STAND. COM. REP. NO. 171-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 1747

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 1747 entitled:

"A BILL FOR AN ACT RELATING TO UNIVERSITY PROJECTS AND PURPOSES,"

begs leave to report as follows:

The purpose of this bill is to provide additional flexibility and control to the University of Hawaii (UH) Board of Regents in financing and managing capital improvement projects for UH.

UH submitted testimony in support of this bill. The Department of Budget and Finance submitted testimony in opposition to this bill.

Your Committee finds that this bill will enable the Board of Regents to issue revenue bonds to finance and more actively manage capital improvement projects for UH. The power to issue revenue bonds independently will allow UH to act more quickly to address its capital improvement needs, and take the administrative burden away from the State in managing these projects. However, your Committee finds that as this will be a new power granted to UH that could have a significant impact on the finances of the State, it would be prudent to place a limit on the amount of revenue bonds that can be issued by UH.

 

However, your Committee notes that there are concerns regarding the constitutionality of allowing UH to issue revenue bonds. Additionally, some of the language of the bill is somewhat unclear and ambiguous. Your Committee respectfully requests that the Committee on Finance address these issues.

Upon further consideration, your Committee has amended this bill by:

(1) Placing a cap of $25,000,000 on revenue bonds issued by the Board of Regents; and

(2) Changing the effective date to July 1, 2050, to facilitate further discussion.

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. 1747, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1747, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

K. MARK TAKAI, Chair