STAND. COM. REP. NO. 229

Honolulu, Hawaii

RE: S.B. No. 1254

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. 1254 entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF REGENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to ensure that only individuals without an active employment relationship with the University of Hawaii shall be eligible for appointment to the Board of Regents.

Your Committee received testimony in support of this measure from one individual.

Your Committee received testimony in opposition to this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and one individual.

Your Committee finds that appointing a current employee of the University of Hawaii to the Board of Regents may raise a conflict of interest as the employee may have personal or departmental interests that could raise ethical concerns, compromise the impartiality of decisions made by the Board of Regents, and erode the public's trust in the governance of the University. Your Committee further finds that an individual concurrently filling the roles of employee and regent could lead to confusion regarding duties and responsibilities, hindering effective decision-making. This measure prohibits active employees of the University of Hawaii or the Research Corporation of the University of Hawaii (RCUH) from serving on the Board of Regents to ensure greater accountability, transparency, and fairness in the University's governance.

Your Committee notes the concerns raised regarding the student member of the Board of Regents who may have an active employment relationship with the University or RCUH, and therefore, be subject to the same conflict of interest issues as non-student members. Your Committee finds that this issue raises concerns that merit further consideration and respectfully requests that subsequent Committees to which this measure is referred examine the matter.

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. 1254 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

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

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DONNA MERCADO KIM, Chair