STAND. COM. REP. NO. 2702

                                   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 Ways and Means, to which was referred S.B.
No. 2219, S.D. 1, entitled: 

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

begs leave to report as follows:

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

     Specifically, this bill allows the Department of Education
to acquire school facilities by lease, lease-purchase, or other
transactions:

     (1)  With the approval of the Board of Education, rather
          than the Comptroller; and

     (2)  Upon providing written notice of the transaction to the
          Director of Finance.

     In addition, this bill requires the Department of Education
to enter into a lease agreement for a Kihei charter public high
school, subject to approval by the Board of Education.


 
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                                   STAND. COM. REP. NO. 2702
                                   Page 2


     Your Committee finds that the lengthy approval process for
school construction and renovation projects, the shortage of
money to construct new school facilities and renovate existing
school facilities, and the growing demand for public charter
schools as an alternative to traditional public schools,
necessitate a loosening of restrictions on the management of
financing agreements to acquire school facilities.

     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.
2219, S.D. 1, and recommends that it pass Third Reading.

                                 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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