STAND. COM. REP. NO. 841
RE: S.B. No. 160
Honorable Donna Mercado Kim
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 160, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO UNIVERSITY OF HAWAII NON-GENERAL FUNDS,"
begs leave to report as follows:
The purpose and intent of this measure is to address recommendations made by the Auditor in Auditor Report No. 14-18 regarding non-general funds of the University of Hawaii.
Specifically, this measure:
(1) Reestablishes the Hawaii educator loan program special fund as a revolving fund;
(2) Reestablishes the community colleges special fund as a revolving fund;
(3) Repeals the University of Hawaii alumni special fund;
(4) Repeals the animal research farm, Waialee, Oahu special fund;
(5) Repeals the technical training projects revolving fund;
(6) Repeals the Senator Hiram K. Fong scholarship program endowment trust fund; and
(7) Repeals the Senator Oren E. Long scholarship program endowment trust fund.
Your Committee received written comments in support of this measure from the Office of the Auditor and the University of Hawaii. Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that the Auditor, in Auditor Report No. 14-18, recommended that the quasi-endowment income and scholarship revolving fund of the University of Hawaii be terminated because it did not meet revolving fund criteria and was not established by an Act of the Legislature as required by section 37-52.4, Hawaii Revised Statutes. Your Committee believes that terminating this fund would leave the substantial endowment without a proper vehicle from which to properly expend its funds. Accordingly, statutorily establishing the fund as a trust fund would meet the necessary statutory requirements and allow the University of Hawaii to continue funding the services supported by the University of Hawaii-established quasi-endowment income and scholarship revolving fund.
Your Committee has amended this measure by:
(1) Establishing the University of Hawaii quasi-endowment trust fund in chapter 304A, Hawaii Revised Statutes; and
(2) Inserting a provision that transfers the moneys in the quasi-endowment income and scholarship revolving fund of the University of Hawaii into the University of Hawaii quasi-endowment trust fund.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 160, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 160, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair