Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 1580, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to propose a constitutional amendment to allow the issuance of Special Purpose Revenue Bonds (SPRBs) to assist private, secular schools with the financing of facilities.

The Hawaii Association of Independent Schools submitted testimony in support of this bill with proposed amendments. The Department of Budget and Finance and Hawaii State Teachers Association submitted testimony in opposition to this bill.

Your Committee finds that many private schools have very limited budgets and are unable to keep their facilities in proper shape. SPRBs would give these schools a financing mechanism by which they could fund such projects. It is in the State's interest to ensure that all of Hawaii's children have a safe school environment that is conducive to learning, whether attending public or private schools. Furthermore, SPRBs are not a financial obligation of the State, and their issuance for the purpose of this bill will result in negligible costs, if any, to the State.

Upon further consideration, your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1580, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1580, S.D. 2, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.