. NO. 109

Honolulu, Hawaii

, 2021

RE: H.B. No. 63

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Higher Education & Technology, to which was referred H.B. No. 63 entitled:

"A BILL FOR AN ACT RELATING TO NON-GENERAL FUNDS,"

begs leave to report as follows:

The purpose of this measure to reclassify or abolish certain non-general funds of the Department of the Attorney General and repeal the University of Hawaii at Manoa Intercollegiate Athletics Special Fund and University of Hawaii at Hilo Intercollegiate Athletics Special Fund and transfer the remaining unencumbered balances in these funds to the general fund.

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 the Attorney General and Tax Foundation of Hawaii.

Your Committee finds that the repeal and reclassification of the University of Hawaii non-general funds in this measure are pursuant to the recommendations in the February 2020 Auditor's report to the Governor and the Legislature, "Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the University of Hawai‘i" (Report No. 20-03).

Your Committee notes the comments of the Department of the Attorney General on the lapse of funds in the National Mortgage Trust Account to the general fund and asks that your Committee on Judiciary & Hawaiian Affairs to address this should it decide to hear this measure.

Your Committee has amended this measure by:

(1) Retaining the University of Hawaii at Manoa Intercollegiate Athletics Special Fund and the University of Hawaii at Hilo Intercollegiate Athletics Special Fund;

(2) Changing the effective date to July 1, 2060, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Higher Education & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 63, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 63, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

GREGG TAKAYAMA, Chair