Allows taxpayers to donate $2 from their tax refund to the school-level minor repairs and maintenance accounts. (SD2)

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 $600,000,000.

The purpose of this Act is to allow taxpayers to donate $2 from their tax refund to the school-level minor repairs and maintenance accounts.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Income check-off authorized. (a) Any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited in the school-level minor repairs and maintenance accounts under section 302A-1504, 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 refund of $4 or more, each spouse may designate that $2 be paid to the accounts.

(b) The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the school-level minor repairs and maintenance accounts on the tax return. 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 3. 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 of funds appropriated to the department for school-level minor repairs and maintenance, and funds donated by taxpayers under section 235- , 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 not lapse into the general fund."

SECTION 4. There is appropriated out of the school-level minor repairs and maintenance accounts the sum of $1, or so much thereof as may be necessary, for fiscal year 2002-2003, to be expended by the department of education for the repair and maintenance of public schools.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2001.