STAND. COM. REP. NO. 287

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 539
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Education and Technology and Ways and
Means, to which was referred S.B. No. 539 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,"

beg leave to report as follows:

     The purpose of this measure is to propose a Constitutional
amendment to provide the University of Hawaii with autonomy in
all matters related to the University.

     Testimony in support of this measure was submitted by the
University of Hawaii and the University of Hawaii Professional
Assembly.  Testimony in opposition of this measure was submitted
by the Department of Budget and Finance, the Hawaii Government
Employees Association, and the Hawaii State Ethics Commission.

     Last session, the Legislature gave the University of Hawaii
increased authority to manage its assets, personnel, and
programs.  Most notably, the University was given the authority
to hire and retain its own attorneys, independent of the
Department of the Attorney General.  In this session, your
Committee on Education and Technology has heard and passed S.B.
No. 538, which amends Hawaii Revised Statutes to give the
University of Hawaii complete autonomy, and status comparable to
the Judiciary.  This measure, S.B. No. 539, is its companion, as

 
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only by a Constitutional amendment can the University be
completely separated from the Executive Branch.  

     Your Committees find that by granting the University of
Hawaii complete autonomy from the Executive Branch, the
University will be provided with the opportunities and incentives
for developing an entrepreneurial, competitive role in
contributing to Hawaii's economic growth.  However, your
Committees also find that it is difficult to anticipate all the
possible repercussions of such a broad-based measure.  For
example, in last session's broad-based measure relating to the
University's increased authority, the University of Hawaii was
granted the power to hire and retain its own attorneys, and the
Legislature did not anticipate that the Department of the
Attorney General would understand this to mean that the
University would not receive any legal services from the
Department.  Thus, additional efforts were spent determining and
clarifying the legal services which the University will provide
for itself, and those which the Department of the Attorney
General will provide, and the costs involved for these services.

     Because your Committees believe that further discussion is
needed on this issue, this measure has been amended to take
effect upon approval.  Your Committees are aware that this
amendment makes the measure defective, and by doing so, your
Committees hope to foster further discussion on this measure.
Your Committees encourage future testimony on this measure to
address these concerns:

     (1)  If the University is completely autonomous, and is
          charged for services provided by the Executive Branch,
          does the University intend to charge for services it
          provides to other state agencies; 

     (2)  While S.B. No. 538 mandates that the University's
          budget shall be restricted in the same percentage as
          other state agencies, how will the percentage be
          determined, and how will the funding to the other
          departments be affected; and

     (3)  Because currently there are over 300 laws governing the
          University, what would the consequences be of enacting
          this Constitutional amendment, in terms of affecting
          the validity of these laws?  What other possible
          problems could arise as a result of this measure?

Your Committees believe that this discussion is necessary in
addressing and possibly averting any misunderstandings or

 
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repercussions that may stem from this measure, and its companion,
S.B. No. 538.

     As affirmed by the records of votes of the members of your
Committees on Education and Technology and Ways and Means that
are attached to this report, your Committees are in accord with
the intent and purpose of S.B. No. 539, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as S.B. No. 539, S.D. 1, and be referred to the Committee on
Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Technology and Ways and Means,



____________________________       ______________________________
CAROL FUKUNAGA, Co-Chair           DAVID Y. IGE, Chair



____________________________       
ANDREW LEVIN, Co-Chair

 
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