CONFERENCE COMMITTEE REP. NO.45
Honolulu, Hawaii
, 2001
RE: S.B. No. 493
S.D. 2
H.D. 2
C.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 493, S.D. 2, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOLS,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to establish:
(1) The Hawaii School Repair and Maintenance Fund as a separate fund of Hawaii 3R's, a nonprofit corporation, for the coordination of private and federal efforts to repair and maintain public schools; and
(2) A tax credit.
Your Committee endorses the concept of forging a public private partnership, utilizing the community's resources and "sweat equity" to support our public schools. It is expected and intended that as the program develops, the State will realize increasing savings by matching limited repair and maintenance moneys with resources from private, federal, county, and community sources. This measure immediately doubles the State's investment at the outset and your Committee finds that there is potential for even greater leveraging in the future.
Your Committee has amended the measure by:
(1) Lowering the estimated repair and maintenance backlog from "more than $640,000,000" to "more than $600,000,000";
(2) Changing the Hawaii 3R's nonprofit fiscal agent of the fund from America's Promise to Helping Hands Hawaii;
(3) Adding pest control operators licensed under chapter 460J, Hawaii Revised Statutes, to the list of licensed contractors, architects, engineers, surveyors, and landscape architects who are authorized to take a tax credit in exchange for the donation of their professional services to the repair and maintenance program;
(5) Clarifying that the aggregate value of the contributions of in-kind services claimed by a taxpayer shall not exceed $40,000;
(6) Adding a provision defining the value of contributions of in-kind services as the fair market value of uncompensated labor as determined by the Department of Accounting and General Services;
(7) Deleting a provision which prohibited deductions for that portion of the contributions paid or incurred for the taxable year that is equal to the amount of the credit;
(8) Adding a provision requiring:
(A) The Department of Accounting and General Services to maintain records of the names of taxpayers eligible for the credit and the total value of in-kind services contributed for the repair and maintenance of public schools for the taxable year;
(B) The Department of Accounting and General Services to verify all accounts, total all contributions that the department certifies, and, upon each determination, issue a certificate to the taxpayer certifying:
(i) The amount of the contribution;
(ii) That the taxpayer is licensed under chapter 444, 460J, or 464, Hawaii Revised Statutes; and
(iii) That the taxpayer has obtained a current and valid certificate signed by the director of taxation, showing that the taxpayer does not owe the State any delinquent taxes, penalties, or interest; and
(C) The Department of Accounting and General Services to immediately discontinue certifying contributions and notify the Department of Taxation when the total amount of certified contributions reaches $2,500,000; and
(9) Adding a provision capping the amount of tax credits for contributions of in-kind services in Hawaii for the repair and maintenance of schools at $250,000;
(10) Requiring that funds appropriated by the State pursuant to this Act be matched by private, county, and federal contributions and establishing criteria for matching funds;
(11) Authorizing Helping Hands Hawaii to expend the principal funds in the Hawaii School Repair and Maintenance Fund;
(12) Providing that the State shall not be liable for the operation or solvency of Helping Hands Hawaii or Hawaii 3R's;
(13) Requiring that the comptroller submit an annual report on the progress of the Hawaii School Repair and Maintenance Fund to the regular sessions of the Legislature;
(14) Appropriating $500,000 each year for the fiscal years of 2001-2002 and 2002-2003 as a grant-in-aid to Helping Hands Hawaii for the High School Repair and Maintenance Fund and designating the Department of Accounting and General Services as the expending agency; and
(15) Appropriating $41,772 for a civil-service exempt position within the Department of Accounting and General Services to coordinate public and private efforts to repair and maintain public schools;
(16) Making the endowment component of the fund optional, not mandatory;
(17) Deleting the provision requiring compliance with chapter 42F, Hawaii Revised Statutes;
(18) Changing the recipient of the annual independent audit of the fund from the Attorney General to the Department of Accounting and General Services;
(19) Deleting the Attorney General from the roster of entities authorized to inspect the records of the fund; and
(20) Numerous technical, nonsubstantive amendments for the purposes of clarity.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 493, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 493, S.D. 2, H.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
ON THE PART OF THE SENATE |
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____________________________ KEN ITO, Co-Chair |
____________________________ NORMAN SAKAMOTO, Chair |
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____________________________ BOB NAKASONE, Co-Chair |
____________________________ BRIAN T. TANIGUCHI, Co-Chair |
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