STAND. COM. REP. NO. 226

Honolulu, Hawaii

RE: S.B. No. 741

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. 741 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 establish an External Audit Committee within the University of Hawaii to audit the University of Hawaii System and the Board of Regents.

Your Committee received testimony in opposition to this measure from the Public First Law Center.

Your Committee received comments on this measure from the Office of Information Practices and one individual.

Your Committee finds that the University of Hawaii and the Board of Regents require oversight to maintain accountability, transparency, and efficiency. Your Committee further finds that a process to identify, assess, and respond to risks would enable the University of Hawaii to more smoothly operate. This measure establishes an External Audit Committee to ensure that the Board of Regents and University of Hawaii System implement effective enterprise risk management practices.

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. 741 and recommends that it pass Second Reading 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