Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 638, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow taxpayers to designate $2 of their income tax refund to support the Hawaii state public library system.

Testimony in support of this measure was submitted by the State Board of Education and the Department of Taxation. The Tax Foundation of Hawaii submitted comments on this measure.

Your Committee finds that the Hawaii State Public Library System is a critical component of our statewide education network. Your Committee further finds that allowing taxpayers to make a donation to the state library system is both an innovative and efficient method of fundraising that can assist with the rising costs of maintaining an updated collection for library customers. However, your Committee believes that the State Librarian should be able to leverage taxpayer donations with state funding to support providing expanded library services, provided that the donors are aware that their funds will be used to support library operations.

Thus, your Committee has amended this measure by allowing the State Librarian to use privately donated moneys to support library operations, including staff salaries and facilities costs, provided that donors are advised that their funds may be used for this purpose.

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. 638, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 638, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.