Establishes the school-level minor repairs and maintenance special fund to provide moneys for school-level minor repairs and maintenance accounts. Allows an individual whose state income tax credit for any taxable year is $2 or more to designate $2 of the same to be paid over to the special fund.

(HB1666 HD1)

A BILL FOR AN ACT

SECTION 1. Hawaii’s children are our future. Many of our students, however, are being forced to learn in classroom environments that are unacceptable. Peeling paint, broken cabinets, sinks without water, and faulty lighting are just some of the repair and maintenance problems the State must address. A run-down classroom or school building directly affects the morale of both teachers and students. The repair and maintenance backlog for Hawaii’s public schools is over $600,000,000.

The purpose of this Act is to create the Hawaii school-level minor repairs and maintenance special fund. This special fund will assist schools in addressing their minor repair and maintenance needs by providing an additional source of funding for the school-level minor repairs and maintenance accounts established by the department of education.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-     Hawaii school-level minor repairs and maintenance special fund. There is established within the state treasury a special fund to be known as the Hawaii school-level minor repairs and maintenance special fund, into which shall be deposited all moneys collected pursuant to section 235-102.5, and any other moneys received by the department in the form of appropriations, grants, and donations for school-level minor repairs and maintenance. The special fund shall be administered by the department and used to fund school-level minor repairs and maintenance."

SECTION 3. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows:

"§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $2 or more may designate $2 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department of taxation. In the case of a joint return of a husband and wife having a state income tax liability of $4 or more, each spouse may designate that $2 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included which clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked.

(b) Notwithstanding any law to the contrary, individual whose state income tax credit for any taxable year is $2 or more may designate $2 of the credit to be deposited into the Hawaii school-level minor repairs and maintenance special fund, when submitting a state income tax return to the department of taxation. In the case of a joint return of a husband and wife having a state income tax credit of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the special fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked."

SECTION 4. Section 302A-1504, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The department shall establish school-level minor repairs and maintenance accounts for the use of each public school, which shall not exceed $8,000 per school. The accounts shall be [comprised] composed of funds appropriated to the department out of the Hawaii school-level minor repairs and maintenance special fund established pursuant to section 302A-     for school-level minor repairs and maintenance and shall not be used for any other purpose, nor shall any other funds be deposited into the accounts.

(b) Funds in this account shall be expended at the direction of the school principal to contract for minor repairs and maintenance. Any funds appropriated for this purpose that are unencumbered at the close of each fiscal year shall lapse into the [general fund.] Hawaii school-level minor repairs and maintenance special fund."

SECTION 5. There is appropriated out of the Hawaii school-level minor repairs and maintenance special fund of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2001-2002 to carry out the purposes of this Act.

The sum appropriated shall be expended by the department of education for the purposes of the special fund.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2001; provided that section 4 shall apply to taxable years beginning after December 31, 2000.