Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1176, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of general obligation bonds to take advantage of the Qualified Zone Academy Bond Program.

The Qualified Zone Academy Bond Program was created by Congress under the Taxpayer's Relief Act of 1997 to establish qualified zone academies in empowerment zones, enterprise communities, or schools serving low- or moderate-income students as prescribed under the National School Lunch Act.

In addition to financing the renovation and repair of qualified zone academies, this bill would also allow for the purchase of equipment, instructional material, and professional development as detailed under the Qualified Zone Academy Program's guidelines. The Program has received strong support from not only the Department of Education, but the business community as well, which has expressed an interest in the benefits of qualified zone academies.

Your Committee has amended the bill by changing the effective date to July 1, 2050, to promote further discussion on this matter.

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 H.B. No. 1176, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1176, H.D. 1, S.D. 1.