STAND. COM. REP. NO. 903-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3141
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
S.B. No. 3141 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide complete autonomy to
the University of Hawaii (UH) from the Executive Branch.

     Your Committee finds that this bill would provide the UH
with significantly more fiscal autonomy, stimulate
entrepreneurship, and allow the UH to more freely and actively
pursue self-improvement.

     The UH, the Chamber of Commerce of Hawaii, Hawaii Business
Roundtable, and the Hawaii Association of Realtors supported this
bill.  The Hawaii Government Employees Association commented on
this bill.  The United Public Workers and the Department of
Budget and Finance opposed this bill.

     Upon further consideration, your Committee has amended this
bill by deleting its contents and inserting the substantive
provisions of H.B. No. 2813, H.D. 1.  H.B. No. 2813, H.D. 1 was
reported from your Committee earlier this session.  As amended,
the bill now gives the UH fiscal autonomy from the Executive
Branch and clarifies the appropriation process by:

     (1)  Requiring the Board of Regents of the UH to submit
          their budget directly to the Legislature;

 
 
                                 STAND. COM. REP. NO. 903-00
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     (2)  Eliminating executive review of the budget;

     (3)  Defining "base general fund appropriation" the amount
          of general funds appropriated, not including one-time
          appropriations or appropriations restricted by bill or
          proviso; and 

     (4)  Replacing the term "general fund appropriation" with
          "base general fund appropriation".

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of S.B.
No. 3141, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 3141, H.D. 1, and
be referred to the Committees on Labor and Public Employment and
Finance.

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



                                   ______________________________
                                   DAVID MORIHARA, Chair