SB1207 HD1 HSCR1091

STAND. COM. REP. NO.1091

Honolulu, Hawaii

, 2001

RE: S.B. No. 1207

S.D. 1

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1207, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this bill is to:

(1) Require the University of Hawaii (UH) to develop and implement a procedure no later than October 1, 2001, for advising subsidiaries on how to avoid future claims. This would ensure that new policies are developed and existing practices are modified to avoid the repetition of similar claims;

(2) Require UH to submit a confidential report to selected members of the Legislature on claims and remedial action taken;

(3) Clarify that UH's immunity from suit under the Eleventh Amendment was not abrogated by Act 115, Session Laws of Hawaii (SLH) 1998; and

(4) Specify that settlements of claims or judgments against UH may be made from legislative appropriations.

UH testified in support of this measure.

After UH was granted autonomy pursuant to Act 115, SLH 1998, a Ninth Circuit Court of Appeals decision raised the question of whether UH continues to enjoy 11^th Amendment protection as an arm of the State. Your Committee has been informed that one of the factors in determining whether an entity is an arm of the state is whether a money judgment would be satisfied out of state funds. Your Committee finds that it was not the intent of the Legislature to nullify UH's immunity under the 11^th Amendment.

Your Committee has amended this bill by:

(1) Clarifying that UH general counsel shall advise its clients on how to avoid future claims and request clients to take remedial action no later than October 1^st of each year;

(2) Ensure that disclosure of this information to the Legislature will not constitute a waiver of confidentiality, and the disclosed information shall be protected from discovery or from use for any purpose in any proceeding involving UH; and

(3) Correcting errors to conform to drafting conventions.

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. 1207, S.D. 1, as amended herein, and recommends that it pass Second Reading be in the form attached hereto as S.B. No. 1207, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

		____________________________ ERIC G. HAMAKAWA, Chair