STAND. COM. REP. NO. 416

Honolulu, Hawaii

RE:    S.B. No. 967

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Higher Education, to which was referred S.B. No. 967 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to require the Board of Regents of the University of Hawaii (Board of Regents) to submit to the Legislature for approval salary proposals that are equal to, or in excess of, two times the Governor's salary.

     Your Committee received testimony in opposition to this measure from the University of Hawaii System.

     Your Committee finds that the prudent use of public funds is a matter of statewide concern.  In addition, there is concern about the number of employees within the University of Hawaii System whose salaries are in excess of that of the Governor.  According to the University, thirty-three employees currently fall under this category.

     Your Committee recognizes the concerns raised by the University of Hawaii System that requiring approval from the Legislature for a specific candidate may hurt the University's ability to be competitive in its hiring.

     Your Committee has amended this measure by:

     (1)  Amending language to require legislative approval for a salary range, rather than a specific salary, proposed by the Board of Regents that is equal to or in excess of twice that of the Governor, and making conforming amendments;

     (2)  Inserting language to require legislative approval prior to recruitment for any position for which the Board of Regents wishes to prescribe a certain salary range that is equal to or in excess of twice that of the Governor;

     (3)  Removing language that required certain information to be provided in the concurrent resolution for each applicant;

     (4)  Removing the requirement that the Board of Regents receive approval by at a least two-thirds majority vote of both houses of the Legislature; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 967, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 967, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

BRIAN T. TANIGUCHI, Chair