Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 2787, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the Department of Education Storeroom Revolving Fund.

Written testimony in support of this measure was received from the Hawaii State Teachers Association. Oral supportive testimony was received from the Department of Education (DOE).

Currently, the DOE maintains a centralized storeroom from which supplies and equipment are furnished to the State's public schools. Funding for the storeroom is provided through the DOE storeroom revolving fund.

Your Committee finds that the storeroom operations are plagued by numerous problems, including slow distribution practices, vague inventory controls, and a surplus of obsolete supplies, and, therefore, should be terminated. Accordingly, this measure repeals the revolving fund and requires the transfer of unexpended moneys in the fund to the general fund.

Your Committee notes that while this measure does not take effect until December 31, 2002, to allow for the winding down of storeroom operations, it had extensive discussions about changing the effective date of this measure to June 30, 2002, in order to provide an impetus for the termination of the existing lease and ensure no further purchases are made from the revolving fund. Your Committee requests that the Committee on Ways and Means explore mechanisms for the receipt of inventory liquidation proceeds and consider whether the fund should be terminated at the earlier date of June 30, 2002.

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 H.B. No. 2787, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.