STAND. COM. REP. NO. 523

Honolulu, Hawaii

RE: S.B. No. 1487

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 1487 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Board of Regents of the University of Hawaii to issue revenue bonds for up to $800 million to complete as many of its priority capital facility construction, renovation, modernization, and repair projects as possible.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System.

Your Committee finds that while the University of Hawaii does not currently have any specific projects on the horizon identified for revenue, pre-emptively authorizing the University to issue revenue bonds for capital projects will allow the University to address any projects that materialize. Your Committee further finds that should any projects arise, the University would require a budget appropriation by the Legislature and the approval of the Board of Regents and Governor. This measure will allow the University to identify any capital improvement projects that could be funded through revenue bonds up until June 30, 2030.

Your Committee has amended this measure by:

(1) Changing the maximum amount appropriated out of the revenue bonds and interest earned thereon authorized by this measure for the University of Hawaii to carry out the purposes of this measure from $800 million to an unspecified amount;

(2) Inserting an effective date of July 31, 2050, to encourage further discussion; and

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

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. 1487, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1487, 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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DONNA MERCADO KIM, Chair