Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 2836 entitled:

begs leave to report as follows:

The primary purposes of this measure as referred to your Committee were to set the fee that the Department of Education (DOE) can charge for the driver education program, and to create a special Driver Education Fund to hold the fees.

Your Committee received testimony in support of this measure from the Department of Transportation, DOE, and the Hawaii Insurers Council.

Your Committee finds that the driver education program operated by DOE costs the Department approximately $225 per student, and that DOE lacks the resources necessary to administer the program to every eligible student, particularly following the mandate of Act 175, Session Laws of Hawaii 1999.

Therefore, your Committee supports this measure insofar as it creates a special fund to segregate and hold these important funds.

In addition, your Committee supports an increased fee for the DOE's driver education program. As introduced, this measure set the fee at $100. However, based on concerns raised by DOE, your Committee amended this measure to allow the Board of Education to continue to establish the fee. This will give the Board continued discretion to set the fees at a reasonable level for students, especially students from low income families.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2836, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2836, S.D. 1, and be referred to the Committee on Ways and Means.