University of Hawaii

Removes the University of Hawaii from the executive branch.
Expands the powers of the board of regents and increases the
terms of the regents.

THE SENATE                              S.B. NO.           540
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 26-4, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "26-4 Structure of government.  Under the supervision of
 4 the governor, all executive and administrative offices,
 5 departments, and instrumentalities of the state government and
 6 their respective functions, powers, and duties shall be allocated
 7 among and within the following principal departments that are
 8 hereby established:
 9      (1)  Department of human resources development (Section
10           26-5)
11      (2)  Department of accounting and general services (Section
12           26-6)
13      (3)  Department of the attorney general (Section 26-7)
14      (4)  Department of budget and finance (Section 26-8)
15      (5)  Department of commerce and consumer affairs (Section
16           26-9)
17      (6)  Department of taxation (Section 26-10)
18     [(7)  University of Hawaii  (Section 26-11)
19      (8)] (7)  Department of education (Section 26-12)

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 1     [(9)] (8)  Department of health (Section 26-13)
 2    [(10)] (9)  Department of human services (Section 26-14)
 3    [(11)] (10)  Department of land and natural resources (Section
 4           26-15)
 5    [(12)] (11)  Department of agriculture (Section 26-16)
 6    [(13)] (12)  Department of Hawaiian home lands (Section 26-17)
 7    [(14)] (13)  Department of business, economic development, and
 8           tourism (Section 26-18)
 9    [(15)] (14)  Department of transportation (Section 26-19)
10    [(16)] (15)  Department of labor and industrial relations
11           (Section 26-20)
12    [(17)] (16)  Department of defense (Section 26-21)
13    [(18)] (17)  Department of public safety (Section 26-14.6)" 
14      SECTION 2.  Section 26-52, Hawaii Revised Statutes, is
15 amended to read as follows:
16      "26-52  Department heads and executive officers.  The
17 salaries of the following state officers shall be as follows:
18      (1)  The salary of the superintendent of education shall be
19           $90,041 a year;
20     [(2)  The salary of the president of the University of Hawaii
21           shall be set by the board of regents;
22      (3)] (2)  The salaries of all department heads or executive
23           officers of the departments of accounting and general

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 1           services, agriculture, attorney general, budget and
 2           finance, business, economic development, and tourism,
 3           commerce and consumer affairs, Hawaiian home lands,
 4           health, human resources development, human services,
 5           labor and industrial relations, land and natural
 6           resources, public safety, taxation, and transportation
 7           shall be $85,302 a year; and
 8     [(4)] (3)  The salary of the adjutant general shall be
 9           $85,302 a year; provided that if this salary is in
10           conflict with the pay and allowance fixed by the tables
11           of the regular army or air force of the United States,
12           the latter shall prevail."
13      SECTION 3.  Section 40-53, Hawaii Revised Statutes, is
14 amended by amending subsection (a) to read as follows:
15      "(a)  All payments for permanent settlements, specific and
16 all other salaries, excepting that of the comptroller and deputy
17 comptroller and salaries for the University of Hawaii, shall be
18 drawn by the comptroller, payable to each individual to whom the
19 State is directly indebted, except as provided for in section
20 40-58.  No permanent settlements nor salary checks shall be paid
21 by the director of finance until the person in whose favor the
22 check is drawn shall have indorsed the person's signature
23 thereon.  The salaries of the comptroller and deputy comptroller

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 1 shall be paid by the director when due as in this chapter
 2 provided upon checks approved by the governor."
 3      SECTION 4.  Section 304-3, Hawaii Revised Statutes, is
 4 amended to read as follows:
 5      "304-3 Regents; appointment; tenure; qualifications;
 6 meetings.  (a)  The affairs of the university shall be under the
 7 general management and control of the board of regents consisting
 8 of three ex officio members who shall be the lieutenant governor,
 9 the president of the alumni association of the university, and a
10 member of the board of education selected by the board of
11 education, and twelve members who shall be appointed [and may be
12 removed] by the governor.  No more than six of the appointed
13 members shall be members of the same political party and at least
14 part of the membership of the board shall represent geographic
15 subdivisions of the State.  One member shall be a University of
16 Hawaii student at the time of the initial appointment.  The
17 student member may be reappointed for one additional term even
18 though the member is no longer a student at the time of the
19 reappointment.  The term of each member shall be for [four] eight
20 years; provided that the term of the student member shall be for
21 two years.  Appointed members other than the student member may
22 be reappointed, but shall not serve more than a total of sixteen
23 years, inclusive of service prior to the effective date of this

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 1 section.
 2      (b)  In the selection of the appointed members, the governor
 3 shall consult an advisory committee composed of:
 4      (1)  The speaker of the house of representatives and two
 5           public members appointed by the speaker;
 6      (2)  The president of the senate and two public members
 7           appointed by the president;
 8      (3)  Two public members appointed by the governor;
 9      (4)  The chair of the board of regents;
10      (5)  A member of the university faculty chosen by the
11           academic senate of the university;
12      (6)  A member of the university faculty chosen by the union
13           representing the university faculty; and
14      (7)  A member chosen by the student body presidents of the
15           university.
16      Members of the advisory committee shall serve for four-year
17 terms, except that one each of the initially-appointed public
18 members shall serve for two years.
19      (c)  The advisory committee shall be convened by the chair
20 of the board of regents from time to time, and in advance of
21 vacancies.  The advisory committee shall prepare for the
22 governor's consideration a list of proposed board nominees
23 numbering not less than the number of expected vacancies plus

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 1 two, with annotations as to the qualifications of each nominee.
 2 Nominees appointed to the board of regents by the governor shall
 3 be subject to the advice and consent of the senate.
 4      Vacancies on the board shall be filled on an interim basis
 5 by majority vote of the board as then constituted, pending the
 6 governor's appointment of a permanent successor for the remainder
 7 of the term pursuant to the procedure in this section.  Appointed
 8 members may be removed by action of court under standards
 9 applicable to the removal of trustees.
10      Members appointed to fill the five positions expiring in
11 June, 1999, other than the student member, at their first
12 meeting, by means of chance shall designate three members to
13 serve for four-year terms and two members to serve six-year
14 terms.  Thereafter, all appointments, other than the student
15 member, shall be for eight years.
16      (d)  Except as otherwise provided by statute, state officers
17 shall be eligible to appointment and membership.  Every member
18 may serve beyond the expiration date of the member's term of
19 appointment until the member's successor has been appointed and
20 has qualified[.]; provided that no member shall serve longer than
21 the maximum term specified in this section.  The board shall at
22 its first meeting after June 30, elect a chairperson and vice-
23 chairperson, who shall serve until adjournment of its first

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 1 meeting after June 30 of the next year or thereafter until their
 2 successors are appointed and have qualified and whose election
 3 shall be immediately certified by the board to the chief election
 4 officer. The board shall appoint a secretary, who shall not be a
 5 member of the board.  The president of the university shall act
 6 as executive officer of the board.  The board shall meet not less
 7 often than ten times annually, and may from time to time meet in
 8 each of the counties of Hawaii, Maui, and Kauai.
 9      (e)  The appointed members of the board shall [serve without
10 pay but] receive an annual stipend of $25,000, or less at the
11 discretion of the board, and shall be entitled to their traveling
12 expenses within the State when attending meetings of the board or
13 when actually engaged in business relating to the work of the
14 board.  Members of the board shall not be considered employees of
15 the State as a result of their having received any stipend or
16 expenses for actions taken in their capacities as regents."
17      SECTION 5.  Section 304-4, Hawaii Revised Statutes, is
18 amended to read as follows:
19      "304-4 Powers of regents; official name.(a)  The board
20 of regents shall have management and control of the general
21 affairs, and exclusive jurisdiction over the internal
22 organization and management, of the university.  The board shall
23 appoint and may remove an executive officer to be known as the

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 1 president of the University of Hawaii.  It may appoint a
 2 treasurer and such other officers as it deems necessary.  It may
 3 authorize any officer, elected or appointed by it, to approve and
 4 sign on its behalf any voucher or other document which the board
 5 may approve and sign.  It may delegate to the president or the
 6 president's designee the authority to render the final decision
 7 in contested case proceedings subject to chapter 91, as it deems
 8 appropriate. [It]
 9      (b)  The board may purchase or otherwise acquire lands,
10 buildings, appliances, and other property for the purposes of the
11 university and expend such sums of money as may be from time to
12 time placed at the disposal of the university from whatever
13 source.  All lands, buildings, appliances, and other property so
14 purchased or acquired shall be and remain the property of the
15 university to be used in perpetuity for the benefit of the
16 university.  The board of regents, in accordance with law, shall
17 manage the inventory, equipment, surplus property, and
18 expenditures of the university and, subject to chapter 91, may
19 adopt rules, further controlling and regulating the same.
20      [(b)] (c)  The board may charge resident and nonresident
21 tuition fees for regular courses of instruction at any University
22 of Hawaii campus, including any community college.
23      The board may also charge other fees for special programs of

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 1 instruction, as well as laboratory fees, course fees, fees for
 2 student activities, and an information technology user fee.  The
 3 board may charge other fees for summer session or evening
 4 courses, including differential fees for nonresident students.
 5      The board may waive entirely or reduce the tuition fee or
 6 any of the other fees for graduate teaching and research
 7 assistants.  The board may enter into agreements with government
 8 and university officials of any other state or foreign country to
 9 provide for reciprocal waiver of the nonresident tuition and fee
10 differential.  The board may waive the nonresident tuition and
11 fee differential for selected students from Pacific and Asian
12 jurisdictions when their presence would be beneficial to the
13 university or the State.  The board may waive entirely or reduce
14 the tuition fee or any of the other fees for students, resident
15 or nonresident.  The board shall determine the percentage of
16 allowable tuition and fee waivers for financial need and other
17 university priorities.  These tuition waivers and waivers of the
18 nonresident tuition and fee differential shall be awarded in
19 accordance with guidelines established by the board.
20      [(c)] (d)  The board shall adopt the necessary rules
21 defining residence for tuition purposes herein; provided that the
22 basic rule shall be that a student shall qualify for the resident
23 tuition fee only if the following criteria are met:

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 1      (1)  The adult student, or in the case of a minor student,
 2           the student's parents or guardians, has been a bona
 3           fide resident of this State for at least twelve
 4           consecutive months next preceding the student's first
 5           day of officially scheduled instruction for any
 6           semester or term in which the student is enrolling at
 7           the particular college or campus; and
 8      (2)  The adult or minor student has not been claimed as a
 9           dependent for tax purposes for at least twelve months
10           next preceding the student's first day of officially
11           scheduled instruction for any semester or term in which
12           the student is enrolling at the particular college or
13           campus by the student's parents or guardians who are
14           nonresidents of the State; provided that this provision
15           shall not apply in cases where the parent claiming the
16           student as a dependent is entitled to do so under a
17           child support order or agreement issued or entered into
18           in conjunction with a divorce proceeding or legal
19           separation agreement, and the other parent and the
20           student meet the criteria set forth in paragraph (1).
21      [(d)] (e)  The board shall develop internal policies and
22 procedures for the procurement of goods, services, and
23 construction, consistent with the goals of public accountability

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 1 and public procurement practices, but not subject to chapter
 2 103D.  However, where possible, the board is encouraged to use
 3 the provisions of chapter 103D; provided that the use of one or
 4 more provisions of chapter 103D shall not constitute a waiver of
 5 the exemption of chapter 103D and shall not subject the board to
 6 any other provision of chapter 103D.
 7      [(e)] (f)  The board may enter into concession agreements
 8 without regard to chapter 102.
 9      (g)  The board shall manage the payroll for university
10 employees consistent with applicable collective bargaining
11 agreements, disburse funds and moneys to all university
12 contractors, mechanics, laborers, and suppliers, and manage all
13 related accounting.
14      (h)  The board shall bargain collectively with its employees
15 who are entitled to bargain collectively under chapter 89.       
16      (i)  The board shall possess the power of eminent domain for
17 the limited purpose of the condemnation of property necessary for
18 an educational purpose.
19      (j)  The board shall have the power to finance the purchase
20 of equipment for university buildings pursuant to the agreement
21 reached under section 28 of Act 115, Session Laws of Hawaii 1998.
22      (k)  The board shall have the power to use financing
23 agreements under chapter 37D, pursuant to the agreement reached

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 1 under section 29 of Act 115, Session Laws of Hawaii 1998.
 2      (l)  The board shall have the power to issue bonds in its
 3 own name for any traditional educational purpose, pledging such
 4 of the assets or revenue of the university as it shall deem
 5 proper, but the bonds in no event shall pledge or be construed to
 6 pledge the faith or credit of the State.                         
 7      (m)  The board shall have the power to classify university
 8 employees without regard to chapters 76 and 77.
 9      [(f)] (n)  The official name of the board shall be Board of
10 Regents, University of Hawaii, and the board shall adopt and use
11 a common seal by which all official acts shall be authenticated."
12      SECTION 6.  Section 26-11, Hawaii Revised Statutes, is
13 repealed.
14      ["26-11  University of Hawaii.(a)  The University of
15 Hawaii shall be headed by an executive board to be known as the
16 board of regents.
17      The board shall consist of twelve members.  No more than six
18 of the members shall be members of the same political party and
19 at least part of the membership of the board shall represent
20 geographic subdivisions of the State.  At least one member shall
21 be a University of Hawaii student at the time of the initial
22 appointment.  This member may be reappointed for one additional
23 term even though the member may no longer be a student at the

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 1 time of reappointment.
 2      The board shall have power, in accordance with the
 3 Constitution of the State and with law, to formulate policy, and
 4 to exercise control over the university through its executive
 5 officer, the president of the university.  The board shall have
 6 exclusive jurisdiction over the internal organization and
 7 management of the university.
 8      (b)  The board of regents shall appoint and may remove an
 9 executive officer to be known as the president of the University
10 of Hawaii.
11      The University of Hawaii as heretofore constituted as a body
12 corporate is continued as the University of Hawaii established by
13 this chapter."]
14      SECTION 7.  Statutory material to be repealed is bracketed.
15 New statutory material is underscored.
16      SECTION 8.  This Act shall take effect upon its approval.
18                           INTRODUCED BY:  _______________________