STAND. COM. REP. NO. 2303

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2835
                                        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. 2835 entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to permit the Department of
Education to retain and expend federal indirect overhead
reimbursements for discretionary grants.

     In addition, the measure establishes a federal grants search
and application special fund for such reimbursements.  The
measure also allows the Superintendent of Education to approve
expenditures in excess of the amount appropriated from a trust
fund.

     Testimony in support of the measure was received from the
Department of Education, Department of Budget and Finance, and
The Hawaii Business Roundtable.

     The Department of Education testified that they perceive no
real incentive to actively pursue federal or private funding for
education as additional moneys are used to offset what is
received from the State.  This measure attempts to remedy that
situation by providing the Department of Education with increased
and clarified authority over its federal and trust funds and with
a means to search for and keep such funds.


 
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                                   STAND. COM. REP. NO. 2303
                                   Page 2


     Your Committee amended the measure by changing the federal
grants search and application special fund to a revolving fund.
In addition, the requirement for reports to be submitted to the
legislature twenty-days prior to convening was eliminated to
provide the Department of Education flexibility in when to
complete the report.  Technical, nonsubstantive changes were made
for clarity.

     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. 2835, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2835,
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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