REPORT TITLE:
School Repair & Maintenance


DESCRIPTION:
Establishes the state educational facilities repair and
maintenance special fund to eliminate the backlog of projects
existing on 6/30/00.  Establishes the school physical plant
operations and maintenance special fund to pay for school repairs
and cyclical maintenance projects scheduled after 6/30/00.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3026
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO SCHOOL FACILITIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The State of Hawaii has over $1,700,000,000
 
 2 invested in the construction of school facilities.  Through the
 
 3 department of accounting and general services, repair and
 
 4 maintenance services are performed to assure the health and
 
 5 safety of our school children and to protect this substantial
 
 6 investment.  Within the past six years, however, the severe
 
 7 downturn in the State's economy has made it difficult to fund
 
 8 school repair and maintenance at required levels.  According to
 
 9 the National Association of Higher Education Facilities Officers
 
10 and the American Public Works Association, a minimum of two to
 
11 four per cent of a physical plant's replacement cost should be
 
12 allocated annually for repair and maintenance.  Using the two per
 
13 cent figure to be conservative, this translates to $51,800,000,
 
14 per year, based on 18,500,000 square feet of school facilities
 
15 and a replacement cost of $140 per square foot.  Approximately
 
16 $36,100,000, of this $51,800,000, is attributable to cyclical
 
17 costs, and $15,700,000, is attributable to salaries and current
 
18 expenses.  Where neglect of repair and maintenance needs has
 
19 caused a backlog of projects to accumulate, spending must exceed
 

 
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 1 this minimum recommended level until the backlog has been
 
 2 eliminated.
 
 3      The inconsistency of annual funding has made it impossible
 
 4 to systematically tackle needed repairs.  Deferred projects are
 
 5 costing the State millions more in future costs due to secondary
 
 6 damage.  Additionally, the allocation of funds is based on a
 
 7 formula rather than actual budget projections that reflect
 
 8 cyclical facility maintenance and replacement costs.  In order to
 
 9 assure safe, aesthetic, and structurally sound school facilities,
 
10 the State needs to fund the repair and maintenance backlog and
 
11 provide a consistently funded repair and maintenance system based
 
12 on the best possible facilities maintenance planning and
 
13 practices.
 
14      Consequently, this Act establishes the state educational
 
15 facilities repair and maintenance special fund to eliminate the
 
16 backlog of projects existing on June 30, 2000, establishes the
 
17 school physical plant operations and maintenance special fund to
 
18 pay for school repairs and cyclical maintenance projects
 
19 scheduled after June 30, 2000, specifies how school repair and
 
20 maintenance moneys are to be prioritized and allocated, and
 
21 provides for the establishment of departmental school district
 
22 business and fiscal officers to oversee school facilities
 
23 planning.
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1      It is not the intent of this Act to undermine the authority
 
 2 of schools to prioritize and approve their repair and maintenance
 
 3 needs pursuant to section 302A-1505, Hawaii Revised Statutes, nor
 
 4 to interfere with any partnerships schools have formed with
 
 5 community groups, volunteers, and businesses to obtain donated
 
 6 and discounted repair and maintenance services and materials.
 
 7 The legislature remains committed to the principles of local
 
 8 control and decentralized decision making.
 
 9      SECTION 2.  Chapter 36, Hawaii Revised Statutes, is amended
 
10 by adding two new sections to be appropriately designated and to
 
11 read as follows:
 
12      "§36-     State educational facilities repair and
 
13 maintenance special fund.  (a)  There is created in the treasury
 
14 of the State the state educational facilities repair and
 
15 maintenance special fund, into which shall be deposited a portion
 
16 of all general excise tax revenues collected by the department of
 
17 taxation under section 237-31.  The special fund shall be used
 
18 solely to eliminate the backlog of school repair and maintenance
 
19 projects existing on June 30, 2000.  Expenditures from the
 
20 special fund shall be subject to sections 37-31, and 37-33
 
21 through 37-40.  Appropriations or authorizations from the special
 
22 fund shall be expended by the comptroller.
 
23      (b)  The department of accounting and general services, with
 

 
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 1 the assistance of the department of education, shall review the
 
 2 existing condition of school facilities, and establish current
 
 3 repair and maintenance requirements and overall repair and
 
 4 maintenance priorities.
 
 5      (c)  Factors used to establish current repair and
 
 6 maintenance requirements shall include:
 
 7      (1)  The remaining useful life of the school facility and
 
 8           its major components;
 
 9      (2)  The adjusted life of the school facility and its major
 
10           components after repair or maintenance; and
 
11      (3)  The current and future repair and maintenance
 
12           requirements of the school facility and its components
 
13           based on established industry standards or product
 
14           manufacturer recommendations.
 
15      (d)  Factors used to establish overall repair and
 
16 maintenance priorities shall include:
 
17      (1)  Whether or not a school facility will continue to be
 
18           used for the next twenty-five years; and
 
19      (2)  Whether or not a repair or maintenance project is
 
20           required:
 
21           (A)  For health or safety reasons;
 
22           (B)  To comply with legal mandates; or
 
23           (C)  To comply with current building codes;
 

 
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 1 provided that first priority shall be given to school facilities
 
 2 that were more than twenty-five years of age on July 1, 2000.
 
 3      (e)  The department of accounting and general services shall
 
 4 submit an annual report to the legislature, which shall include a
 
 5 financial statement of the special fund and the status of repair
 
 6 and maintenance projects undertaken pursuant to this section, no
 
 7 later than twenty days prior to the convening of each regular
 
 8 session.  Expenditures for repair and maintenance projects
 
 9 undertaken pursuant to this section shall be posted
 
10 electronically by the department of accounting and general
 
11 services within          days of each project's completion.
 
12      (f)  The comptroller shall develop and implement a strategy
 
13 for the efficient and effective use of government and private-
 
14 sector workforces to ensure that the State receives the best
 
15 value for its money, and to avoid the creation of shortages and
 
16 surpluses in the marketplace by over-purchasing in one segment
 
17 and under-purchasing in another segment of the marketplace at any
 
18 given time.
 
19      (g)  This section shall be repealed on July 1, 2004;
 
20 provided that the comptroller shall transfer to the credit of the
 
21 state general fund, any corresponded or unencumbered balance
 
22 remaining in the state educational facilities repair and
 
23 maintenance special fund, prior to July 1, 2004.
 

 
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 1      §36-     School physical plant operations and maintenance
 
 2 special fund; maintenance schedule.  (a)  There is created in the
 
 3 treasury of the State the school physical plant operations and
 
 4 maintenance special fund, into which shall be deposited a portion
 
 5 of all general excise tax revenues collected by the department of
 
 6 taxation under section 237-31.  The special fund shall be used
 
 7 solely for school repairs and cyclical maintenance projects
 
 8 scheduled after June 30, 2000.  Expenditures from the special
 
 9 fund shall be subject to sections 37-31, and 37-33 through 37-40.
 
10 Appropriations or authorizations from the special fund shall be
 
11 expended by the comptroller.
 
12      (b)  The department of accounting and general services shall
 
13 submit an annual report to the legislature, which shall include a
 
14 financial statement of the special fund and the status of school
 
15 repair and cyclical maintenance projects undertaken pursuant to
 
16 this section, no later than twenty days prior to the convening of
 
17 each regular session.  Expenditures for school repair and
 
18 cyclical maintenance projects undertaken pursuant to this section
 
19 shall be posted electronically by the department of accounting
 
20 and general services within          days of each project's
 
21 completion.
 
22      (c)  The comptroller shall develop and implement a strategy
 
23 for the efficient and effective use of government and private-
 

 
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 1 sector workforces to ensure that the State receives the best
 
 2 value for its money, and to avoid the creation of shortages and
 
 3 surpluses in the marketplace by over-purchasing in one segment
 
 4 and under-purchasing in another segment of the marketplace at any
 
 5 given time.
 
 6      (d)  Every new or renovated school facility constructed
 
 7 after June 30, 2000, shall include a cyclical maintenance
 
 8 schedule prepared by the architect of the facility or the capital
 
 9 improvement project.  The maintenance schedule shall include a
 
10 description of each major component of a facility or capital
 
11 improvement project and the component's maintenance, the starting
 
12 date for a maintenance project, whether or not the maintenance
 
13 project has a recurring cost, the current cost of the maintenance
 
14 project, the future cost of the maintenance project, the useful
 
15 life of the facility or capital improvement project, the adjusted
 
16 life of the facility or capital improvement project, and the
 
17 replacement date of the facility or capital improvement project."
 
18      SECTION 3.  Chapter 302A, Hawaii Revised Statutes, is
 
19 amended as follows:
 
20      1.  By adding three new sections to be appropriately
 
21 designated and to read:
 
22      "§302A-A  Allocation of school repair and maintenance
 
23 moneys.  (a)  Moneys in AGS807, physical plant operations and
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 maintenance, shall be allocated according to departmental school
 
 2 districts based on:
 
 3      (1)  Estimated cyclical and scheduled maintenance costs,
 
 4           which reflect the age and condition of existing school
 
 5           facilities in the State, in the following categories:
 
 6           re-roofing, electrical, athletic facilities, re-
 
 7           surfacing, equipment, exterior painting, plumbing,
 
 8           structural integrity, termite ground treatment, termite
 
 9           tent treatment, interior painting, air conditioning
 
10           change out, and re-carpeting; and
 
11      (2)  Budgeted recurring maintenance, health and safety
 
12           requirements, and legal mandates.
 
13      (b)  The department of accounting and general services, in
 
14 consultation with the department of education, shall prepare a
 
15 six-year program and financial plan based on estimated cyclical
 
16 and scheduled maintenance costs, and budgeted recurring
 
17 maintenance, health and safety requirements, and legal mandates.
 
18 The six-year program and financial plan shall be prepared in
 
19 accordance with the applicable principles and procedures
 
20 contained in section 514A-83.6.
 
21      The six-year program and financial plan shall be submitted
 
22 to the legislature not less than thirty days prior to the
 
23 convening of each regular session of the legislature; provided
 

 
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 1 that the governor may incorporate the six-year program and
 
 2 financial plan required by this subsection into the six-year
 
 3 program and financial plan required by section 37-69, if the plan
 
 4 required by this subsection is incorporated without reductions or
 
 5 restrictions into the plan required by section 37-69.
 
 6      §302A-B  Departmental school district business and fiscal
 
 7 officers.  (a)  The department shall establish at least one
 
 8 permanent full-time equivalent business and fiscal officer
 
 9 position in each departmental school district.
 
10      (b)  Departmental school district business and fiscal
 
11 officers shall be responsible for:
 
12      (1)  Coordinating physical plant operations and maintenance
 
13           activities with the department of accounting and
 
14           general services;
 
15      (2)  Overseeing the school-level minor repairs and
 
16           maintenance accounts at the direction of school
 
17           principals;
 
18      (3)  Planning for capital improvement projects with the
 
19           department of education and the department of
 
20           accounting and general services;
 
21      (4)  Ensuring that school facilities comply with the laws
 
22           and rules regarding:
 
23           (A)  The provision of a free appropriate public
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1                education for exceptional children with
 
 2                disabilities; and
 
 3           (B)  The provision of a free appropriate public
 
 4                education for qualified students with
 
 5                disabilities; and
 
 6      (5)  Assisting the department, individual schools, and
 
 7           school complexes in forming partnerships with community
 
 8           groups, volunteers, and businesses to obtain donated
 
 9           and discounted repair and maintenance services and
 
10           materials.
 
11      §302A-C  Donated repair and maintenance services and
 
12 materials.  (a)  The department may accept donated repair and
 
13 maintenance services and materials, including money to purchase
 
14 these services and materials, on behalf of the department,
 
15 individual schools, or school complexes.  Donations that meet
 
16 current educational specifications or exceed existing educational
 
17 specifications, if applicable, shall be deemed acceptable in
 
18 instances where the donations enhance the school environment or
 
19 improve the administration of school programs in accordance with
 
20 criteria established by the department pursuant to chapter 91.
 
21 For the purposes of this section, "donated repair and maintenance
 
22 services and materials" includes discounted repair and
 
23 maintenance services and materials.
 

 
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 1      (b)  The private source making a donation shall not be
 
 2 liable upon any claim for injury arising from the donated or
 
 3 discounted services or materials; provided that this subsection
 
 4 shall not affect the responsibility or liability of manufacturers
 
 5 of defective products nor shall it reflect the responsibilities
 
 6 of negligent persons who cause dangerous conditions that result
 
 7 in injury."
 
 8      2.  By amending section 302A-1505, Hawaii Revised Statutes,
 
 9 to read:
 
10      "[[]§302A-1505[]]  Prioritization of repair and maintenance.
 
11 (a)  Each school shall meet with the department of accounting and
 
12 general services on an annual basis to advise the department of
 
13 school needs.  Before any repair and maintenance projects for the
 
14 upcoming fiscal year are implemented, each individual school
 
15 administration shall prioritize and approve its repair and
 
16 maintenance needs, and approve the scope of the implementation
 
17 plan for the individual projects.  After schools have prioritized
 
18 their repair and maintenance projects, a statewide list shall be
 
19 prepared, reviewed, and approved by the department of education;
 
20 provided that the department may make adjustments among schools
 
21 and districts.  Each school repair and maintenance priority
 
22 listing shall be approved by the individual school administration
 
23 and submitted to the department of accounting and general
 

 
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 1 services for implementation.  The department of accounting and
 
 2 general services shall implement the school repair and
 
 3 maintenance program in accordance with the priorities set forth
 
 4 by the individual school administration.
 
 5      (b)  Prior to meeting with the department of accounting and
 
 6 general services to advise the department of a school's repair
 
 7 and maintenance needs, the school's principal and the
 
 8 departmental school district business and fiscal officer shall
 
 9 consider the recommendations made by the school/community-based
 
10 management council, if there is such a council at the school; or
 
11 the local school board, if the school is a new century charter
 
12 school.  If there is no school/community-based management council
 
13 or local school board, the school's principal shall appoint a
 
14 standing committee composed of a teacher, a member of the support
 
15 staff, a parent, a student, and a community member.
 
16      (c)  In prioritizing a school's repair and maintenance
 
17 needs, the department of accounting and general services, the
 
18 school's principal, and the departmental school district business
 
19 and fiscal officer shall consider the availability of donated and
 
20 discounted repair and maintenance services and materials that
 
21 will be provided by community groups, volunteers, and
 
22 businesses."
 
23      SECTION 4.  Section 237-31, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§237-31  Remittances.  All remittances of taxes imposed by
 
 3 this chapter shall be made by money, bank draft, check, cashier's
 
 4 check, money order, or certificate of deposit to the office of
 
 5 the department of taxation to which the return was transmitted.
 
 6 The department shall issue its receipts therefor to the taxpayer
 
 7 and shall pay the moneys into the state treasury as a state
 
 8 realization, to be kept and accounted for as provided by law;
 
 9 provided that:
 
10      (1)  The sum from all general excise tax revenues realized
 
11           by the State that represents the difference between
 
12           $45,000,000 and the proceeds from the sale of any
 
13           general obligation bonds authorized for that fiscal
 
14           year for the purposes of the state educational
 
15           facilities improvement special fund shall be deposited
 
16           in the state treasury in each fiscal year to the credit
 
17           of the state educational facilities improvement special
 
18           fund;
 
19      (2)  A sum, not to exceed $5,000,000, from all general
 
20           excise tax revenues realized by the State shall be
 
21           deposited in the state treasury in each fiscal year to
 
22           the credit of the compound interest bond reserve fund;
 
23           [and]
 

 
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 1      (3)  A sum, not to exceed the amount necessary to meet the
 
 2           obligations of the integrated tax information
 
 3           management systems performance-based contract may be
 
 4           retained and deposited in the state treasury to the
 
 5           credit of the integrated tax information management
 
 6           systems special fund.  The sum retained by the director
 
 7           of taxation for deposit to the integrated tax
 
 8           information [[]management[]] systems special fund for
 
 9           each fiscal year shall be limited to amounts
 
10           appropriated by the legislature.  This paragraph shall
 
11           be repealed on July 1, 2004[.];
 
12      (4)  Beginning July 1, 2000, and ending on June 30, 2004,
 
13           the sum of $45,000,000, from all general excise tax
 
14           revenues realized by the State shall be deposited in
 
15           the state treasury in each fiscal year to the credit of
 
16           the state educational facilities repair and maintenance
 
17           special fund.  This paragraph shall be repealed on
 
18           July 1, 2004; and
 
19      (5)  The sum of $35,000,000, from all general excise tax
 
20           revenues realized by the State shall be deposited in
 
21           the state treasury in each fiscal year to the credit of
 
22           the school physical plant operations and maintenance
 
23           special fund."
 

 
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 1      SECTION 5.  There is appropriated out of the state
 
 2 educational facilities repair and maintenance special fund of the
 
 3 State of Hawaii the sum of $45,000,000, or so much thereof as may
 
 4 be necessary for fiscal year 2000-2001, solely to eliminate the
 
 5 backlog of school repair and maintenance projects existing on
 
 6 June 30, 2000.  The sum appropriated shall be expended by the
 
 7 department of accounting and general services; provided that the
 
 8 comptroller shall develop and implement a strategy for the
 
 9 efficient and effective use of government and private-sector
 
10 workforces to ensure that the State receives the best value for
 
11 its money, and to avoid the creation of shortages and surpluses
 
12 in the marketplace by over-purchasing in one segment and under-
 
13 purchasing in another segment of the marketplace at any given
 
14 time.
 
15      SECTION 6.  There is appropriated out of the general
 
16 revenues of the State of Hawaii the sum of $        , or so much
 
17 thereof as may be necessary for fiscal year 2000-2001, to
 
18 establish at least one permanent full-time equivalent (1.00 FTE)
 
19 business and fiscal officer position in each departmental school
 
20 district, as delineated by section 13-1(d), Hawaii Revised
 
21 Statutes.  The sum appropriated shall be expended by the
 
22 department of education.
 
23      SECTION 7.  There is appropriated out of the school physical
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 plant operations and maintenance special fund of the State of
 
 2 Hawaii the sum of $35,000,000, or so much thereof as may be
 
 3 necessary for fiscal year 2000-2001, solely for school repairs
 
 4 and cyclical maintenance projects scheduled after June 30, 2000.
 
 5 The sum appropriated shall be expended by the department of
 
 6 accounting and general services; provided that the comptroller
 
 7 shall develop and implement a strategy for the efficient and
 
 8 effective use of government and private-sector workforces to
 
 9 ensure that the State receives the best value for its money, and
 
10 to avoid the creation of shortages and surpluses in the
 
11 marketplace by over-purchasing in one segment and under-
 
12 purchasing in another segment of the marketplace at any given
 
13 time.
 
14      SECTION 8.  In codifying the new sections added to chapter
 
15 302A, Hawaii Revised Statutes, by section 3 of this Act, the
 
16 revisor of statutes shall substitute appropriate section numbers
 
17 for the letters used in the new sections' designations in this
 
18 Act.
 
19      SECTION 9.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 

 
 
 
 
 
 
 
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 1      SECTION 10.  This Act shall take effect on July 1, 2000.
 
 2 
 
 3                           INTRODUCED BY:  _______________________