Page 2-Thursday, July 19, 1979-The Michigan Daily MAY BE UNCONSTITUTIONAL Bill calls for divesting S. African stock By ADRIENNE LYONS A bill which would force the Univer- sity to divest its holdings in firms doing business in South Africa was introduced in the state House of Representatives last Friday. Several state and Univer- sity officials say it is unconstitutional. The bill, introduced to the legislature by Rep. Perry Bullard (ID-Ann Arbor), would prohibit the investment of state funds in U.S. corporations that operate in countries which promote discrimination. Bullard aide Lois Work said the bill is directed at higher education institutions and state retirement and pension organizations. IF the bill passes the Michigan legislature, the University would be forced to divest its holdings in those firms by July 4, 1980, she added. THE BILL may not be valid since the University is controlled by the Michigan constitution, which gives the Regents sole powers over investments, according to Paul Zimmer, assistant attorney general specializing in higher education. Michigan's constitution provides for a Board of Regents for this school, a Board of Trustees for Michigan State University (MSU) and a Board of Governors for Wayne State University. Article 8, Sec. 5 of the constitution fur- ther provides that "Each board shall have general supervision of its in- stitutions and the control and direction of all expenditures from the in- stitution's funds." "This has been construed to mean in large measures, the boards are autonomous and have full control over University funds," Zimmer said. "It would seem that the bill, at least in con- cept, raises some questions. "THIS IS NOT to say the legislature has no control over the University," Zimmer cautioned. Zimmer said the legislature's powers enable it to stipulate the way its appropriations to the University are spent for a specific project, and it can deny the funds if the University refuses to follow the legislature's specifications. University General Counsel Roderick Daane agreed with Zimmer. "In general, such legislation is of dubious constitutionality," Daane said. "The constitution provides the Regents are in charge." Bullard claimed the University is "confusing constitutional autonomy with educational policy" by main- taining South African investments. "I'M SURE the University will fight any legislation we put in," Bullard said, adding that the University can "tell it to the judge" if it doesn't like the legislation. The constitutionality of the bill will likely be challenged in court if it passes, in view of past events. Jim Weber, of the state Department of Education, said in October, 1975, the Michigan Supreme Court ruled on an ap- propriations case between the state and the University. In its decision, "The court said the legislature doesn't have the right to place restrictions on the University," Weber said. The University has holdings in several corporations which do business in South Africa. Despite pleas and protests by interest groups, it has only divested its holdings from one com- pany. MSU Trustees voted to divest all its holdings in such firms last year. Interim University President Allan Smith said there is a serious question of constitutionality in the bill. "We try to get along with the legislature," Smith said, "but on oc- casion we have brought suit." Smith, like the other University officials con- tacted, would not speculate whether the University would sue if Bullard's bill passes. The bill, referred to the House Civil Rights Committee of which Bullard is a member, is similar to another bill Bullard introduced last year. That bill passed committee, but died on the floor. Regents to consider 'U' budget A tuition increase of 8.75 per cent, and OFFICIALS HAD expressed the fear a faculty salary hike of sevenper cent that programs and a higher tuition hike will be recommended for approval to might have been necessary, but In- the University Board of Regents today. terim University President Allan Smith University executive officers have said the program cuts were not been working on preparing a budget necessary. proposal since last Friday, when the Smith said he guessed the percentage state legislature approved a final of state appropriation in the University $14637 million appropriation for the budget was the same as last year-59 University. per cent. Brown: SALT a U.S. monitoring aid EDU IONAL WASHINGTON (AP) - Defense Secretary Harold Brown said yesterday Test Preparation Speiasts Since 1938 the SALT II treaty improves the United For Information Please Call: States' ability to monitor Soviet (313) 662-3149 military activity in the nuclear field. for tco Awns In Other Ciies, CaBut some members of the Senate TOLL FREE: 800-223-178 Foreign Relations Committee ex- pressed skepticism as hearings into the treaty continued. - a / rPi 01 all danskins 25% off OZ this week only man-sat 105 30 thurs-fro 6278 nickels arcade 761-6207 Sen. John Glenn (D-Ohio) questioned the credibility of Brown's assertions that the Soviet compliance with the treaty can be "adequately" verified and that any "significant" violations can be detected. "I THINK I'm pretty well up to speed on this and I still have very serious reservations," Glenn said. "The issue. is indeed whether it is adequately verifiable. I think whether it will pass in the U.S. Senate depends on that. My vote will probably hinge exactly on that." Brown acknowledged that there are some areas in which U.S. capacity to THE MICHIGAN DAILY (UISPS 344-900) Volume LXXXIX, No. 47-S Thursday, July 19, 1979 is edited and managed by students at the University of Michigan. Published daily Tuesday through Sunday morn- ings during the University year at 420 Maynard Street, Ann Arbor, Michigan 48109. Subscription rates: $12 Septem- ber through April (2 semesters);$ $13by mail outside Ann Arbor. Summer ses- sion published Tuesday through Satur- day mornings. Subscription rates: $6.50 in Ann Arbor; $7.00 by mail out- side Ann Arbor. Second class postage paid atAnn Arbor, Michigan. POST- MASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Arbor, MI 48109. verify Soviet compliance with the treaty will be less than certain. But he said any resulting disadvantage will be marginal. "With SALT II, we will have some uncertainty," he said. "Without it we will have no assurance whatever that these levels of strategic forces prescribed by the treaty will not be ex- ceeded. "INDEED WE can be virtually sure they will be, and considerably," he said. Sen. Jacob Javits (R-N.Y.), the panel's ranking Republican, demanded assurances that if the Soviets try to conceal military activity by interfering with U.S. monitoring systems the United States would consider that so serious a violation it would consider terminating the treaty. Brown replied the U.S. reaction would depend on how clear the violation was and how much importance the United States places on what the Soviets try to conceal. When Javits persisted, Brown replied that a violation of the treaty section that bars interference with means for verifying compliance would be considered grounds for pulling out of the pact. CONTACT LENSES Prices for contact lenses Special $178.50 until July 25 Dr. Paul C. 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