(1) Establishing a public-private partnership to coordinate, encourage and assist community efforts to repair and maintain the public schools through Hawaii 3R's, a project of America's Promise Hawaii, a non-profit organization;

(2) Providing a tax incentive to donors of cash or in-kind services;

(3) Providing for a state appropriation to be matched by federal and private contributions;

(4) Providing for an alternative procurement method for expenditure of funds;

(5) Establishing a preference in bidding for state contracts for private contractors who participate in the public-private partnership; and

(6) Appropriating an amount for the salary of a state person within the Department of Accounting and General Services to coordinate repair and maintenance projects of the public-private partnership.

(1) Establishing the pilot program for the public-private partnership in the Department of Accounting and General Services, rather than the Department of Education. Your Committee finds the technical expertise and reporting functions are more appropriate to supervision by the Department of Accounting and General Services. In addition the bill authorizes a position for a coordinator within the Department of Accounting and General Services;

(2) Deleting the requirement that the small purchase method of procurement be applied to purchases by the program. Testimony from the State Procurement Office indicates this provision is neither necessary nor applicable because the purchasing entity is not a state agency;

(3) Deleting the provision providing for a bidding preference for contractors. Rather than instituting a preference mandated by statute, your Committee finds that participation in the program by contractors will be given due consideration in the Performance Information Procurement System, as one of many other performance-based factors;

(4) Narrowing the tax credit to contributions of in-kind services provided by contractors, architects, surveyors, and engineers licensed under chapters 444 and 464, Hawaii Revised Statutes. Your Committee finds that donors of cash and in-kind goods may already qualify for a tax deduction available under existing law. However, in-kind services cannot be similarly deducted, yet these services are critical to the efficient and cost-effective implementation of the program. The tax credit is limited to ten percent of the value of the services, up to a maximum of $40,000 per year. Your Committee notes that this recommended amendment continues to be reviewed by the Department of Taxation and may require further consideration.

(5) Adding a category for matching funds that recognizes the value of services and labor contributed by volunteers skilled in trades, crafts, accounting, etc. This "sweat equity" component is pivotal to the success of the program, which seeks to encourage "ownership" of the public schools by every person in the community;

(6) Deleting the provision that grant applications be considered only twice a year. Your Committee finds that more flexibility should be allowed on this matter;

(7) Requesting an appropriation of $1 for fiscal year 2001-2002 for the school repair and maintenance trust fund, to be matched by federal and private contributions. It is the intent of your Committee that this appropriation will not displace funds appropriated to the Department of Accounting and General Services for routine, day-to-day maintenance and emergency repairs of public schools. Unless the appropriation is in addition to the Department's current budget request, no real progress will be made to reduce the estimated $640,000,000 backlog of repair and maintenance;

(8) Requesting an appropriation in the amount of $1 for a staff coordinator within the Department of Accounting and General Services. The position is equivalent to an Engineer V, SR-26; and

(9) Making other technical, nonsubstantive changes.