STAND. COM. REP. NO. 1067-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 539
                                     S.D. 1
                                     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 Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 539, S.D. 1, entitled: 

     "A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE X,
     SECTION 6, OF THE HAWAII CONSTITUTION, TO PROVIDE THE
     UNIVERSITY OF HAWAII WITH AUTONOMY IN ALL MATTERS RELATED TO
     THE UNIVERSITY,"

begs leave to report as follows:

     The purpose of this bill as received is to propose an
amendment to the State Constitution to provide the University of
Hawaii with autonomy in all matters related to the University.

     Testimony in support of this measure was received from the
University of Hawai`i, the University of Hawai`i Alumni
Association, University of Hawaii Professional Assembly, St.
Francis Medical Center-West, United Public Workers, AFSCME, Local
646, AFL-CIO, and The Chamber of Commerce of Hawaii.  Testimony
in opposition to the bill was received from the State Attorney
General, Department of Budget and Finance, and the Office of
Hawaiian Affairs.

     Your Committee first wishes to acknowledge the need for the
University to control its own internal affairs.  However, your
Committee must emphasize that the delegation of such control
through a constitutional amendment requires close scrutiny.
While this measure is well-intentioned, the Legislature must
recognize its full impact and future ramifications.

 
 
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     Your Committee believes that as currently phrased, the
proposed constitutional amendment is susceptible to
misinterpretation because its essential terms, i.e., "internal"
and "statewide concern", are vague, ambiguous, and overbroad.
This has already been evidenced by the testimony presented at the
hearing on this measure.  For example, the University of Hawaii
Professional Assembly ("UHPA") stated that the amendment is
necessary because the University "is unable to make crucial
decisions with respect to those employed to work in the
university system nor can the Regents negotiate collective
bargaining agreements covering the various employment groups
within the university system."  UHPA presented such testimony
notwithstanding House Standing Committee Report No. 877-00
(noting that certain state employment laws are of statewide
concern) and the holdings in City & County v. Ariyoshi, 67 Haw.
412 (1984) and Hawaii Government Employees' Association v. County
of Maui, 59 Haw. 65 (1978)(holding that civil service and
compensation matters are within the purview of the legislature).

     The hearing on this measure elicited other potential issues
that may be susceptible to future disagreement and litigation:
fiscal matters (including but not limited to budget
restrictions), ethical standards, and the disposition of ceded
lands.

     Your Committee believes that if this measure is to be
finally approved by the Legislature, the operative terms of the
constitutional amendment must first be made clear and
unambiguous.

     Accordingly, your Committee has amended this measure to
ensure future deliberation by adding language:

     (1)  Clarifying that the University is to be autonomous only
          in matters exclusively relating to the internal
          structure, management, and operation of the University;

     (2)  Leaving exclusive jurisdiction of identification of
          laws of statewide concern with the Legislature; and

     (3)  Amending the effective date.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 539, S.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as S.B. No. 539, S.D. 1, H.D. 1.


 
                                 STAND. COM. REP. NO. 1067-00
                                 Page 3

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair