STAND. COM. REP. NO. 1130

Honolulu, Hawaii

RE: S.B. No. 1197

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1197, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase procurement accountability at the University of Hawaii.

Specifically, this measure:

(1) Designates the Vice President for Budget and Finance and Chief Financial Officer as the chief procurement officer for the University of Hawaii;

(2) Appropriates moneys to effectuate the transfer of chief procurement officer duties; and

(3) Appropriates moneys to the University of Hawaii for repair and maintenance of University of Hawaii campus buildings and infrastructure.

Your Committee received written comments in opposition to this measure from the University of Hawaii.

Your Committee finds that the President of the University of Hawaii's role as the leader of the University of Hawaii System may conflict with the duty of a chief procurement officer to oversee ethical public procurement in accordance with the Hawaii Public Procurement Code. Your Committee further finds that this measure eliminates this potential conflict of interest by ensuring that the two roles are held by separate individuals.

Your Committee has amended this measure by:

(1) Deleting the appropriation of an unspecified sum of general funds for repair and maintenance of University of Hawaii campus buildings and infrastructure;

(2) Inserting language that authorizes the issuance of general obligation bonds in the sum of $20,000,000, and appropriating the bond proceeds to University of Hawaii, Systemwide Support (UOH900) to renew, improve, and modernize facilities; and

(3) Amending the preamble to reflect the measure's amended purpose.

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. 1197, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1197, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair