STAND. COM. REP. NO.861

Honolulu, Hawaii

, 2001

RE: H.B. No. 472

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. 472, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOLS,"

begs leave to report as follows:

The purpose of this bill is to establish a public/private partnership to coordinate, encourage, and assist all stakeholders in the task of eliminating the $640,000,000 backlog of repair and maintenance (R&M) projects in Hawaii's public schools. More specifically, this bill:

(1) Establishes a pilot project within the Department of Accounting and General Services (DAGS) creating a public/private partnership to develop programs to eliminate the backlog of R&M projects in the public schools;

(2) Creates a Trust Fund for Hawaii 3R's, a nonprofit organization, for the funding of R&M projects;

(3) Provides tax incentives to donors of cash or services;

(4) Provides for state appropriations to be matched by federal and private contributions; and

(5) Makes an appropriation to the Trust Fund.

The senior U.S. Senator from Hawaii, DAGS, Hawaii 3R's, America's Promise Hawaii, General Contractors Association of Hawaii, Hawaii Business Roundtable, Hawaii State Teachers Association, Zippy's, Inc., and many individuals submitted testimony in support of this bill. The Department of Education submitted testimony in support of the intent of this bill. The Department of Budget and Finance and Department of Taxation submitted testimony in opposition to this bill. Tax Foundation of Hawaii submitted comments on this bill.

Your Committee has amended this bill by:

(1) Specifying that DAGS shall be the expending agency, and contract with Hawaii 3R's to provide grants and contracts supported by the trust fund;

(2) Defining "value of contributions of in-kind services";

(3) Clarifying that if a deduction is taken under section 62 (adjusted gross income defined) of the Internal Revenue Code, that no tax credit shall be allowed for that portion of a contribution made;

(4) Requiring the Hawaii School Maintenance and Repair Advisory Board to maintain records of those eligible for credit and amounts contributed, and requiring DAGS to verify contributions;

(5) Requiring DAGS to issue certificates which state the amount of contribution, verifies license, and verifies that the taxpayer is not delinquent in payments, and clarifying that the taxpayer must not be delinquent to qualify for the tax credit; and

(6) Prohibiting DAGS from certifying more than $2,500,000 in total in-kind contributions per year, and prohibiting the State from providing more than 10 percent of that total ($250,000) in tax credits for in-kind services per year; and

(7) Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

 

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. 472, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 472, H.D. 2.

 

 

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

____________________________

DWIGHT Y. TAKAMINE, Chair