STAND. COM. REP. NO. 877-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 539
                                     S.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. 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 measure is to propose a Constitutional
amendment that provides the University of Hawaii (University)
with autonomy.

     Your Committee finds that the Constitutional amendment
proposed in this bill provides the University with the authority
to manage its internal affairs.  The increasing complexity of
public higher education requires the University to be responsive
to the needs of the community on a timely basis, and only
autonomy over their affairs will allow the University to
accomplish this goal.  This measure will also enable the
University to be a major contributor to the economic development
of the State.  This is consistent with the experiences of other
regions where a quality higher education industry is an essential
element to successful economic development.

     Your Committee further clarified concerns about the impact
of the measure on several issues.  The measure accomplishes the
following:


 
 
                                 STAND. COM. REP. NO. 877-00
                                 Page 2

 
     (1)  Codifies in the State Constitution many of the powers
          recently granted to the University through legislation;

     (2)  Provides that all organizational and management
          decisions internal to the University are clearly the
          responsibility of the Board of Regents;

     (3)  Clarifies that the status of programs are decisions
          internal to the University; and

     (4)  Ensures that there be no unfunded mandates unless in
          compliance with statewide laws, as provided on page 1,
          lines 18 and 19 of the bill.

The measure does not:

     (1)  Affect the budget process of the Legislature;

     (2)  Affect the Governor's ability to restrict funds;

     (3)  Prevent the Legislature from funding new initiatives;

     (4)  Supersede laws of statewide concern;

     (5)  Supersede state employment laws found in Title 7,
          Hawaii Revised Statutes (Civil Service/Collective
          Bargaining); and

     (6)  Affect Hawaiian ceded land rights.

     The University of Hawaii, the University of Hawaii
Professional Assembly, the University of Hawaii Alumni
Association, the University/Community Partnership, the Hawaii
Agriculture Research Center, the Chamber of Commerce, the Hawaii
Association of Realtors, the Hawaii Business Roundtable, and a
graduate student supported the bill.  The Hawaii Government
Employees Association and the United Public Workers supported the
intent of the bill.  The Hawaii State Ethics Commission and the
Department of Budget and Finance provided comments about the
measure.  The Office of Hawaiian Affairs opposed the bill.

     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. 539, S.D. 1, and recommends that it pass Second Reading and
be referred to the Committee on Judiciary and Hawaiian Affairs.


 
 
                                 STAND. COM. REP. NO. 877-00
                                 Page 3

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



                                   ______________________________
                                   DAVID MORIHARA, Chair