STAND. COM. REP. NO. 1265

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 85
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
H.C.R. No. 85 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING A MANAGEMENT AUDIT
     OF THE UNIVERSITY OF HAWAII TO DETERMINE THE EFFECTS OF THE
     FLEXIBILITY GRANTED TO THE UNIVERSITY UNDER ACT 115, SESSION
     LAWS OF HAWAII 1998,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Legislative Auditor to perform a management audit of the
University of Hawaii (UH) over a two-year period to:

     (1)  Determine the effects of the increased flexibility that
          was granted to UH under Act 115, Session Laws of Hawaii
          1998 (Act 115); and

     (2)  Provide an interim report to the 2000 Legislature and a
          final report to the 2001 Legislature.

     UH testified that while it will cooperate with the
Legislative Auditor, UH feels that a management audit on Act 115
is premature, given that the effective date of Act 115 was
July 1, 1998, less than nine months ago.  UH also testified that
despite severe time constraints, UH has made significant progress
in implementing the flexibility provisions enumerated in Act 115.


 
 
 
 
                                 STAND. COM. REP. NO. 1265
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee concurs with the intent and purpose of H.C.R. No.
85 and recommends that it be referred to the Committee on
Legislative Management.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair