STAND. COM. REP. NO. 194________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1389
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.B. No.
1389 entitled: 

     "A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII,
     SECTION 12, AND ARTICLE X, SECTION I, OF THE HAWAII
     CONSTITUTION, TO AUTHORIZE THE ISSUANCE OF SPECIAL PURPOSE
     REVENUE BONDS TO PRIVATE PRIMARY OR SECONDARY EDUCATIONAL
     INSTITUTIONS,"

begs leave to report as follows:

     The purpose of this bill is to propose amendments to the
Constitution of the State of Hawaii to authorize the issuance of
special purpose revenue bonds to private primary or secondary
educational institutions to build or repair facilities.

     Your Committee received testimony in support of this bill
from the Hawaii Association of Independent Schools.  Chaminade
University of Honolulu submitted comments suggesting that this
bill be amended to include private institutions of higher
education like itself.  The Department of Budget and Finance
informed your Committee that the Attorney General had concerns
about this bill and would be submitting separate comments on it.

     Your Committee finds that parents should be given the
maximum amount of freedom legally permissible to decide whether
their children will be educated in a private school or a public

 
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school, regardless of whether the school is sectarian or
nondenominational in character.  Authorizing the issuance of
special purpose revenue bonds to private primary or secondary
educational institutions will promote the ability of parents to
base this important life decision for their children on factors
other than the condition of a private school's physical
facilities.  The underlying philosophy for this bill is one of
parental choice, not religion or private interests.

     In order to expedite the passage of this bill, which must be
referred to your Committee on Judiciary and Hawaiian Affairs and
then to your Committee on Finance, this Committee purposely has
not attempted to address such issues as the establishment of
religion.  Your Committee believes that these issues, if deemed
relevant, can be addressed by your Committee on Judiciary and
Hawaiian Affairs or your Committee on Finance when time permits.

     As affirmed by the record of votes of the members of your
Committee on Education that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1389 and recommends that it pass Second Reading and be referred
to the Committee on Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education,



                                   ______________________________
                                   KEN ITO, Chair

 
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