STAND. COM. REP. NO.1174

Honolulu, Hawaii

, 2001

RE: H.B. No. 472

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 472, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOLS,"

begs leave to report as follows:

The purpose of this measure is to establish the Hawaii School Repair and Maintenance Trust Fund as a separate fund of Hawaii 3R's (a project of America's Promise, a nonprofit organization) for the coordination of private and federal efforts to repair and maintain public schools, and to establish a tax credit for in-kind contributions.

Your Committee heard testimony in support of the measure from the U.S. Pacific Command, Department of Education, Department of Accounting and General Services, Department of Taxation, Hawaii State Teachers Association, Hawaii 3R's, United Public Workers, Chamber of Commerce of Hawaii, and General Contractors Association of Hawaii. Technical comments were provided by the Tax Foundation of Hawaii.

Your Committee finds that the measure would create a model public-private partnership designed to help alleviate the State's $640 million backlog in the repair and maintenance of public schools. Given the variety of demands on scarce public resources, such synergistic solutions are a creative and necessary means of leveraging scarce public resources to tackle this critical problem.

Your Committee has amended the measure to:

(1) Delete the section identifying the program as a pilot project;

(2) Clarify that Hawaii 3R's is a project of America's Promise, a nonprofit organization;

(3) Substitute "principals" for "teachers" in naming stakeholders on the advisory board in section 2(d);

(4) Clarify that non-cash donations of materials or labor will be tracked but won't be specifically accounted for in the fund itself;

(5) Change from $2,500,000 to $250,000 the amount after which the Department of Accounting and General Services may discontinue certifying contributions for purposes of the tax credit per year; and

(6) Clarify that the funding mechanism will be a grant-in-aid under chapter 42F, Hawaii Revised Statutes.

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. 472, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 472, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

NORMAN SAKAMOTO, Chair