Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2060 entitled:

begs leave to report as follows:

The purpose of this measure is to fund the highly successful curriculum research and development group of the University of Hawaii to produce a strategic analysis report on the educational materials production industry in Hawaii.

The measure also establishes a policy of the State to identify, track, analyze, and support public and private organizations capable of providing high-quality, marketable educational services capable of generating economic benefits.

Your Committee finds that education is not only a function of government, but a potentially lucrative industry for the State. The development of high quality educational books, materials, and curricula is a multi-billion dollar industry. Hawaii has shared in some of that benefit through the efforts of the University of Hawaii's curriculum research and development group. For example, for a $500,000 investment, the group produced its highly regarded Fundamental Approaches to Science and Technology science materials and marketed it on the mainland and throughout the world. Those materials have brought in nearly $50,000,000 to the State – nearly one hundred times the initial investment.

Your Committee finds that the educational materials industry has a promising future in Hawaii. By stating a policy of supporting this industry, and by funding a strategic analysis for the curriculum research and development group, the potential for expansion of this industry is significant and potentially very lucrative.

Your Committee has amended this measure by leaving the amount of the appropriations blank to further discussion, and by making technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2060, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2060, S.D. 1.