STAND. COM. REP. NO. 1386

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 538
                                     S.D. 2
                                     H.D. 1




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

Sir:

     Your Committees on Higher Education and Labor and Public
Employment, to which was referred S.B. No. 538, S.D. 2, entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to provide independence for the
University of Hawaii (University) from the executive branch,
notably in matters of budgeting, the expenditure of funds, and
personnel management.

     The University testified that the bill would advance those
acts providing increased flexibility for the University that have
previously been passed by the Legislature, permitting a more
responsive approach to the management of its resources.  The
University of Hawaii Professional Assembly testified in support
of the bill.  The Department of Budget and Finance and the Hawaii
Government Employees Association testified in opposition to the
bill.

     Your Committees find that the University has demonstrated a
high level of responsibility in using the statutory flexibility
created by the Legislature for the University in recent years.
Recognizing that the State Constitution has established the
University of Hawaii as a "body corporate," your Committees
intend to make the University of Hawaii even more independent
from the Executive Branch.  Significantly, this bill separates
the budgeting and expenditure processes of the University from
the Executive Branch.

 
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                                 Page 2

 

     Regarding personnel management, the Governor has proposed to
reform the State's civil service system.  Therefore, at this time
your Committees feel that it is premature to separate the
University's personnel management system from the overall State
personnel management system.

     Your Committees have amended this bill by:

     (1)  Deleting provisions relating to the creation of a
          separate personnel management system for the
          University;

     (2)  Changing the effective date from July 1, 2099, to July
          1, 1999; and

     (3)  Making technical, nonsubstantive revisions for style
          and clarity.

     As affirmed by the records of votes of the members of your
Committees on Higher Education and Labor and Public Employment
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 538, S.D. 2, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as S.B. No. 538, S.D. 2, H.D. 1, and be referred
to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Higher Education
                                   and the Arts and Labor and
                                   Public Employment,

                                   
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Chair         DAVID MORIHARA, Chair