STAND. COM. REP. NO. 1022_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 833
                                     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 Finance, to which was referred H.B. No.
833 entitled: 


begs leave to report as follows:

     The purpose of this bill is to treat sales of tangible
personal property to the University of Hawaii (University) as
wholesale sales under the general excise tax.

     For purposes of the public hearing, your Committee
circulated a proposed H.D. 1 version that deleted the provisions
of the bill and inserted new language that would increase the
flexibility accorded to the University to manage its resources

     (1)  Expanding the authority of the University to make loans
          from an aggregate of $100,000 to an aggregate of

     (2)  Authorizing the University to make loans from financial
          institutions, in addition to the state treasury;

     (3)  Authorizing the University to carry over funds from one
          fiscal year to the next; and

     (4)  Authorizing the University to issue revenue bonds for
          activities, in addition to facilities.

     The University of Hawaii and the Department of Budget and
Finance submitted comments on the proposed H.D. 1 version of the

                                 STAND. COM. REP. NO. 1022_______
                                 Page 2

     Your Committee has amended this bill by deleting its
contents and inserting language that:

     (1)  Authorizes the University to make loans of up to

     (2)  Creates the University Activities Revolving Fund as a
          mechanism to account for moneys generated by loans and
          moneys to repay loans;

     (3)  Authorizes the University to carryover funds from one
          year to the next;

     (4)  Exempts the University from the prohibition that state
          agencies may not expend more than their allotments; and

     (5)  Repeals the bill on June 30, 2001, and reenacts
          sections 37-32, 37-41, and 37-42, Hawaii Revised
          Statutes, in the form in which they read on June 30,

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
833, as amended herein, and recommends that it pass Third Reading
in the form attached hereto as H.B. No. 833, H.D. 1.

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

                                   DWIGHT Y. TAKAMINE, Chair