STAND. COM. REP. NO. 920

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1322

       H.D. 2

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Education, to which was referred H.B. No. 1322, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO CERTAIN FUNDS OF THE UNIVERSITY OF HAWAII,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Convert certain revolving funds of the University of Hawaii into special funds by repealing the revolving funds and establishing new special funds;

 

     (2)  Repeal certain funds of the University of Hawaii; and

 

     (3)  Transfer the remaining balances of certain repealed funds either to specific alternative funds or require the balances to lapse to the General Fund.

 

     Your Committee received comments on this measure from the University of Hawaii System.

 

     Your Committee finds that this measure will provide the University of Hawaii System with greater flexibility and increased efficiency in the use and management of certain funds.  Your Committee further finds that the repeal and reclassification of the funds indentified in this measure are in accordance with the findings and recommendations of a December 2009 report of the Auditor of the State of Hawaii.

 

     Your Committee recognizes the concerns of the University of Hawaii System that this measure as currently drafted may be interpreted by some to mean that all repealed funds, including those which are re-established as special funds, shall lapse to the General Fund as of June 30, 2011. 

 

     Accordingly, your Committee has amended this measure by deleting its contents and replacing them with the contents of S.B. No. 814, S.D. 2 and further amending the measure by:

 

     (1)  Repealing section 304A-2264, Hawaii Revised Statutes, which establishes the University of Hawaii Conference Center Revolving Fund; and

 

     (2)  Clarifying that all balances unencumbered and unexpended as of June 30, 2011, in the University of Hawaii Conference Center Revolving Fund shall be transferred to the University of Hawaii Commercial Enterprises Revolving Fund established under section 304A-2251, Hawaii Revised Statutes, rather than to the University of Hawaii Auxiliary Enterprises Special Fund.

 

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1322, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1322, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

JILL TOKUDA, Chair