Transfers control of management and funding for school repair and maintenance to the department of education.

A BILL FOR AN ACT

SECTION 1. The children and teachers of Hawaii's public schools require safe, secure, well-maintained, and clean schools to achieve high levels of teaching and learning. It has become increasingly clear that the conditions of our public schools depend on the availability of funds and effective management of facility needs. Currently, the facility needs of many of our schools are not being met or properly addressed. Support, resources, technical assistance, training, and services are necessary to enable our school community to reach and maintain the highest level of performance standards.

The State has invested approximately $1,700,000,000 in the construction and maintenance of our public schools. However, the funds have not been available to adequately repair and maintain these facilities. In 2001, the legislature passed and the governor enacted Act 316, which:

The repair and maintenance program is currently operated under a memorandum of agreement between the department of education (DOE) and the department of accounting and general services (DAGS). Under this arrangement, DAGS serves as the expending agency and overall project manager, and controls the implementation of all school-related repair and maintenance activities. A 1992 report by the auditor and other reports have attributed much of the increasing backlog and overall inefficiencies in school repair and maintenance to the lack of control afforded to DOE under this agreement.

As cordial as the current relationship between DOE and DAGS may be, it fails to encourage innovation, good customer service, and a drive toward greater efficiency. Accountability for the expenditure of sizable amounts of funds is also not clearly established. To maximize the use of valuable taxpayer dollars, DOE should be provided with the authority to expend and manage repair and maintenance moneys and be held accountable for effectively and responsibly performing these duties.

Accordingly, the purpose of this Act is to transfer control over school repair and maintenance management and funding from DAGS to DOE. The legislature intends that in managing school repair and maintenance, DOE may either contract with DAGS or private entities, through a competitive process, to perform repair and maintenance services in conformance with existing school repair and maintenance laws.

SECTION 2. Section 36-35, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a) and (b) to read:

"(a) There is created in the state general fund under [AGS 807 (physical plant operations and maintenance)] EDN 100 (school-based budgeting) the state educational facilities repair and maintenance account, into which shall be deposited legislative appropriations to the account designated for use solely to eliminate the backlog of school repair and maintenance projects, including the repair or replacement of fixtures, furnishings, and equipment, existing on June 30, 2000. Expenditures from the account shall be subject to sections 37-31 and 37-33 to 37-40. Appropriations or authorizations from the account shall be expended by the [comptroller.] superintendent of education.

(b) The department of education[, with the assistance of the department of accounting and general services,] shall review the existing condition of school facilities and establish specific vision plans for each school complex based on current repair and maintenance requirements and overall repair and maintenance priorities."

2. By amending subsections (e) through (g) to read:

"(e) The expenditure of funds for any project with an estimated total cost of less than $100,000 shall be exempt from chapter 103D and section 464-4; provided that:

For all projects, the [comptroller] superintendent of education shall develop a strategy for the efficient and cost-effective use of government and private-sector workforces and consider increased flexibility through public-private partnering, design-build options, cost plus, job order contracts, performance-based contracts, request for proposals, and any other means to improve communications and accelerate repairs while preserving the quality of the repairs.

(f) The [comptroller] superintendent of education shall ensure that all repair and maintenance projects achieve maximum cost-efficiency by emphasizing functional or performance criteria, uniformity of design, and commonality of products, and by avoiding unique or custom requirements that increase costs. The [comptroller] superintendent of education shall develop project specifications based on generic specifications or prescriptive specifications using standard commercial products. Prescriptive specifications may include a qualified product list.

For the purposes of this subsection:

"Generic specification" means a technical specification that is written in a clear, unambiguous, and nonrestrictive manner establishing:

"Prescriptive specification" means a technical specification:

"Standard commercial product" means a product or material that in the normal course of business is customarily maintained in stock by, or readily available for marketing from a manufacturer, distributor, or dealer.

This subsection shall not apply to any school facility designated a historic property pursuant to section 6E-5.5.

(g) The [comptroller] superintendent of education shall submit an annual report to the legislature, which shall include a financial statement of the account and the status of repair and maintenance projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session. Expenditures for repair and maintenance projects undertaken pursuant to this section shall be posted electronically on the Internet by the department of [accounting and general services] education within thirty days of each project's completion."

SECTION 3. Section 36-36, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) There is created in the state general fund under [AGS 807 (physical plant operations and maintenance)] EDN 100 (school-based budgeting) the school physical plant operations and maintenance account, into which shall be deposited all legislative appropriations to the account.

The moneys in the account shall be used solely for school repairs and preventive maintenance projects scheduled after June 30, 2001. Expenditures from the account shall be subject to sections 37-31 and 37-33 to 37-40. Appropriations or authorizations from the account shall be expended by the [comptroller.] superintendent of education."

2. By amending subsections (d) and (e) to read:

"(d) The expenditure of funds made under this Act for any project with an estimated total cost of less than $100,000 shall be exempt from chapter 103D and section 464-4; provided that:

(e) The [comptroller] superintendent of education shall submit an annual report to the legislature, which shall include a financial statement of the account and the status of school repair and preventive maintenance projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session. The department of [accounting and general services] education shall post the following reports electronically on the Internet and update them quarterly:

SECTION 4. Section 235-110.2, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (c) to read as follows:

"(c) For purposes of this section:

"Public schools" has the same meaning as defined in section 302A-101.

"Value of contributions of in-kind services" means the fair market value of uncompensated services or labor as determined and certified by the department of [accounting and general services.] education."

2. By amending subsection (f) to read as follows:

"(f) The department of [accounting and general services] education shall maintain records of the names of taxpayers eligible for the credit and the total value of in-kind services contributed for the repair and maintenance of public schools for the taxable year. All contributions shall be verified by the department of [accounting and general services.] education. The department of [accounting and general services] education shall total all contributions that the department certifies. Upon each determination, the department of [accounting and general services] education shall issue a certificate to the taxpayer certifying:

The taxpayer shall file the certificate from the department of [accounting and general services] education with the taxpayer's tax return with the department of taxation. When the total amount of certified contributions reaches $2,500,000, the department of [accounting and general services] education shall immediately discontinue certifying contributions and notify the department of taxation. In no instance shall the total amount of certified contributions exceed $2,500,000 for each taxable year."

SECTION 5. Section 302A-604.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Departmental school district business and fiscal officers shall be responsible for:

SECTION 6. Section 302A-1312, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1312[]] Six-year program and financial plan for school repair and maintenance. (a) The department [of accounting and general services, in consultation with the department of education,] shall prepare a six-year program and financial plan for school repair and maintenance, which shall be:

provided that the governor may incorporate the six-year program and financial plan required by this subsection into the six-year program and financial plan required by section 37-69, if the plan required by this subsection is incorporated without reductions or restrictions.

(b) The department [of accounting and general services, in consultation with the department of education,] shall develop and maintain a facilities physical analysis report and a facilities financial analysis report for each public school. These reports shall be posted electronically on the Internet."

SECTION 7. Section 302A-1501, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) In any case where air conditioners are installed in a particular school, the department may require that the approximate cost of electricity and maintenance for air conditioners not installed by the department [of accounting and general services] be paid by a private entity until the department establishes temperature and noise standards and a policy relating to air conditioning."

SECTION 8. Section 302A-1502, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1502[]] School inspection program. The department of education, in consultation and cooperation with the department of health [and the department of accounting and general services], shall establish a school inspection program to maintain high levels of hygiene, sanitation and health, safety, maintenance, and physical appearance for each school for the benefit of students, administrators, and staff. The program shall include but not be limited to the following:

SECTION 9. Section 302A-1504, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Each school principal [, through the superintendent,] shall submit a report annually to the department [of accounting and general services] in the form prescribed by the [comptroller] superintendent on expenditures made from each account."

SECTION 10. Section 302A-1505, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1505 Prioritization of repair and maintenance. (a) Each school shall meet with the department [of accounting and general services] on an annual basis to advise the department of school needs. Before any repair and maintenance projects for the upcoming fiscal year are implemented, each individual school administration shall prioritize and approve its repair and maintenance needs, and approve the scope of the implementation plan for the individual projects. After schools have prioritized their repair and maintenance projects, a statewide list shall be prepared and reviewed by the department [of accounting and general services, and reviewed and approved by the department of education]; provided that the department [of education] may make adjustments among schools and districts. Each school repair and maintenance priority listing [shall be submitted by the department of education to the department of accounting and general services for implementation. Each listing] shall be posted electronically on the Internet. [The department of accounting and general services shall implement the school repair and maintenance program in accordance with the priorities set forth by the department of education.]

(b) Prior to meeting with the department [of accounting and general services] to advise it of a school's repair and maintenance needs, the school's principal and the business and fiscal officer shall consider the recommendations made by the school/community-based management council, if there is such a council at the school; or the local school board, if the school is a new century charter school or a new century conversion charter school. If there is no school/community-based management council or local school board, then the school's principal shall appoint a standing committee composed of a teacher, a member of the support staff, a parent, a student, and a community member.

(c) In prioritizing a school's repair and maintenance needs, the department [of accounting and general services],] the school's principal, and the business and fiscal officer shall consider the availability of donated and discounted repair and maintenance services and materials that will be provided by community groups, volunteers, and businesses."

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.