STAND. COM. REP. NO. 2294

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2219
                                        S.D. 1




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

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 2219 entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC SCHOOL FACILITIES,"

begs leave to report as follows:

     The purpose of this measure is to exempt the acquisition of
school facilities by lease, lease-purchase, or other transactions
from the law relating to the management of financing agreements.

     In addition, this measure requires the Department of
Education to enter into a lease agreement with the Maui Research
and Technology Park or the Haleakala Ranch Company, or both, for
the acquisition of Kihei charter public high school.

     Testimony in support of the measure was received from South
Maui Learning Ohana and one individual.  Oral testimony was
provided by one individual.  Testimony in opposition to the
measure was received from the Department of Education, Department
of Budget and Finance, and one individual.

     Your Committee finds that new century charter schools
provide a basis for community-based development of public
schools.  A significant obstacle to establishing new century
charter schools is the cost of obtaining facilities for the
schools.  Although chapter 37D, Hawaii Revised Statutes, allows
the Department of Education to enter into transactions for the
acquisition of public school facilities, no request submitted

 
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                                   STAND. COM. REP. NO. 2294
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under this provision has made it through the current approval
process.

     Your Committee agrees that to facilitate the development of
new century charter schools, a more expeditious process is needed
to allow the Department of Education to enter into contracts,
leases, lease-purchase agreements, or other transactions
necessary for the acquisition of public school facilities.

     However, to address the concerns of the Department of Budget
and Finance that bond rating agencies consider such transactions
to be "off-the-books" and to ensure that such transactions are
appropriately identified and monitored as financial liabilities
of the State, your Committee amended the measure to require the
Department of Education to notify the Director of Finance of any
transactions it enters into for the acquisition of public school
facilities.  Additionally, the reference to Maui Research and
Technology Park and Haleakala Ranch Company was deleted.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2219, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2219,
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 and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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