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

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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
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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.

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