STAND. COM. REP. NO. 1509

Honolulu, Hawaii

RE:    H.B. No. 541

       H.D. 1

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 541, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII TUITION AND FEES SPECIAL FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide increased oversight of the University of Hawaii tuition and fees special fund.

     Specifically, this measure:

(1)  Requires each campus of the University of Hawaii to prepare an operations plan to be submitted with estimated quarterly budget requirements and reviewed by the University of Hawaii President and the Vice President for Budget and Finance and Chief Financial Officer;

(2)  Empowers the University's Vice President for Budget and Finance and Chief Financial Officer to review the operations plan and withhold or modify the planned expenditures if the planned expenditures are in excess of actual need or funds will be insufficient to meet authorized expenditure levels; and

(3)  Requires that all moneys in the University of Hawaii tuition and fees special fund for each campus lapse to the credit of budget program identification number UOH900 (University of Hawaii, system wide support) at the end of each fiscal year.

     Your Committee received written comments in support of this measure from the University of Hawaii System.

     Your Committee finds that preparation and review of an operations plan by each University of Hawaii campus would promote consistency in policy decisions, increase efficient planning, and ensure that appropriations are not exhausted before the end of the fiscal year.  This measure will establish fiscal controls that will provide the President and the Vice President for Budget and Finance and Chief Financial Officer with greater control over University of Hawaii operations.

     Your Committee notes that section 37-74(d), Hawaii Revised Statutes, requires the University of Hawaii to account for transfers of appropriated funds and positions for the operating cost category among programs, among cost elements in a program, and between quarters, in quarterly reports to the Governor and in annual reports to the Legislature and the Governor.

     Your Committee has amended this measure by making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

     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. 541, 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. 541, H.D. 1, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair