University of Hawaii         

Allows University of Hawaii faculty to engage in certain
entrepreneurial activities without being in violation of the code
of ethics for state employees. 

THE SENATE                              S.B. NO.           545
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 84, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "84-    University of Hawaii.  (a)  Nothing in this chapter
 5 shall be construed to prohibit faculty or managers of the
 6 University of Hawaii from undertaking or facilitating
 7 consultative, entrepreneurial, or economic development activities
 8 that are consistent with applicable provisions of university
 9 policy or a collective bargaining agreement, and that are
10 consistent with the public interest in preserving the fairness,
11 accuracy, reliability, and trustworthiness of the education and
12 research conducted by the university, even if the activities:
13      (1)  Result in economic gain to the faculty or the
14           university;
15      (2)  Involve non-cost or reimbursed use of state facilities;
16      (3)  Involve the use of state titles; or
17      (4)  Involve disclosed conflicts of interest.
18      (b)  The state ethics commission shall accord a presumption
19 of validity to faculty consultative, entrepreneurial, or economic

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                                     S.B. NO.           545

 1 development activities; provided that the activities and each
 2 faculty member's interest in the activities are accurately
 3 described in prior and annual disclosures made to the president
 4 of the university or the president's designee and to involved
 5 academic departments; provided that the disclosures shall be
 6 public records; and provided further that university policies and
 7 the applicable collective bargaining agreement contain provisions
 8 governing review and correction of activities inconsistent with
 9 generally accepted standards of academic ethics.  Activities not
10 disclosed or otherwise not subject to effective university review
11 shall not be accorded a presumption of validity.
12      (c)  The presumption of validity may be rebutted by a clear
13 and convincing showing that:
14      (1)  The activity was not accurately described or disclosed
15           so as to prevent review;
16      (2)  University review was incapable of identifying serious
17           breaches of academic protocol;
18      (3)  The activity in question had no reasonable likelihood
19           of resulting in improvements in the state economy; or
20      (4)  The public interest in the fairness, accuracy,
21           reliability, and trustworthiness of the education and
22           research conducted by the university was materially
23           compromised.

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                                     S.B. NO.           545

 1      (d)  The state ethics commission shall consider university
 2 efforts at economic development to be a legitimate academic
 3 service function that is encouraged by the legislature in the
 4 public interest, and that the regents of the university are
 5 primarily responsible for ensuring that university activities
 6 conform to generally accepted standards of academic ethics."
 7      SECTION 2.  New statutory material is underscored.
 8      SECTION 3.  This Act shall take effect upon its approval.
10                           INTRODUCED BY:  _______________________