Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Education and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 806 entitled:

beg leave to report as follows:

The purpose of this measure is to exempt the acquisition of school facilities by leases from the law relating to the management of financing agreements; provided that notice of such agreements is given to the director of finance. This measure also requires the Department of Education to enter into a lease agreement for a Kihei high school.

Testimony in opposition to this measure was submitted by the Department of Education and the Department of Budget and Finance.

Although Kihei is one of the fastest growing communities in the State, and it is time for this community to have its own school, your Committees do not want to specifically name Kihei in this measure.

Therefore, your Committees have amended this measure by deleting section 2, in reference to a Kihei high school, which leaves the Department of Education with the discretionary authority to enter into financing agreements, based on the merits of any proposed or approved school, and not be subject to chapter 37D.

As affirmed by the records of votes of the members of your Committees on Education and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 806, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 806, S.D. 1, and be referred to the Committee on Ways and Means.