HB517

SECTION 1. The legislature finds that the University of Hawaii was afforded significantly increased autonomy through a constitutional amendment which provided the University of Hawaii with complete control over its internal management. While the University of Hawaii is a state institution, as a large, diverse university system, it requires more independence than other state agencies. Furthermore, many of the finest public institutions of higher education throughout the country are those that have the greatest amount of freedom to pursue programs of their choosing and develop sources of funding.

While the University of Hawaii is more autonomous than before the ratification of the constitutional amendment, its status as a principal department of the executive branch and its reliance on general funds for personnel and operating moneys restricts its ability to act as a truly autonomous body. Furthermore, the availability of state moneys reduces the University of Hawaii's motivation to diversify its fiscal base by developing its fund-generating capabilities and seeking out additional sources of funding. Because the University of Hawaii is a land-grant university that has title to the land on which it is situated, it has natural resources at its disposal, with which it may generate funding, that are not available to all public colleges and universities.

The legislature finds that removing the University of Hawaii from the executive branch and restricting it from receiving general funds would enable the university to achieve truly meaningful autonomy. Accordingly, the purpose of this Act is to propose amendments to the state constitution specifying that the University of Hawaii shall:

(1) Be separate from the executive branch and shall submit a separate budget to the legislature; and

(2) Not receive general funds after a five year transition period.

SECTION 2. Article VII, section 8, of the Constitution of the State of Hawaii is amended to read as follows:

"Section 8. Within such time prior to the opening of each regular session in an odd-numbered year as may be provided by law, the governor shall submit to the legislature a budget in a form provided by law setting forth a complete plan of proposed expenditures of the executive branch, estimates as provided by law of the aggregate expenditures of the judicial and legislative branches, and anticipated receipts of the State for the ensuing fiscal biennium, together with such other information as the legislature may require. A complete plan of proposed expenditures of the judicial branch for the ensuing fiscal biennium shall be submitted by the chief justice to the legislature in a form and within such time prior to the opening of each regular session in an odd-numbered year as shall be provided by law. A complete plan of proposed expenditures of the University of Hawaii for the ensuing fiscal biennium shall be submitted by the board of regents to the legislature in a form and within such time prior to the opening of each regular session in an odd-numbered year as shall be provided by law. The budget prepared by the governor and the [plan] plans of proposed expenditures prepared by the chief justice and the board of regents shall also be submitted in bill form. The governor [~~shall also~~], upon the opening of each such session, shall also submit bills to provide for such proposed expenditures and for any recommended additional revenues or borrowings by which the proposed expenditures are to be met. The proposed general fund expenditures in the plan of proposed expenditures, including estimates of the aggregate expenditures of the judicial and legislative branches, submitted by the governor shall not exceed the general fund expenditure ceiling established by the legislature under section 9 of this article; provided that proposed general fund expenditures in the plan may exceed such ceiling if the governor sets forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor."

SECTION 3. Article X, section 5, of the Constitution of the State of Hawaii is amended to read as follows:

"Section 5. The University of Hawaii is hereby established as the state university system and constituted a body corporate. It shall have title to all the real and personal property now or hereafter set aside or conveyed to it, which shall be held in public trust for its purposes, to be administered and disposed of as provided by law. The University of Hawaii shall be independent from the executive branch and shall not receive general funds in its annual budget or any other legislative appropriation; provided that the University of Hawaii shall have a transition period of five years from the effective date of this amendment until the complete termination of general funds."

SECTION 4. The question to be printed on the ballot shall be as follows:

"Shall the University of Hawaii be granted complete autonomy from the executive branch of the State?"

SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 6. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	517
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII