STAND. COM. REP. NO. 48

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 250
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
H.B. No. 250 entitled: 

     "A BILL FOR AN ACT RELATING TO THE MANAGEMENT OF FINANCING
     AGREEMENTS FOR THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this bill is to authorize the Board of
Regents to enter into financing agreements and sell, assign, or
otherwise dispose of them without the approval of the Director of
Finance or the Attorney General if the principal amount of the
financing agreement does not exceed $3,000,000.

     Testimony in support of the bill was submitted by the
University of Hawaii and the University of Hawaii Professional
Assembly.

     In the 1998 session the Legislature passed H.B. No. 2560,
enacted as Act 115, Session Laws of Hawaii 1998, which provided
the University with increased flexibility in managing its
resources.  The intent of the legislation was to empower the
University of Hawaii to become more entrepreneurial so that it
would have a greater impact on the state economy.  The
authorization to enter into financing agreements provided by H.B.
No. 250 enhances last year's flexibility legislation.  

     Your Committee has amended the bill by increasing the
ceiling of the amount of any financing agreement from $3,000,000
to $4,000,000.

 
 
                                 STAND. COM. REP. NO. 48
                                 Page 2

 
     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 H.B.
No. 250, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 250, H.D. 1, and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   DAVID MORIHARA, Chair