Honolulu, Hawaii



RE:    H.B. No. 545

       H.D. 1

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 545, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to address funding for the University of Hawaii.


     More specifically, this measure:


     (1)  Establishes the University of Hawaii quasi-endowment trust fund;


     (2)  Reclassifies the Hawaii educator loan program special fund as a revolving fund and makes conforming amendments;


     (3)  Repeals the following special funds:


          (A)  The University of Hawaii alumni special fund;


          (B)  The animal research farm, Waialee, Oahu special fund;


          (C)  The career and technical training projects revolving fund for the University of Hawaii at Hilo;


          (D)  The conference center revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii at Hilo;


          (D)  The Senator Hiram L. Fong scholarship program endowment trust fund;


          (E)  The Senator Oren E. Long scholarship program endowment trust; and


          (F)  The Hawaii health corps revolving fund;


     (4)  Reclassifies the professional student exchange program special fund as a revolving fund;


     (5)  Abolishes the following administratively established funds:


          (A)  The hurricane Iniki insurance proceeds special fund administratively established in 1993 and administered by the University of Hawaii; and


          (B)  The agency fund trust account administratively established prior to July 1985 and administered by the University of Hawaii; and


     (6)  Provides that all unencumbered balances remaining in the accounts and funds repealed by this measure shall lapse to the credit of the general fund on July 1, 2015.


     Prior to the hearing on this measure, a proposed S.D. 2 was prepared and made available for public review.  The proposed S.D. 2 amended this measure by:


     (1)  Deleting the contents of the measure;


     (2)  Adding new provisions that require the Director of Finance to transfer $300,000 from the bureau of conveyances special fund to the Hawaii historic preservation special fund; and


     (3)  Appropriating $300,000 from the Hawaii historic preservation special fund for the integrated information management system and document digitation of the State Historic Preservation Division.


     Your Committee received testimony in support of the proposed S.D. 2 from the Department of Land and Natural Resources and one individual.


     Your Committee received comments on the proposed S.D. 2 from the Tax Foundation of Hawaii.


     Your Committee finds that excess revenues may be transferred from one special fund to another special fund and be appropriated when necessary for specified purposes.


     Accordingly, your Committee has amended this measure by:


     (1)  Adopting the proposed draft of H.B. No. 545, H.D. 1, S.D. 2;


     (2)  Clarifying that the amount the Director of Finance is directed to transfer, from the bureau of conveyances special fund to the Hawaii historic preservation special fund, is $300,000 or so much thereof as may be necessary for fiscal year 2015-2016; and


     (3)  Adding language to the preamble section to specify the affected funds.


     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 H.B. No. 545, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 545, H.D. 1, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,