HOUSE OF REPRESENTATIVES             H.C.R. NO.            85
TWENTIETH LEGISLATURE, 1999                                              
STATE OF HAWAII                                            
                                                                      
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                     HOUSE  CONCURRENT
                        RESOLUTION
  REQUESTING A MANAGEMENT AUDIT OF THE UNIVERSITY OF HAWAII TO
    DETERMINE THE EFFECTS OF THE FLEXIBILITY GRANTED TO THE
    UNIVERSITY UNDER ACT 115, SESSION LAWS OF HAWAII 1998.



 1        WHEREAS, Act 115, Session Laws of Hawaii 1998,
 2   acknowledged that the University of Hawaii makes significant
 3   contributions to the State's economy and has a nearly unlimited
 4   potential to make further contributions; and
 5   
 6        WHEREAS, Act 115 granted the University increased
 7   flexibility in its operations and increased control over its
 8   resources, enabling the university to strike an
 9   "entrepreneurial" pose in seeking and seizing opportunities;
10   and
11   
12        WHEREAS, Act 115 urged decentralized decision-making
13   within the university system so that individual units would
14   benefit from the legislation; and
15   
16        WHEREAS, at the same time, the Act urged the University to
17   implement accountability measures to ensure responsible use of
18   its new authority; and
19   
20        WHEREAS, the effects of Act 115 granting the University
21   increased flexibility should be reviewed by an objective
22   observer; now, therefore,
23    
24        BE IT RESOLVED by the House of Representatives of the
25   Twentieth Legislature of the State of Hawaii, Regular Session
26   of 1999, the Senate concurring, that the Auditor is requested
27   to perform a management audit of the University of Hawaii over
28   a two-year period to determine the effects of the increased
29   flexibility granted to the University of Hawaii, under Act 115,
30   Session Laws of Hawaii 1998, including an examination of the
31   following issues:
32   
33        (1)  All the areas covered in the "Decentralized Decision-
34             Making in the University of Hawaii System", report of
35             the University President to the 1999 Legislature,
36             over the degree of streamlining in decision-making
37             and empowering of the campuses and programs within

 
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 1             the university system; and
 2   
 3        (2)  The management of the community services special
 4             fund, the auxiliary enterprises special fund, the
 5             facilities use revolving fund, and the tuition and
 6             fees special fund, including the uses to which moneys
 7             from these funds were expended;
 8   
 9        (3)  Workers' compensation and unemployment insurance;
10   
11        (4)  The procurement of goods and services, specifically
12             the exemption from chapter 103D, Hawaii Revised
13             Statutes;
14   
15        (5)  Concession agreements, specifically the exemption
16             from chapter 102, Hawaii Revised Statutes;
17   
18        (6)  The Research Corporation of the University of Hawaii;
19   
20        (7)  Claims against the University; and
21   
22        (8)  Accountability measures;
23   
24   and
25   
26        BE IT FURTHER RESOLVED that the Auditor is requested to
27   submit an interim report to the Legislature of the findings and
28   recommendations no later than twenty days before the convening
29   of the Regular Session of 2000, and a final report no later
30   than twenty days before the convening of the Regular Session of
31   2001; and
32   
33        BE IT FURTHER RESOLVED that certified copies of this
34   Concurrent Resolution be transmitted to the Auditor, the
35   Chairperson of the Board of Regents of the University of
36   Hawaii, and the President of the University of Hawaii.   
37 
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40                         OFFERED BY:  ____________________________