STAND. COM. REP. NO. 1430-00

                                 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 Finance, to which was referred S.B. No.
539, S.D. 1, H.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 is to propose an amendment to the
Constitution of the State of Hawaii (Hawaii Constitution)
granting autonomy to the University of Hawaii (UH) in matters
involving the internal structure, management, and operation of
UH.

     UH, the UH Professional Assembly, the UH Alumni Association,
the Hawaii Business Roundtable, and a member of the UH at Hilo
Advisory Board testified in support of the measure.  The United
Public Workers, the Chamber of Commerce of Hawaii, and the Hawaii
Government Employees Association testified in support of the
intent of the measure.  The Department of the Attorney General
and the Office of Hawaiian Affairs testified in opposition to
this measure.  Comments were submitted by the Department of
Budget and Finance and the Hawaii State Ethics Commission.

     Providing sufficient authority and flexibility to the UH to
set its own course is a laudable goal.  However, your Committee
is concerned that the proposed amendment to the Hawaii

 
 
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Constitution may be too broadly worded, leading to ambiguity and
conflicting interpretation.  Since the proposed amendment does
not define the terms used, it is ambiguous and open to broad
interpretation.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
539, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair