STAND.
COM. REP. NO. 1797
Honolulu, Hawaii
, 2021
RE: S.B. No. 1225
S.D. 1
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Sir:
Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 1225, S.D. 1, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII BOARD OF REGENTS INDEPENDENT AUDIT COMMITTEE,"
begs leave to report as follows:
The purpose of this measure
is to:
(1) Require the Chair of
the Independent Audit Committee of the University of Hawaii Board of Regents to
be selected in a manner consistent with the Board of Regents' Bylaws;
(2) Limit the Board of
Regents' flexibility to appoint members to the Independent Audit Committee when
no member of the Board of Regents has financial expertise;
(3) Exempt the Independent
Audit Committee from public proceedings and records laws and open meetings laws
during its discussions with auditors on matters that should remain
confidential, and, at the Independent Audit Committee Chair's discretion, allow
the discussions to be held in the absence of the University of Hawaii President
or University of Hawaii Chief Financial Officer; and
(4) Clarify the
Independent Auditor's role with regard to enterprise risk management.
Your Committee finds that the Independent Audit Committee is an advisory body established
by the University of Hawaii Board of Regents' Bylaws and statutorily
established in section 304A-321, Hawaii Revised Statutes. Your Committee also finds that the existing
statute may inadvertently create a situation in which the Independent Audit
Committee does not have a chair, such as when the committee chair's term on the
Board of Regents ends on June 30 and committee membership is pending election
of a Board of Regents' chair. This
measure makes the appointment of the Independent Audit Committee Chair
consistent with the Board of Regents' Bylaws.
Your Committee further finds
that this measure will help to ensure that the Independent Audit Committee has the
continued expertise, independence, and ability to keep certain matters
confidential in order to allow the Committee to perform its oversight
responsibilities relating to enterprise risk management.
As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1225, S.D. 1, H.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,
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____________________________ MARK M. NAKASHIMA, Chair |
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