STAND. COM. REP. NO.1384

Honolulu, Hawaii

, 2001

RE: S.B. No. 493

S.D. 2

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 S.B. No. 493, S.D. 2, 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 eliminate the public schools' $640,000,000 repair and maintenance backlog by:

(1) Establishing the Hawaii School Repair and Maintenance Trust Fund (Trust Fund) under Hawaii 3R's, a project of America's Promise Hawaii, into which may be deposited contributions, grants, endowments, or gifts from all sources, including corporations, foundations, government, individuals, and other parties;

(2) Authorizing Hawaii 3R's to award grants or contracts for the repair and maintenance of public schools;

(3) Allowing contractors, engineers, architects, surveyors, and landscape architects to claim an income tax credit for contributions of in-kind services provided to schools for repair and maintenance; and

(4) Appropriating $5,000,000 to the Trust Fund for start-up and other program expenses to be matched by private sector donations and contributions from the federal government.

The Hawaii State Teachers Association, the Chamber of Commerce of Hawaii, Hawaii Business Roundtable, the American Society of Civil Engineers, Hawaii 3R's, and the General Contractors Association of Hawaii testified in support of this measure. The Department of Accounting and General Services (DAGS), the Department of Education, and the Department of Taxation supported the intent of this bill. The Tax Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

(1) Inserting a public purpose statement;

(2) Replacing references to "Trust Fund" with "Fund;"

(3) Deleting the requirement that state appropriations be matched by other contributions;

(4) Requiring that DAGS approve all proposals for consistency in meeting design and materials standards for public schools;

(5) Exempting organizations or agencies that apply for grants or contracts from chapter 103D, Hawaii Revised Statutes (HRS), and specifying that America's Promise Hawaii be held accountable for the use of the funds under contract with DAGS that ensures compliance with chapter 42F, HRS;

(6) Deleting the requirement that unspent funds be returned or distributed in the event that the Fund is terminated or Hawaii 3R's is dissolved;

(7) Specifying that the appropriation is a grant-in-aid to America's Promise Hawaii, and making America's Promise Hawaii the expending agency instead of Hawaii 3R's;

(8) Change appropriation amounts to $1 for purposes of continued discussion; and

(9) Making technical, nonsubstantive amendments for the purpose of consistency and to correct drafting errors.

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 S.B. No. 493, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 493, S.D. 2, H.D. 2.

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

____________________________

DWIGHT Y. TAKAMINE, Chair