HB1666 HD2 HSCR853

STAND. COM. REP. NO.853

Honolulu, Hawaii

, 2001

RE: H.B. No. 1666

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1666, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE REPAIR AND MAINTENANCE OF SCHOOLS,"

begs leave to report as follows:

The purpose of this bill is to assist the minor repair and maintenance process for schools by:

(1) Establishing the Hawaii School-Level Minor Repairs and Maintenance Special Fund (Special Fund) to be administered by the Department of Education (DOE);

(2) Establishing two School-Level Minor Repairs and Maintenance Accounts:

(a) The first account to be composed of general funds appropriated to DOE; and

(b) The second account to be composed of funds appropriated out of the Special Fund;

and

(3) Including a check-off box on State income tax returns to allow taxpayers to designate $2 or more of the refund amount into the Special Fund.

The Hawaii Government Employees Association supported this measure. The Department of Accounting and General Services, the Office of the Lieutenant Governor, DOE, and General Contractors Association of Hawaii supported the intent of this measure.

The Department of Budget and Finance and the Department of Taxation opposed this measure. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by:

(1) Changing references to a tax "credit" to a tax "refund";

(2) Removing the ability for the Special Fund to receive appropriations and limiting the Special Fund to amounts received from check-off boxes on income tax returns, donations, and grants;

(3) Specifying that two Minor Repair and Maintenance accounts be established; and

(4) Providing that any general and special funds at the close of each fiscal year shall be re-credited to their respective accounts instead of lapsing.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1666, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1666, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair