Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1053
                                     H.D. 1

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


     Your Committee on Higher Education, to which was referred
H.B. No. 1053 entitled:


begs leave to report as follows:

     The purpose of this bill is to repeal the reporting
requirement for budget transfers by the University of Hawaii.

     Presently, the University of Hawaii must report transfers of
operating funds on a quarterly basis to the Governor, and on an
annual basis to the Legislature.  The reporting requirement was
instituted in 1986 as part of the legislature's policy to grant
autonomy to the University of Hawaii.

     As further autonomy was granted to the University under Act
115, Session Laws of Hawaii 1998, the operating funds reporting
requirement has proven to be duplicative and unnecessary.  Your
Committee finds that any university budget transfers may be
explained by notations on allotment documents processed by the
Department of Budget and Finance.

     Your Committee received favorable testimony from the
University of Hawaii and the Department of Budget and Finance.

     Your Committee has amended the bill by making technical
changes that have no substantive effect.

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                                 STAND. COM. REP. NO. 87
                                 Page 2

     As affirmed by the records 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. 1053, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1053, 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

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