STAND. COM. REP. NO. 3003

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2820
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Education and Technology and Ways and
Means, to which was referred H.B. No. 2820, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

beg leave to report as follows:

     The purpose of this measure is to propose amendments to
article VII, section 12 and article X, section 12, of the Hawaii
Constitution, to authorize the issuance of special purpose
revenue bonds to finance the construction and renovation of
educational facilities at independent not-for-profit elementary
schools, secondary schools, universities, and colleges.

     Testimony in support of the measure was received from the
Hawaii Association of Independent Schools and Chaminade
University.  The Department of the Attorney General submitted
concerns about the measure.  The Department of Budget and Finance
submitted comments on the measure.

     Your Committees have concerns about using special purpose
revenue bonds to assist private schools in constructing and
renovating their educational facilities because of this State's
strong history against appropriating public funds for private
schools and because of the uncertainties raised by possible
violations of the Establishment Clause, Free Exercise Clause, and
the First Amendment of the U.S. Constitution.  


 
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                                   STAND. COM. REP. NO. 3003
                                   Page 2


     Upon further consideration, your Committees amended the
measure by removing its contents and instead requesting the
Legislative Reference Bureau to conduct a study on how private
schools may be able to work together to create a consortium to
finance the construction and renovation of educational facilities
at independent, not-for-profit elementary schools, secondary
schools, universities, and colleges in Hawaii.

     As affirmed by the records of votes of the members of your
Committees on Education and Technology and Ways and Means that
are attached to this report, your Committees are in accord with
the intent and purpose of H.B. No. 2820, H.D. 1, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as H.B. No. 2820, H.D. 1, S.D. 1, and be referred
to the Committee on Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Technology and Ways and Means,



____________________________       ______________________________
CAROL FUKUNAGA, Co-Chair           DAVID Y. IGE, Chair




____________________________
ANDREW LEVIN, Co-Chair

 
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