A BILL FOR AN ACT

SECTION 1. Hawaii's children are our future. However, many of our students have been forced to learn in classroom environments, which are unacceptable. Peeling paint, broken cabinets, sinks without water, and faulty lighting are just some of the repair and maintenance items we 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 million dollars.

The purpose of this Act is to create a Hawaii School Repair and Maintenance Revolving Fund. This fund is to assist schools in addressing their minor repair and maintenance needs. Repair and maintenance projects may be initiated for preventative or routine maintenance, or to preserve or restore an existing facility to good condition. The funds shall not be used for personnel costs, improvements, or any other purpose not related to the repair and maintenance of facilities.

SECTION 2. Hawaii School Repair and Maintenance Revolving Fund; creation. The Hawaii school repair and maintenance revolving fund is created within the state treasury. The fund shall consist of all moneys collected from persons who have designated a portion of their income tax liability to the fund.

SECTION 3. Income check-off authorized. Any individual whose state income tax liability for any taxable year is $2 or more may designate $2 of such liability to be paid over to the Hawaii school repair and maintenance revolving 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 revolving fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the revolving 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.

SECTION 4. There is appropriated out of the Hawaii school repair and maintenance revolving fund the sum of $1, for fiscal year 2002-2003, to be expended by the department of education for the purposes of section 1 of this Act.

SECTION 5. This Act shall take effect on July 1, 2001.