STAND. COM. REP. NO. 2316

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3141
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Education and Technology and Labor and
Environment, to which was referred S.B. No. 3141 entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to provide the University of
Hawaii with complete ministerial autonomy.

     The measure accomplishes this by making the University of
Hawaii's status comparable to that of the Judiciary.  The measure
also makes all University of Hawaii employees subject to the
University's personnel system and removes all University
employees from civil service.  Finally, the measure eliminates
the Director of Finance and Governor from the University's
budgetary process.

     Testimony in support of the measure was received from the
Hawaii Business Roundtable and the Hawaii Government Employees
Association.

     Your Committees find that a strong university system can be
a significant contributor to a robust economy, providing both
quality higher education and dollars for the surrounding
communities.  Your Committees also find that in other
jurisdictions, universities that contribute in a significant
degree to the community's economic well being possess broad
authority to respond to changing opportunities.


 
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     In recent years, the University of Hawaii has been granted
increasing fiscal autonomy from the executive branch.  Last year,
the Legislature passed a broad-based measure that gave the
University increased authority to manage its assets, personnel,
and programs.  Although the University did receive increased
autonomy, the University of Hawaii needs complete autonomy from
the executive branch to maximize it's potential to grow as a
world-class institution and contribute to the State's economic
revitalization.

     Your Committees understand that the portion of the measure
that deals with the removal of University of Hawaii employees
from the civil service system is, to a certain extent, addressed
in the Administration's omnibus civil service reform bill, and as
such, may seem redundant.  However, your Committees believe that
the issue has merit and has therefore left the personnel
provisions intact so that further discussion on the matter may
progress.

     As affirmed by the records of votes of the members of your
Committees on Education and Technology and Labor and Environment
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 3141 and recommend that
it pass Second Reading and be referred to the Committee on Ways
and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Technology and Labor and
                                   Environment,



____________________________       ______________________________
BOB NAKATA, Chair                  DAVID Y. IGE, Chair

 
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