STAND. COM. REP. NO. 82

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1184
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 1184 entitled: 

     "A BILL FOR AN ACT RELATING TO MANAGEMENT OF FINANCING
     AGREEMENTS FOR THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to allow the University of
Hawaii Board of Regents to approve its own financing agreements
as defined in Chapter 37D, Hawaii Revised Statutes (HRS), when
the principal amount does not exceed $3,000,000.

     Testimony in support of this measure was submitted by the
University of Hawaii.  Testimony in support of the intent of this
measure was submitted by the University of Hawaii Professional
Assembly.

     Your Committee finds that while section 37D-2, HRS,
currently requires all State agencies to obtain approvals when
entering into financing agreements, the University had utilized
financing agreements for the purchase of equipment for many years
prior to the enactment of section 31D-2, HRS, without incident.
Thus, your Committee further finds that the University is
sympathetic to the intent of Chapter 37D, HRS, and will not abuse
the fast-track authority provided in this measure.  In addition,
the cap of $3,000,000 on the principal amount will provide a
further safeguard.  This measure will allow the University to
secure equipment, goods, and services in a timely manner, with
little risk or impact to the State's budgetary constraints.

 
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                                   STAND. COM. REP. NO. 82
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     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1184 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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