STAND. COM. REP. NO. 669

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 119
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 119, S.D. 1, entitled:

     "A BILL FOR AN ACT RELATING TO SCHOOL REPAIRS, MAINTENANCE,
     AND IMPROVEMENTS,"

begs leave to report as follows:

     The purpose of this bill is to allow school-level minor
repairs and maintenance accounts to be used for minor
improvements, to increase the amount of these accounts to $20,000
per school, and to allow principals to hire the Department of
Accounting and General Services to perform these minor repairs,
maintenance, and improvements.

     In addition, this bill:

     (1)  Changes the name of school-level minor repairs and
          maintenance accounts to "school-level minor repairs,
          maintenance, and improvements accounts";

     (2)  Prevents unencumbered funds in these accounts from
          lapsing into the general fund at the close of each
          fiscal year;


 
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     (3)  Exempts expenditures from these accounts from the
          Hawaii Public Procurement Code (chapter 103D, Hawaii
          Revised Statutes); and

     (4)  Requires the Department of Accounting and General
          Services to submit a report of expenditures made by the
          schools and the Department of Accounting and General
          Services to the Legislature, by departmental school
          district.

     Your Committee has amended this bill by:

     (1)  Exempting the funds in school-level minor repairs,
          maintenance, and improvement accounts from the law
          relating to the lapsing of unexpended appropriations
          (section 40-66, Hawaii Revised Statutes);

     (2)  Preventing encumbered but unexpended funds in these
          accounts from lapsing into the general fund at the
          close of each fiscal year;

     (3)  Exempting transfers from these accounts to the
          Department of Accounting and General Services from the
          Hawaii Public Procurement Code;

     (4)  Requiring transfers from these accounts to the
          Department of Accounting and General Services to be
          reported to the Legislature; and

     (5)  Making a technical nonsubstantive change for purposes
          of consistency.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
119, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 119, S.D. 2.


 
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                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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