Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2538, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the issuance of special purpose revenue bonds (SPRBs) to assist Iolani School.

This measure authorizes the issuance of SPRBs, pursuant to part VIII, chapter 39A, Hawaii Revised Statutes, in a total amount not to exceed $30,000,000 to assist Iolani School in the planning, construction, and improvement of its facilities.

Iolani School and the Hawaii Association of Independent Schools supported this bill. The Hawaii State Teachers Association opposed this measure.

Your Committee finds that the public interest is served by providing the youth of the State with quality educational services, which cannot be delivered effectively without a safe and appealing physical environment. In addition, these costs will not be borne by the State. Pursuant to the authorizing legislation, Act 257, Session Laws of Hawaii 2002, and the constitutional amendment approved by the voters, the bonds are not a general obligation of the State, and the schools are unconditionally obligated to pay the principal and interest.

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 S.B. No. 2538, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.