Report Title:
Qualified Zone Academy Bonds; Authorization
Description:
Allows the DOE to utilize the Working Families Tax Relief Act to allow for the issuance of qualified zone academy bonds to subsidize school repair, renovation and restoration projects, equipment and technology acquisition, curriculum development, and teacher training. (SD2)
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THE SENATE |
S.B. NO. |
1248 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The department of education is aware that Congress passed the Taxpayer Relief Act of 1997 and extended it through the Working Families Tax Relief Act of 2004. The Acts made funds available for governments to issue qualified zone academy bonds to subsidize school repair, renovation and restoration projects, equipment and technology acquisition, curriculum development, and teacher training in those areas designated as empowerment zones or enterprise communities. Through this program, schools can qualify if at least thirty-five per cent of their students are eligible for federal school lunch programs and the issued bond must:
(1) Require ninety-five per cent or more of the proceeds to be used for a qualified purpose with respect to a qualified zone academy established by an eligible local education agency;
(2) Be issued by a state or local government jurisdiction where the academy is located;
(3) Require its issuer to designate the bond as a qualified zone academy bond and certify that it has written assurances from private businesses meeting private contributions requirements and written approval of the eligible local education agency for such bond issuance; and
(4) Not have its term exceed the allowable term as designated by the United States Secretary of the Treasury.
Furthermore, the bond issuance is subject to a state allocation of the national limitation on the basis of a state's population below the poverty line as defined by the United States Office of Management and Budget.
This federal program was created to help educators, employers, and the community work together to ensure that students in economically depressed areas will have the facilities, education, and skills to prepare for today's competitive global economy.
The purpose of this Act is to give the department of education debt authorization to enable the qualified zones or schools to take advantage of its federal designation to subsidize school renovation and restoration projects, equipment and technology acquisition, curriculum development, and teacher training.
SECTION 2. The director of finance is authorized to issue bonds or to secure loans in the sum of $ , or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal biennium 2005-2007 to subsidize school renovation and restoration projects, equipment and technology acquisition, curriculum development, and teacher training in qualified zones and schools under the federal Qualified Zone Academy Bond program.
SECTION 3. The appropriation made by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from that appropriation that are unencumbered as of June 30, 2008, shall lapse as of that date.
SECTION 4. The sum appropriated shall be expended by the department of education for the purposes of this Act.
SECTION 5. This Act shall take effect on July 1, 2005.